The North American esports business is in dire straits, according to streamers who spend $1 million on their teams.
Wang founded a Valorant team called DSG in January, then added a League of Legends team to the roster. Five months later, Wang was told he would lose $1 million within his first year, double what he had originally expected.
Wang said there was little prospect of profit from the team. “[My accountant] I sent all these red numbers to this spreadsheet and made a note in the earnings section [that] “Blocked,” he explained. “I asked him, ‘Why did you block me?’ He said, ‘It’s not blocked, it’s just nothing.’ “
Wang said it wasn’t just his team’s problem. “If you look at the esports organizations in North America, they’re all either bankrupt or going bankrupt, and I mean all of them,” he said.
“Some organizations will try to cover up and say, ‘Hey, we’re still okay, we look good, everything’s fine here.’ We are losing a lot of money.Many people are being laid off.No organization is safe at the moment.”
Wang said companies are no longer interested in sponsoring esports teams because no exposure deals have materialized. “Brands are afraid of esports because they invested millions of dollars in esports and didn’t get big returns,” he said.
Wang joked that he’ll rely on Patreon and quality merchandise to dig himself into the $1 million hole the team is currently in, but he may make a video in the next few months about spending $2 million. saying.
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Ryan Dinsdale is a freelance reporter for IGN. He will talk about witchers all day long.