Some of the biggest esports organizations in India are reportedly planning to cap player salaries. This is likely to make sure that the organization retains financial stability while competing for the top positions.
Esports is known as one of the most expensive markets. In order to remain on top, organizations are hiring the best players and content creators. However, with the increase in the popularity of gaming across the sector, competition among organisations is also increasing to afford the best players.
Apart from salary, big teams are often together in a boot camp. Their living expenses and other aspects like travelling expenses, and providing devices also take a huge chunk out of the organization.
What is the reason?
Multiple reports of esports organisations approaching players after performing well in a few tournaments have surfaced. Players are offered more salaries and if they are not under contract, they usually choose to switch teams.
Revenue by esports organizations is usually earned through tournament prize money and brand sponsorships. There is a direct relationship between these two. If a team can’t perform well enough, they will not earn high prizes in the tournament. This might further lead to less sponsorship.
Furthermore, teams will then have to play against someone who was playing with them a few weeks ago. Switching team also affect the players as they need time to adjust to new players. This may lead to diminished performance in matches.
While it is currently only a rumour, something along these lines may get implemented in future. This will further help both parties. Since players may get the same offer, they will likely stay if the team have great synergy.
Esports Organizations will also not have to worry about others bidding higher for players. It will also help them in expanding in different avenues and provide more players an opportunity.
