The streamer who spent $1M on an esports team says esports is a terrible business: ‘Everyone is losing a lot of money’
Disguised Toast has shared a blunt, bleak look at the current state of the esports business in North America.
To be fair, he bought the esports team in an attempt to save the league and the sport as a whole. He was well aware that it was on the verge of collapse. It's a passion project for him, something to spend his streaming money on.
Disguised toast seems like a really good dude tbh, didn't know about him until he got into esports but he's really been a breath of fresh air for that scene.
Once he signs DSG | Cody to dominate the melee scene he will be the goat team owner
Recently Richard Lewis made a video about the financial situation in eSports: Esports Fans Need To Start PAYING
I know Ence is one team in CSGO who's generating profits. They are a smaller orgs that has in game success.
I think the issue is you have some teams full of venture money that inflates the salaries and makes it super hard for other teams to have in game success while not going broke.
That being said my suggestion for csgo (it's only scene I follow) would be leagues line in traditional sports. Each team plays a game every week and you have playoffs at the end of the year. Put those league games on your own platform and have people pay a subscription to watch. I would pay up to 100$/year (I'm aware I'm the exception). With this model you might even be able to have a few hubs where games are played at a small venue in front of paying crowd. I could imagine a few hubs where teams would move to to play regularly. Something like: New York, Rio, Malta, Copenhagen, Moscow
I think one of the biggest problem is demographics, the younger generations that's in eSports is broke. No eSports fan is going to buy a Dodge RAM (using this as an example because traditional sports are littered with pick up ads and the car industry is a huge advertiser because they need to constantly gaslight people into thinking that driving isn't a chore)
The bloke had a milly, threw it at the wind and expected it to come back to him.