EPTOn March 13 2018 13:04 brinepumps wrote:
Now I'm curious, how do tournament organizers generate income so they can afford 5-stars hotels and amazing venues + profit margin?
Ticket selling and sponsors?
Now I'm curious, how do tournament organizers generate income so they can afford 5-stars hotels and amazing venues + profit margin?
Ticket selling and sponsors?
They dont. Third party organisations have limited ways to generate revenue.
Most events are part of the marketing budget of larger corporation / main sponsor. The main goal isn't profitability, but the attraction of the target audience.
Newer in the esports scene is venture capital money, where the losses in the current year are negligible, assuming huge profits in the future.
Then there is the dark side. Organisitions hold esports events and use its losses to hide money laundering or advertise a gambling/betting site with rigged odds that they own and control.
Now for WESG. Alibaba (roughly amazon of china) uses this event as a marketing tool and accepts its current losses.
Alibaba itself predicts these tournaments will continue operating at a loss for the next five years, but according to Alisports’ CEO Zhang Dazhong, this is a financial hit the company is willing to take, in order to win long-term.
esportsobserver.com
From 2016 Alibaba invests $150 million in esports.
esportsobserver.com
