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The profitability of Esports is in question for major leagues.

May 24 2023

The profitability of Esports is in question for major leagues.After years of anticipating Esports as the next big source of entertainment profit, major investors and league owners are finding it hard to maintain their budgets with dwindling viewership and ad deals. Some premiere Esports players are under seven-figure contracts, like other professional sports players, but their gaming is not reaping the benefits their employers had hoped for. Now, league owners like the Madison Square Garden Group, and teams like FaZe Clan, 100 Thieves, and Evil Geniuses are laying off employees, parting with players, and even attempting to sell their teams to cut losses. However, groups like Riot Games—who created League of Legends and run national tournaments—are trying to remain hopeful about the value of youth viewership and in-game advertising. YPulse’s Sports and Athletics report shows 42% of all young people agree that they are avid followers of Esports, but 49% agree they would follow Esports if it were broadcast on TV. (NYT)