The price of play: How esports teams build their millions
If you think esports is all about flashy plays, prize pools, or roaring crowds during LAN events, think again. Behind every trophy is a carefully built business. From sponsored jerseys to YouTube contracts, esports today is powered by money—lots of it.
Have a quick look at the organisations that built the world’s top rosters. Each of them now operates like a major sports franchise—scouting talents that also have the power to secure deals, land sponsorships, and manage a growing empire. For many organisations, this means handling a mix of revenue streams to stay competitive, both in the game and in business.
Curious about what exactly keeps your favourite teams thriving? Here’s a play-by-play on how esports teams make money and why brands are in love with them.
Revenue breakdown: Where do the teams’ funds come from?
To understand how esports teams earn, you need to go past the prize pool. Face the hard truth: esports teams and organisations don’t rely on one big win to survive. Instead, they build income through a combination of factors that engage fans, brands, and even platforms. Here’s where their money comes from:
Tournament winnings
Winning tournaments brings prestige and money. Esports prize pools are even considered one of the biggest in any sport. Just take Dota 2’s The International, which hit over $40 million in 2021. You can’t miss VALORANT’s Champions Tour, which averages 6 to 7 figures.
These payouts may look huge, but they’re far from being the main income source. Most teams see these winnings as bonuses. The prize money is often split between players, coaches, analysts, and team staff. It’s also inconsistent, as you only get paid if you win or place well.
Esports organisations don’t build financial stability on wins alone. The top teams know they need more consistent ways to earn.
Merch and apparel sales
If you've ever seen a fan rock a 100 Thieves hoodie or a Liquid x Marvel exclusive drop, you’ve already witnessed one of esports’ strongest revenue drivers. Jerseys, hoodies, mousepads, and even fashion houses are part of the game now.
This trend marked the start of esports teams as lifestyle brands rather than just teams. Merch drops are often limited and tied to team lineups or seasonal events. This not only brings direct revenue but also fosters a team’s identity in the eyes of its fans.
In a way, selling these merch bridges the gap between digital fandom and physical culture. It also provides the teams with a reliable stream that’s far from competitive play.
Streaming and content creation
Many esports teams run dedicated content with people who help craft daily streams, BTS vlogs, and game guides. Players also maintain their personal channels, which is a smart move that turns their audience into income.
Platforms like Twitch and YouTube pay out through ads, subscriptions, and donations. Some players would also sign exclusive deals that lock them to one platform (e.g., YouTube) for a guaranteed income.
Take FaZe Clan as an example. It built its brand on content, gathering creators who brought millions of views on YouTube. Even Luminosity Gaming’s Tyler 'Ninja' Blevins once revealed he earned up to $500,000 a month from Twitch alone, thanks to over 160,000 paid subscribers.
Sponsorships and brand deals
Sponsorships are where the bulk of the money flows in. Studies show that 74% of a team’s revenue comes from brand deals. These include jersey sponsors, banner ads, co-branded content, and product placements.
Think Red Bull on player uniforms, BMW backing esports tournaments, or Logitech pushing custom gear with pro teams. The reason? Esports fans are loyal, young, and digital-first—a perfect target for global brands and their engagement.
Where does the money go? Here’s how teams fuel their growth
All the money earned by teams doesn’t sit around. Beyond salaries, teams reinvest most of their earnings into growth for the players and their brand. Here’s how the expenses play out behind the scenes:
- Player salaries and team costs
Tier 1 players can earn anywhere from $10,000 to $40,000 a month, heavily based on the game and region they’re playing. The org also covers housing, travel expenses, boot camps, gaming setups, and staff salaries. Coaches, analysts, and team managers are all crucial to the success of a team.
- Expansion and brand growth
Teams also use their revenue to expand. Some scout new talent through grassroots tournaments or academy teams, while others expand into new titles or regions. For example, Gen.G and Team Liquid run region-based divisions across Korea, the US, and Europe—each with its own rosters and staff.
But why do brands keep investing in esports?
In a world where ad fatigue is real, and attention spans shrink by the second, esports offers something rare: an audience that listens, watches, and responds. It’s no wonder brands are spending millions to be part of the action.
However, this goes beyond ads. Top sponsors like Red Bull and Nissan fund training hubs, sponsor league segments, and even collaborate on in-game content and limited drops.
Esports also thrive in the community. Fans rally behind their teams, and when a brand shows support, the audience often pays it back. For brands, this loyalty is gold—one that keeps them exactly in the game.
Money plays with the games
Esports has outgrown its stereotypes. From a hobby, it’s now a thriving business network built on sharp tactics, digital culture, and global influence. Teams make money not just from winning but also from building brands. They use this income to scale even higher and play even better.
Meanwhile, brands don’t settle for a mere ad space. They’re buying a culture—one that’s active, passionate, and already ahead of the curve. In a sense, business in esports doesn’t just sit behind the screens. It’s part of the game.
