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This thought crossed my mind recently. MLG orlando is coming up soon and i was thinking. How much of the proffits of MLG actually go to blizzard?
I mean it seems unfair. If blizzard wants to make their own tournament they can, but they automatically get part of the profits of every other tournament instead of that money going to the players?
A tournament needs to survive, so if blizzard is taking a cut of the profits that really is taking a cut of what the players should be getting. The tournament isnt going to risk itself when it comes to money, its going to just reduce what it gives to the players in order to survive as long as blizzard is taking a cut.
I know its blizzards game. But in this environment what would be stopping a competitor from maybe making a better or equal game and then letting any tournament use that game free of charge with the thought that game sales would be enough to fund the company and you wouldnt need to take a cut from all the tournaments.
Then esports would switch to that game because 1) its better, or maybe its equal and 2) the tournaments no longer need to pay a large part of their money to the company. This way tournaments for that game could keep more money for themselves and give more money to the players.
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I was under the impression that blizzard does not get a cut from tournaments. I could be wrong though.
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Any tournament with a prize pool over a certain amount is required to pay blizz a significant chunk of all add revenue.
*edit
Being unspecific as I don't know if it's public knowledge or not.
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yeah, if the prize pool is over 5k, Blizzard gets half (i think) of the ad revenue.
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Some facts and some sources would be nice. Otherwise this discussion seems pretty pointless!
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Switzerland2892 Posts
On October 12 2011 20:24 mnck wrote:
Some facts and some sources would be nice. Otherwise this discussion seems pretty pointless!
TB limits his tournaments prizepool to 5000 to don't have to pay a part of the tournament money to blizzard.
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On October 12 2011 20:25 pPingu wrote:Show nested quote +On October 12 2011 20:24 mnck wrote:
Some facts and some sources would be nice. Otherwise this discussion seems pretty pointless! TB limits his tournaments prizepool to 5000 to don't have to pay a part of the tournament money to blizzard.
yeah i think this is why MLG 1st place also gets 5000$
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On October 12 2011 20:27 yannick wrote:Show nested quote +On October 12 2011 20:25 pPingu wrote:On October 12 2011 20:24 mnck wrote:
Some facts and some sources would be nice. Otherwise this discussion seems pretty pointless! TB limits his tournaments prizepool to 5000 to don't have to pay a part of the tournament money to blizzard. yeah i think this is why MLG 1st place also gets 5000$
Total prize pool exceeds 5k though, so that cannot be the reason behind such a low prize pool (low for an event of such magnitude).
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I swear I read on the battlenet forums somewhere that they take half the prize pool for tourneys over $5k, but half the ad revenue makes a lot more sense lol.
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You have to purchase a license to run a tourney with a big ass prize pool (like the GSL). The contract for that license involves a decent chunk of change and some advertising I believe (the blizzard sign on the caster's desk at the GSL).
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On October 12 2011 20:27 yannick wrote:Show nested quote +On October 12 2011 20:25 pPingu wrote:On October 12 2011 20:24 mnck wrote:
Some facts and some sources would be nice. Otherwise this discussion seems pretty pointless! TB limits his tournaments prizepool to 5000 to don't have to pay a part of the tournament money to blizzard. yeah i think this is why MLG 1st place also gets 5000$
It's a matter of the total prizepool, not 1st place only.
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Hong Kong1758 Posts
Apparently 50% of Ad Revenue.
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Not sure how much it is in the states. Polish tournament organizers told me it's 10-15% from the entire prize pool IF it's over 5,000 USD.
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Well, as long as 'ad revenue' doesn't include 'partnership revenue' it seems fair. If it includes all income, it sounds high. Wonder what's included.
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Anyone who knows is under NDA so the exact details for what Blizzard gets won't be public knowledge. That said, SC2 tournaments are showing up all over so clearly it isn't impacting these leagues bad enough for them to not want to throw one.
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Could anyone point towards a source for the 50% cut? I've read it here now 4 times already without a source.. Before this turns into a "its 50%, look at the first page -.-"
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On October 12 2011 20:38 aebriol wrote:
Well, as long as 'ad revenue' doesn't include 'partnership revenue' it seems fair. If it includes all income, it sounds high. Wonder what's included.
It's Ad revenue.
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It is NOT always 50% of ad revenue. It is assessed in a case-by-case basis, 50% of ad revenue seems to be the standard for DreamHack and MLG I believe were the two that was stated for. It's certainly not for everything however.
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Lots of empty-looking BS in this thread. Anybody have a source?
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sigh thinking more and more about this makes me so sad at how blizzard is turning into this gigantic soulless corporation. i know not everything is soulless, but this one concept is just insane how they take the money that comes from other peoples hard work of creating and running a tournament
im high masters practicing alot cuz i wanna compete in tournamants for fun but i dunno how i feel about supporting such a concept... i just dont feel its fair for blizzard to take cuts from tournaments that they didnt create and build
i hope some company comes around and designs a super good esports game and doesnt charge money for tournaments to use it
or heck, blizzard with its billions of dollars should simply buy-out MLG and gomtv and every other tournament and simply run it themselves, and by that i mean blizzard would also be buying out all the employees of those other companies and having them run it for them.
I could actually support such a concept. If blizzard is running its own tournament, then sure, it gets all the money from it. I find that fair. And if blizzard buys out all the tournaments then it would make sense for them to get all the revenue from it. I see no problem with that.
But what blizzard is doing is taking cuts of tournament profits without buying out those tournaments... They are getting a cut of other peoples hard work... Sigh this concept i dont know if i can bring myself to support it
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EPT
