Saturday December 9, 2023

Esports Valuations Slow Despite Video Game Surge

Noah K. Murray-USA TODAY Sports
Copy Link
Link Copied
Link Copied

Video games exploded during the pandemic, but most esports organizations didn’t reap the benefits. 

Following a 54% rise in average value in 2019, growth of the top ten organizations stayed even this year, at an average valuation of $240 million, according to Forbes.

Most Valuable Esports Organizations

  1. TSM — $410 million, up 3% year over year
  2. Cloud 9 — $350 million, down 13%
  3. Team Liquid — $310 million, down 3%
  4. FaZe Clan — $305 million, up 27%
  5. 100 Thieves — $190 million, up 19%

Though some organizations saw growth, the pandemic has fostered overall stagnation. Some of last year’s tournaments were played in front of over 40,000 in-person spectators and revenue was expected to jump 16% to $1.1 billion this year.

Instead, revenue dropped by $150 million as COVID-19 limited events. With tournaments constrained, merchandise, media rights and sponsorship income all but dried up.

Previous projections suggested esports organizations could surpass NFL teams in value as investors — from venture capitalists to celebrities and athletes — dumped money into the hype. 

With more than $4.8 billion invested into the industry over the past five years, VC firms are putting pressure on esports endeavors to make money.

Some esports organizations are looking beyond tournaments and leagues for revenue. FaZe Clan and 100 Thieves, for example, already make 20% or less from competitive play, relying primarily on original content and influencer power.

Copy Link
Link Copied
Link Copied

What to Read


Microsoft Finalizes $69B Acquisition of Activision Blizzard

The company beat numerous antitrust concerns to get the deal done.
Rory McIlroy reacts to a shot at the 17th hole during the first round of the RBC Canadian Open golf tournament.

PGA Tour-Saudi Deal May Miss Deadline As Obstacles Grow

A Dec. 31 deadline has been set for a definitive agreement to be reached.
podcast thumbnail mobile
Front Office Sports Today

Golf World in Chaos After Jon Rahm Joins LIV


Featured Today

The College Football Playoff is considering rotating TV networks for the national championship game.

CFP Considers Super Bowl-Like Rotation For National Championship Game

Multiple networks could share rights to the championship game, sources told FOS.
Brett Favre
November 27, 2023

Favre Welfare Case Hold-Up? “AG’s Office Has Not Expressed Interest In Pursuing”

The DOJ interviewed Brett Favre in early 2020.
The future of the Pac-12 rests on a court decision.
November 24, 2023

The Pac-12 Plays Its Final Regular-Season Game. Then A Court Decides Its Fate.

The conference’s future rests with a court decision.
Lane Kiffin
November 9, 2023

Ole Miss, Lane Kiffin Lawyers Argue for Dismissal of Player Lawsuit

FOS obtained audio of Lane Kiffin’s interaction with the player behind lawsuit.


Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Multiple Locations
Multiple Locations
Creative Artists Agency
Multiple Locations

PENN Entertainment’s High-Stakes Gamble with ESPN Bet Kicks Off on Tuesday

After his Barstool failure, PENN CEO Jay Snowden has plenty riding on a deal with ESPN.
A judge denied the FTC’’s injunction request to block Microsoft’s deal.
July 11, 2023

Microsoft Beats FTC to Move Forward With Activision Blizzard Takeover

A judge denied the FTC’’s injunction request to block Microsoft’s deal.
The U.K. regulator is Microsoft's last major hurdle to pass.
August 22, 2023

U.K. Reconsiders Activision Takeover Amid Revised Microsoft Offer

Microsoft’s new proposal grants cloud streaming rights to Ubisoft.

NHL’s Chris Foster on Amplifying Content Distribution With Automation

Learn how the NHL is using WSC Sports to increase fan engagement.
The FTC is filing an injunction to block Microsoft's deal.
June 12, 2023

FTC Makes Another Move to Block Microsoft’s Activision Blizzard Takeover

Microsoft’s $69B takeover faces scrutiny in the U.S and U.K.
Goals from the Stanley Cup Final are being shown as 3D videos on Roblox.
June 7, 2023

NHL Uses Roblox to Recreate Stanley Cup Final Goals in 3D

The Roblox activation leverages the NHL’s puck and player tracking system.
Nike's .Swoosh NFTs will integrate with future games from EA Sports.
June 2, 2023

Nike NFTs to Appear in EA Sports Video Games

Nike launched its .Swoosh NFT marketplace last year.
FaZe Clan went public last year at a $725M valuation.
May 22, 2023

FaZe Clan Lays Off 40% of Staff Amid Esports’ Economic Woes

FaZe Clan went public last year at a $725M valuation.