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Like some already said the money is coming from the ads and the sponsors.
And for me it makes a huge difference in my way of seeing a company. If I have the choice between a product of Razer/Steelseries (or any other company that supports eSport) I would rather buy those than the products from any other company.
What I want to say is: "If you don't give a shit which mouse you have, make it a Razer" (or any other "eSport company"), because if you support them they will realise that it pays off to support eSport and that is what I want to achieve by supporting those companies.
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thanks for all the info guys cleard up a lot for me, I find the financial side of sc2 quite interesting.
On May 30 2011 01:03 Acritter wrote:
Money comes from two sources: pay-to-watch, as we see in the NASL and GSL, and advertising. Companies believe that it is worth their money to advertise to us, so they will continue to advertise. I for one can't think of any time that I've bought something I've seen advertised because of the advertisement, but I guess it's a good business strategy. I'm not complaining if it sponsors a sport I enjoy watching.
I've never seen an ad on Nasl before..who's sponsoring them?
On May 30 2011 00:57 Zeroes wrote:
I have bought monster energy drinks they are pretty good
There are also people like FXO boss who are just rich and wants to own a team.
who's the FXO boss?
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The vast, vast majority (probably around 90%) is from sponsors. It's changing a little bit with pay-per-view streaming, which is a good thing IMO, even though i'm broke-ass. Streaming is less vulnerable and more reliable. Good sponsors are a fine thing, but hard to come by.
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On May 30 2011 00:51 Rushingwolf wrote:
Starcraft 2 is not a bad game by all means, for me it lacks quite a large part of the fun factor of playing video games which was sacrificed for the game to be balanced and a competitive, but still i think the money thrown at it, is totally out of proportion.
Starcraft2 is a fun game, it could have been more fun without the colossus but anyways we have expansions coming so hopefully we'll have something as fun as BW.
Also there is never enougth money in esports. As long as SC2 Players are winning less than soccer player, we can throw more cash in.
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when you build it, they will come.
anything that has viewers, fans... can flourish like SC2 has. that's all that is needed. big companies will sponsor nearly anything as long as its legal, all just if you have the viewers.
for sponsors, its purely advertising.
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"Coaching:
People pay "pros" money for advice and coaching in starcraft 2 ranged from 10$/€ up to 300$ an hour."
What player is getting $300 an hour for coaching?
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On May 30 2011 01:39 fams wrote:
"Coaching:
People pay "pros" money for advice and coaching in starcraft 2 ranged from 10$/€ up to 300$ an hour."
What player is getting $300 an hour for coaching?
IdrA, but its because he doesn't want to coach. I think someone paid that much, or maybe it was down to $150/hr for his brother's birthday.
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idra, normally 150$ when he's got little time he doubles it^^
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On May 30 2011 01:05 Arcanewinds wrote:To be honest, you can say that about almost anything that is played competitively. As long as there are viewers, there is going to be a lot of money around it. Just look as football for a prime example ;D, do some players really deserve to be paid 1mil+ for every game? Maybe not, but do the advertisement companies and football teams feel that they are worth spending this much on? Looks like they do  .
A large part of the also money comes from TV rights. Paid for by the viewers - (and again advertisement companies). My point being that that not all of it is generated by sponsorships/advertisement, but semi-directly from people wanting watch the events.
Just to add that in there. Your point still holds.
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The big companies have been struggleling to hit a certain demography, in which Im a very typical example (from some business guy, who was on a podcast on honcast.com a while back)
White male age ~18 - ~35
Has (or is studying) a form of higher education, generally college or university.
Middleclass.
Doesnt own a tv or radio.
Finds entertainment almost exclusively online (games, forums, e-sports, etc).
This is not in anyway exclusiv, but a typical example. Apparently this is a big enough group, to actually get attention in the marketing departments from large companies.
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[B]
This is not in anyway exclusiv, but a typical example. Apparently this is a big enough group, to actually get attention in the marketing departments from large companies.
dooesnt need to be big ... just need to have much money in the future.
Obviously thats people in universities or on another form of higher education.
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As you said, you're a university student pinching pennies. There are many other people in a different financial place in their lives, and they are more than willing to spend what they're making on SC2 and its related goodies.
Before I bought my Razer Spectre I had never owned a piece of 'specialized' gaming equipment before. When I decided to get a new mouse I had so many options in front of me, and one] of the deciding factors ended up being the (then) recent sponsorship of TL by Razer. It's not like the only affect ads have on us is a subliminal, Orwellian presence conforming our desires to what the corporations want. It also factors in awareness and trust.
As far as "people with normal jobs go", I think it's more helpful to know how many fans have "normal jobs" versus "abnormal jobs." If people with "normal jobs" earn < 10€/hour but make up a small portion of SC2 fans, it makes more sense to think of people with "abnormal jobs" earning twice that or more.
Why do you feel the money thrown at SC2 is out of proportion? It has a huge fanbase who regularly spend money on expensive items such as computer hardware and accessories. It has passionate fans and players. It has a worldwide presence and the attention of many international sponsors. It is a game designed to be competitively balanced and engaging to spectators. Maybe it's 'out of proportion' in that not enough money is thrown at it. 
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On May 30 2011 01:51 Gaga wrote:Show nested quote +[B]
This is not in anyway exclusiv, but a typical example. Apparently this is a big enough group, to actually get attention in the marketing departments from large companies.
dooesnt need to be big ... just need to have much money in the future. Obviously thats people in universities or on another form of higher education.
Point is not so much about money, but the fact that its hard to reach students / other in mentioned group with commercials consistantly, but can be done relatively cheap through esports
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Money goes in; content comes out
You can't explain that.
I'm surprised anytime I see people bring up how people find sponsors and things like that. Companies pay thousands upon thousands of dollars for a tiny decal to be put on a racecar that probably wont be mentioned or hardly seen, where esports offers many companies direct access to the customers they're looking for in an environment they'll accept it.
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as glamorous as it sounds you can't just cast 2 days and do nothing. to get that kind of revenue you have to be very popular, and popularity can drop quickly if your not constantly practicing and doing well in events.
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Most people, myself included appreciate when companies feed the community money for advertisements. That isn't typical of most advertising. Usually people are annoyed when they are advertised to, but most of the SC community is just glad to receive support. I think that is a really attractive scenario for companies who are trying to hype their products.
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some of the money just comes from the players, Correct me if im wrong but technically the starcraft 2 competitors at MLG are essentially paying 5 grand. 70*272 is 19040 and there is only 14000 in prize money. which is roughly 18 dollars per person to compete that doesnt go back to the prize pool, kind of like a poker tournament except we dont list our entry fee as 52+18. Now i honestly dont know how sponsors factor into a tournament like this or how the code A spots and stuff are financed as well nor the spectator fees. But there is operating costs. It would be cool if someone had any further information on that.
But my point is that its community demand for an event like that, is essentially where the core of the money is coming from for an event like that.
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EPT
