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Esports & Gaming Business | Join 10,000+ readers for insights on esports strategy, brand building & the business behind the game. https://xitter.cf/t.co/DJbiPcljNL
Oberhausen
Joined July 2012
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Reaching millions of impressions has never been the predominant issue in modern esports marketing. The big question, however, is: How do we monetize that reach?
A recent initiative by G2 that almost flew under the radar is, in my opinion, one of the most interesting esports marketing activations in recent years.
Read the full story entirely for free on my Substack.
True. There are some orgs that have built and keep maintaining great partnership portfolios. Team Liquid is certainly one of them, but also Team Vitality, T1, G2, and SK Gaming among a few others.
I can also see orgs building their in-house agencies having a huge advantage in the future.
When I got into the business side of esports, I was always fascinated by Alex Garfield's strategy for building EG and how he approached marketing in general. He secured sponsorships in a time when you had to explain what the hell esports is before you could even pitch your project.
EG always seemed to have more money than anyone else. But it was based on honest work and expertise, so even competitors could respect that.
Would love to see him getting EG back and see what he can build from the ashes.
The greatest rivalry that Liquid ever had in esports was the one in StarCraft 2 between us and Evil Geniuses. In the early days before the scene really developed, the sentiment was that TL was the community darling building talent from the ground up and EG was the evil empire buying players left and right to buy themselves trophies. In those early days, I did not know the people behind the organization.
We competed in all the big tournaments against each other, and when HuK was at his peak, one of the most difficult moments in our organization's history happened when he made the switch to EG. Yet despite the rough start to our relationship, throughout the variety of events that we both attended, Alex Garfield and I ended up spending more and more time together. While we always remained fierce competitors and enemies on the battlefield, I had started to see him as a friend and incredibly skilled rival, peer, colleague, and eventually, ally.
In order to make it in this space, organizations such as Liquid and EG need to work together, and in those years it felt like we were having a positive impact and building a healthier ecosystem for all. Eventually we created the Holy Alliance: bitter rivals teaming up to take on the Korean professional teams on ProLeague was a reflection of the ambition of both of our organizations, as much as it was a statement on the development of our work together behind the scenes.
In my 25 years in esports I can say without a doubt that Alex was one of the most brilliant people I have worked with. Even with investment dollars coming in, new founders coming up and experienced CEOs entering from outside the industry, I will forever hold Alex’s strategy and understanding of the space in the highest regard.
It is sad to see that Evil Geniuses is finally closing its doors and I feel especially for all of its staff and players. However, not all is lost. I know this is a business, and ultimately it is up to those who now own the brand, but I would really like to urge the current owners of the brand to do all of esports a favor and allow for a transfer to Alex. Or in the words of HuK: “GG's, give the brand or sell it super cheap back to @alexgarfield please and thanks” 🙏
Man könnte der ganzen Farce auch unabhängig von ESIC seitens der Liga oder der betroffenen Organisation ein Ende setzen. Das würde den Schaden zumindest begrenzen und ein Stück Glaubwürdigkeit wiederherstellen.
Abschließendes Update zu den Verdachtsmomenten rund um @RVMultigaming.
Nach erster ESIC-Prüfung fehlen abseits der Ingame-Szenen eindeutige Beweise für Matchfixing, weshalb wir vorerst keine Sperren verhängen und Reveal in den Ligabetrieb zurückkehrt.
#DACHCSMasters
Michael Decker retweeted
I'm not expecting next-gen consoles to cost less than $1000, and I think the reality is that next-gen will be an enthusiast-only console.
Current-gen consoles will probably be supported for the next 10 years because next-gen will never have enough volume on its own to release next-gen-only titles and make those games profitable.
EG has certainly left its mark in esports.
Former CEO Alex Garfield did some early marketing magic when sponsoring esports was something almost no company outside of gaming had ever heard of.
They also probably were the first org to really see their players not only as people moving pixels in online games, but as true influencers that hold marketing value that could be monetized.
Sadly, the brand took some wrong turns it could never recover from.
I see a lot of responses from team owners on the post of @LudwigAhgren regarding Valorant's VCT partnership program.
If the consensus is that T2 / T3 esports simply isn't sustainable due to high costs for player salaries, then I suggest orgs stop paying high salaries.
If T2 / T3 can't sustain players having a full-time profession, then it is not up to the orgs running at a loss to still allow that.
It's Riot's job to make their esports sustainable for more than a handful of teams if they want to keep being hands-on with it. Otherwise, just give up control for a free market to develop just like in CS2.
I'm still shocked by the videos showing @TeamVitality's headquarters in Paris being robbed and vandalized by rioters.
It's a shame how the hard work of good people is being destroyed by straight-up criminals. This has nothing to do with the right to demonstrate, nor with fighting for a greater good. It's vandalism and theft, and it's hard to see how powerless a great country like France is in the face of these riots.
I sincerely hope Team Vitality can get their V.Hive up and running again soon and at least get replicas of the trophies that were stolen.
What I like most about Team Vitality's expansion into China is that they're going all in on their own brand.
Usually, Western esports teams partner with regional organizations to enter the Chinese market.
Team Vitality is taking a different approach, building its presence under its own brand through social media channels, events and partner activations.
Impressive!
Michael Decker retweeted
Wir suchen Verstärkung für drei vergütete Positionen! 🎯
Für die weitere Entwicklung von Entropy suchen wir Leute, die tatkräftig anpacken, Verantwortung übernehmen und gemeinsam mit uns langfristig etwas aufbauen wollen.
Alle Positionen werden nach vorheriger Vereinbarung finanziell oder in Form von Sachprämien mit einer festen, kleineren Vergütung honoriert. Die Vergütung entwickelt sich dabei gemeinsam mit dem Wachstum von Entropy weiter, sodass du auch persönlich vom Erfolg deiner Arbeit profitierst.
Alle Aufgaben können bei freier Zeiteinteilung vollständig remote ausgeübt werden und lassen sich flexibel mit Arbeit, Schule oder Studium verbinden.
Projektleitung / COO (m/w/d)
Du leitest das Tagesgeschäft bei Entropy und koordinierst dabei ein kleines, gut strukturiertes Team aus motivierten Mitarbeitern.
Dein Hauptfokus liegt darauf, Entropy gemeinsam mit uns kontinuierlich weiterzuentwickeln, interne Abläufe zu koordinieren und gemeinsam definierte Ziele zu erreichen.
Dein Profil:
▪️Deutsch und Englisch in Wort und Schrift
▪️Umfangreiche Vorerfahrung im Esports-Management
▪️Gute Kenntnisse der Esports-Szene, insbesondere in Deutschland
▪️Flexibilität und die Bereitschaft, dich in neue Aufgabenbereiche einzuarbeiten
▪️Kommunikative und klare Art bei der Leitung eines kleinen Teams
▪️Eigene Ideen und Visionen, um Entropy langfristig voranzubringen
Social Media Manager – Allgemein (m/w/d)
Du betreust unsere allgemeinen Social-Media-Kanäle, erstellst eigenständig Beiträge und interagierst mit unserer Community von insgesamt mehr als 70.000 Followern auf unseren verschiedenen Kanälen.
Zusätzlich arbeitest du mit internen und externen Grafikern und Video-Editoren zusammen, um kreativen Content rund um Entropy zu entwickeln und über unsere Kanäle zu verbreiten.
Dein Profil:
▪️Deutsch und Englisch in Wort und Schrift
▪️Erfahrung mit den gängigsten Social-Media-Plattformen
▪️Gute Kenntnisse der Esports-Szene, insbesondere in Deutschland
▪️Zuverlässige und strukturierte Arbeitsweise
▪️Kreativität und ein gutes Gespür für Social-Media-Content
Social Media Manager – Counter-Strike (m/w/d)
Du betreust unsere Social-Media-Aktivitäten rund um Counter-Strike und begleitest unser Team mit aktuellen, kreativen und relevanten Inhalten vor einer bestehenden Community von mehr als 60.000 CS2-Followern.
Dabei erstellst du eigenständig Beiträge rund um Matches, Turniere und aktuelle Entwicklungen und arbeitest mit unseren Grafikern und Video-Editoren zusammen, um unseren Counter-Strike-Content kontinuierlich weiterzuentwickeln.
Dein Profil:
▪️Deutsch und Englisch in Wort und Schrift
▪️Erfahrung mit den gängigsten Social-Media-Plattformen
▪️Sehr gute Kenntnisse der Counter-Strike- und Esports-Szene
▪️Zuverlässige und strukturierte Arbeitsweise
▪️Kreativität und ein gutes Gespür für relevanten Counter-Strike-Content
Interesse?
Dann freuen wir uns über eine Nachricht via Discord (ID: midecker) und einen kurzen, aber aussagekräftigen Text darüber, wer du bist, welche Erfahrungen du mitbringst und warum du gut zu Entropy und der jeweiligen Position passt.
We finally get a first look inside T1's massive 1,500-square-meter esports venue in Seoul.
And it looks pretty impressive.
Located just a two-minute walk from Sinnonhyeon Station, the new venue will offer pretty much everything a gamer could dream of:
▪️a 24/7 gaming area with high-end hardware for both solo players and teams
▪️huge LED screens for viewing parties
▪️experience zones where fans can try products from T1's sponsors, including a sim racing area
▪️a trophy room celebrating T1's history
▪️a new flagship merchandise store
▪️and even a premium restaurant led by T1's own chef
The new Gangnam-based venue is already T1's third location in Seoul.
And their strategy is becoming a textbook example of how to build and monetize a local fanbase.
👉 I wrote about T1's impressive business model and how they capitalize on their huge fanbase just a few days ago on my free Substack.
So if you want to understand the business strategy behind this new venue, I recommend giving it a read.
---
📸 @T1
ENVY is synonymous with one of the best eras of French Counter-Strike.
But they last competed five years ago and won their last trophy nine years ago.
That's a long time in esports.
So the big question for their return is:
Can ENVY win back old supporters and become a fan favorite again?
The brand power is certainly there. Now they need the content and results to back it up.
With @Complexity gone, the list of true OG orgs is getting shorter. Few are left and still doing fine, like @SKGaming or @mousesports. But I sometimes wonder what amazing brands the likes of 4Kings, Meet Your Makers, mTw or Team 3D could have become if they had made it into the modern era of esports.
HEROIC just announced a three-year extension with their main sponsor @RazedEsport.
What's really striking here is the contract duration.
Building long-term strategic partnerships is more important than ever in the current esports landscape. Teams need both growth and sustainability and thus have to plan their next steps years in advance.
With rising costs for players, staff, facilities and more, esports orgs can't afford to work on a year-by-year basis anymore.
Step 1: Sell your players to a team that is willing to pay a lot for them. ✅
Step 2: Sign new talents. ✅
Step 3: Overtake the team that spent big on your players in the rankings just a few months after. ✅
That's how you combine smart business with clever team management.
"I literally had $5,000 to my name and that $5,000 was supposed to pay my mortgage on my house. So what did I do? I used that $5,000 to send the team to Dallas... They won in Dallas, the next weekend they went up to San Francisco and won again, they won $50,000 in prize money and my cut was $5,000 and I paid my house payment." - @JasonBWLake
Jason Lake put half a million dollars of his own money into his brand @Complexity in the early 2000s and wore a tie throughout events to make esports look more professional at a time when many teams didn't even wear jerseys.
A true pioneer of esports.
The clip is from "compLexity: Redemption", while the quote comes from @Thorin's Reflections series. I highly recommend both if you're interested in one of the most fascinating stories in all of esports.
If esports business is your thing, I share more of my thoughts and analysis on my free Substack.
esportsbusiness.substack.com…
G2 Esports made €3.1 million profit. But the numbers tell a bigger story.
A €3.1 million profit grabs the headlines, but G2's declining sponsorship revenue and growing diversification reveal something more important about the future of esports
In an industry where most brands are still far from turning a profit, one of the market leaders reporting a notable surplus is certainly worth noting.
But looking at the bigger picture behind G2 Esports’ financials reveals much more: The business model of modern esports brands is changing.
In 2024, the Berlin-based company made a net profit of €3.1 million.
While this sounds great on the surface, a closer look at the numbers paints a more nuanced picture.
Revenue dropped sharply from €25.1 million to €16.5 million (-34%), while sponsorship income more than halved, falling from €14.5 million to €6.8 million (-53%).
The €3.1 million net profit was largely driven by the sale of Solana tokens, which generated €16.1 million in proceeds and €12.8 million in capital gains.
A welcome one-off boost for the bank account – but not a sustainable revenue stream for years to come. Once sold, these tokens are gone.
Looking only at the 2024 numbers, the outlook for G2 would not be the best.
But for 2026, the organization is targeting revenue in the range of €23-25 million.
Not from selling crypto, but from diversifying its revenue streams.
Esports is still heavily dependent on sponsorships. Even one of the most prominent brands in the industry, such as G2, is not immune to losing key sponsors or shrinking marketing budgets – as happened in 2024.
While sponsors will still make up a large part of G2’s income, additional revenue streams have been further developed in the past years:
▪️League participation fees and revenue shares from digital item sales monetize G2’s competitive success and fanbase beyond traditional sponsorships.
▪️Their in-house agency “62” runs lucrative campaigns for companies such as Ubisoft.
▪️They even expanded beyond esports with their Kings League football team “G2 FC”.
And this is where G2’s financials offer a valuable lesson.
Turning a profit is great.
But more important than the results of a single year is the long-term strategy.
And with a much more diversified business model than a few years ago, G2 Esports is certainly playing it right.
I regularly dive deeper into stories like this on my free Substack, covering the business, marketing and strategy behind esports. The link is in my profile. Feel free to join!
📸 Bartosz Plotka, Riot Games
T1 makes most of its money from fans, not sponsors. Now they’re doubling down on that with a new 1,500-square-meter venue in Seoul.
Korean powerhouse T1 is one of the very few esports brands that reported a net profit last year – despite fielding one of the most expensive teams in all of esports.
But what’s even more impressive is their biggest revenue stream.
Their fanbase.
Over 80% (~$49 million) of T1’s revenue comes from product sales such as jerseys, shirts, caps, keychains, mousepads, player figures and other collectibles.
More than 360 products are currently available in their online shop, which ships to pretty much anywhere in the world, with many also available at their local stores in Seoul.
And with their latest announcement, T1 underlines that they are one of the smartest companies in esports when it comes to monetizing their huge fanbase and further diversifying their business.
With the opening of their third esports venue in Gangnam, Seoul, next month, T1 will offer both fans and sponsors a 1,500-square-meter space that feels like every gamer’s and marketer’s dream:
▪️a 24/7 gaming area with top-class hardware for both solo players and teams
▪️several huge LED screens for viewing parties
▪️experience zones, such as a sim racing area, where fans can try the latest products from T1’s sponsors
▪️a trophy room celebrating the history of the brand
▪️a new flagship merchandise store
▪️a premium restaurant led by T1’s chef
And all of that is just a two-minute walk from Sinnonhyeon Station, making the venue perfectly accessible for fans.
T1’s popularity and business success in recent years have been closely connected to their superstar player Faker and their packed trophy cabinet.
But by expanding their local presence, even far beyond gaming, they are deepening their connection with fans in Seoul, the capital of esports, while simultaneously providing more value to their sponsors.
With that, T1 is about to set a new benchmark for how modern esports brands can diversify their business model and position themselves as one of the leading sports teams in their home market – far beyond esports alone.
If you enjoyed this breakdown, I regularly share more analysis on the business behind gaming and esports on my free Substack (link in my profile).
