Kotaku asked sources with knowledge of esports teams’ revenue about what sort of deficits they run, but most seemed reluctant to answer. One, speaking anonymously, believes a lot of teams are operating on million-dollar yearly deficits. The CFO of Complexity Gaming, one of the only team representatives to respond to Kotaku’s inquiries, declined to say if the team is profitable. Although it’s early on in the industry’s new life as a sexy investment, there’s only so long organizations can remain unprofitable before they’re deemed duds.NewZoo analyst Jurre Pannekeet, who sees the revenues for 14 esports teams, says the majority of teams are operating at a loss, but declined to say how much on average, citing nondisclosure agreements. When pressed whether that majority was closer to 51 percent or 90 percent of teams operating at a loss, he said: “If you looked into it, it’s probably closer to 89 percent than 50 percent.”
― Elvis Telecom, Thursday, 12 January 2023 00:12 (one year ago) link