The Cost of Creating, Managing an Esports Team

Now, more than ever, the Esports industry is gaining more traction both locally and globally as more and more casual and professional gamers are joining Esports competition such as the National Basketball Association (NBA) 2K League or even, the Formula One Virtual Grand Prix. And if you look at the success of our Esports national team that competed in the first-ever Esports tournament in the 2019 Southeast Asian Games here in the country, one cannot be blamed if he becomes interested in joining Esports not to mention how much he could make on a yearly basis. In 2016, it has been reported that the top 500 gamers worldwide earned more than 20,000 US Dollars or more than 100,000 Pesos worth of cash prizes. For a top performer in League of Legends, for example, could earn between 5,000 to 10,000 US Dollars in salary alone and that will make all of us hearing our mothers' rant about playing too many video games laugh about it. But for that to happen, you really have to at the top of your game which means you need to invest. 

If you are amazed by how professional gamers are earning nowadays, you may want to consider how Esports teams are being created and managed, not to mention the amount of money one will need to shell out in order to do both. 

For starters, creating an Esports team has become a common practice for gamers who are into multiplayer games such as League of Legends, Counter-Strike, and Overwatch. But, for one to be able to keep a successful Esports team, one has to remember that this is a business and that, having an entrepreneur's mindset is key. Before a team can compete in a tournament, one has to make an investment and among the investment that a team owner must make is the franchise to play in a game. For example, the franchise fee for a team to be able to compete in Overwatch tournaments is 20 million US Dollars. League of Legends franchise fee can cost 10 million Dollars for an existing team and 13 million Dollars for a new team. And that's just the beginning.

Of course, you need the best gamers on your team since you are investing millions just for the franchise not to mention that money you will need for the gamers' salary, equipment, and training. You will also need money to cover the team's travel expenses especially if you're regularly competing in international tournaments. Fortunately, this is where sponsorships can help you manage the cost. It's also important for newer Esports to start competing in local competitions for the time being which could help them in getting the attention of local companies who would want to become your sponsors in exchange for putting their logos in your team jackets. That way, you will have a company backing you up financially and this will help you in the long run especially if you're starting to build up success internationally. In a way, sponsorships can provide additional financial capabilities to a team.

Another aspect that one must keep in mind in managing an Esports team is that you need to get better on a daily basis. This is where the need for the best and latest gaming rigs will come into the mix. Nowadays, the best gaming personal computers (PC) can cost from 800 Dollars to 1,800 Dollars. That's just for the rigs and we aren't talking about the gaming chairs, headsets, team jackets, and other gaming equipment. 

And, of course, you need to keep on winning as a team for you to be able to keep your sponsors as well as to be able to pay your gamers. With that in mind, the most important investment you will need to make is the best line-up of gamers for your team. It might be easy at the beginning but if you are able to recruit gamers who can win, it will be easier for your team to attract more sponsors. 

Put it this way: Smart Communications Inc. handed out two million Pesos to every member of the Sibol Esports team for every team event gold medal that they ended up winning in last year's SEA Games on top of a million peso incentive for every individual event that they've won. Considering how things ended, it's worth every Peso. At the end of the day, it boils down to making the right decision. It's like hitting the right buttons. And more. 

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