Esports are becoming more popular than ever and prize pools are increasing at a staggering rate. However, it isn’t easy to run a professional esports team. The competition for talent is intense and it’s not uncommon for a top-tier team to have a payroll of several hundred thousand dollars each year. This is why it’s important to understand the economics of running a professional esports team before you invest in one. Learn more https://ufabet.partners/blog/รูปแบบบาคาร่าทั้งหมด/

To begin with, you’ll need to find a place where your team will be able to meet and practice. This could be as simple as a room in someone’s house that can double as the team’s headquarters. However, as the team grows it will probably be necessary to move into a larger facility that is dedicated exclusively for gaming.

Once you have a location in mind it’s time to start looking for sponsors. Esports teams depend on sponsorships to pay for tournament fees, salaries, and equipment. You’ll also need to find a way to fund any travel expenses that may come up.

The Economics of Running a Professional Esports Team

The income approach is most likely the most common method used when valuing an eSports team. This is because eSports teams are still relatively new and viewership numbers, sponsorship numbers, and team-running costs have yet to stabilize. Consequently, the use of multi-year projections that account for potential growth will be essential to accurately measure cash flow.

The cost approach is less commonly used because of the aforementioned factors, but it can be useful when evaluating eSports teams. It is based on the idea that a company’s assets are worth more than its liabilities, so by subtracting operating expenses from revenue you can get an approximate value for the team.