How do Esports Teams Make Money? – Esportz Network

How do Esports Teams Make Money? – Esportz Network

It’s no surprise that the esports industry keeps growing and it’s largely thanks to the teams creating competition and engagement. Unfortunately, these teams often struggle to survive and grow, especially during the global COVID-19 pandemic. With tournaments moving online for nearly 12 months now, earning revenue from live events is impossible. Clearly, teams are still thriving and growing despite the setback and fans wonder how esports teams still make money and generate revenue streams.

IEM Katowice 2020 shows empty esports stadium.

Image credit to Esportz Network.

How Esports Teams Make Money

As of this writing, revenue and profit reports on the biggest esports companies and teams are not public. Because of this hidden piece of information, many don’t know about the finances behind the scenes. Besides the best of the best, most esports teams are not profiting and actually lose money over time. Running an esports team usually does not generate revenue at first and takes lots of building. So how do esports teams make money and create sustainable sources of revenue?

Tournament Prize Money

The most obvious method to earning revenue as an esports team is winning tournaments. Although prize winnings are a very inconsistent way to make money, it’s the most natural way for them.