How Do Esports Teams Make Money? | MoistCr1tikal

[00:00] oh yeah we haven't talked about phase

[00:03] up

[00:10] so this is interesting I'm sure all of

[00:12] you know FaZe went public and initially

[00:15] their stock was doing pretty well

[00:18] it was Trading

[00:20] you know nicely for them

[00:24] and then it wasn't and now it's trading

[00:28] so poorly that they're at risk of

[00:30] getting delisted

[00:35] so

[00:37] phase not super up at the moment

[00:40] let's see tier one Chris and the

[00:42] resubmicro and will

[00:44] I don't know exactly what the reason is

[00:48] I haven't looked too deep into it I'm

[00:50] not exactly sure what led to it

[00:53] but uh it's not looking good

[01:01] they spend money but don't make money

[01:04] that's the majority of Esports orgs

[01:06] though the vast majority of Esports orgs

[01:09] I don't know how many times I've talked

[01:11] about it now but Esports does not

[01:12] generate money

[01:14] very very rarely and usually if an

[01:15] Esports org generates money it's because

[01:17] of merch voice crack merch and [ __ ] not

[01:19] the actual Esports itself and I'll tell

[01:21] you one thing that's generating zero

[01:22] dollars for phase is Snoop Dogg

[01:25] I don't know why the [ __ ] they even

[01:27] signed Snoop Dogg he has taken one

[01:29] picture with a phase chain and done

[01:31] nothing else has he even appeared in a

[01:33] single phase post

[01:39] like it just seems like they spend money

[01:41] on things that turn nothing for them

[01:49] can FaZe be bought out I read something

[01:52] very interesting and I don't know how

[01:54] accurate it is I it was made as a [ __ ]

[01:57] post but it seems almost feasible if you

[02:00] got a big enough group together and you

[02:03] bought the phase dip and I'm talking

[02:04] like I think it was like 110 million or

[02:07] something

[02:08] I I don't recall the number but if you

[02:10] got a big enough group of your Reddit

[02:12] Pals together and you all put in 110 mil

[02:14] you could actually just kind of take

[02:16] over phase and be the majority

[02:17] shareholder

[02:20] so that probably wouldn't be good though

[02:24] it couldn't be worse than where phase is

[02:25] at right now I guess

[02:30] moist Esports hostile takeover win yeah

[02:34] this is going to be a shock we don't

[02:35] have 110 million to play with plus I

[02:37] don't think there'd be any reason to own

[02:39] phase right now

[02:42] you don't really get anything clearly

[02:44] but I mean like you also just don't get

[02:46] a whole lot in general

[02:49] they have a lot of teams the teams are

[02:52] good too but outside of that you just

[02:55] take on a ton of debt

[03:06] the market Cap's 50 the market cap 50

[03:09] mil now

[03:10] when I was reading about it was like a

[03:11] hundred I didn't even look at them oh

[03:13] you're right wow I didn't even look at

[03:14] it

[03:22] it would be cheaper to buy them instead

[03:23] of buying into the Cod Championship you

[03:26] mean the CDL

[03:28] then uh it'd still be more expensive to

[03:30] buy All Phase but not by much it's like

[03:32] 20 mil to get into the CDL scam

[03:36] I think the bits Rin and swavy

[03:40] oh Heat

[03:42] Dwyane Wade used to be one of my

[03:44] favorite players

[03:48] I saw that video swaby I didn't I didn't

[03:50] know he was being charged for it though

[04:06] what goes into deciding to sign a player

[04:08] well the only time you're ever signing

[04:10] an individual player is in like the fgc

[04:11] and clearly what goes into that is is

[04:13] this player capable of winning

[04:14] championships if the answer is yes then

[04:16] we strongly consider it

[04:18] like right now I really want to get us

[04:20] into Street Fighter

[04:22] because I've been really getting into

[04:23] watching Street Fighter since six is

[04:25] around the corner so I went back and

[04:26] started watching some of five

[04:27] tournaments I was even watching um salt

[04:29] mine today

[04:30] so I've been getting kind of hype about

[04:32] Street Fighter So eventually we'll sign

[04:34] a street fighter player

[04:35] and then that we're just looking at who

[04:38] is the best who is hype who can win

[04:40] everything

[04:42] but usually it's teams and you look at

[04:44] how much does this team cost

[04:47] is this team capable of winning

[04:49] is this scene worth being in

[04:53] it's usually pretty simple but always

[04:55] the common denominator is is the team

[04:58] good are the players good

[05:05] if you take all the teams in phaser in

[05:08] would it be below 50 mil

[05:10] if moist Esports just had a presence and

[05:13] every game phases and would it be below

[05:14] 50 mil yeah absolutely phase has a I'll

[05:18] tell you right now phases Esports teams

[05:20] are the least valuable thing they have

[05:22] under their brand

[05:23] you just lose money on the Esports teams

[05:26] what phase has that has value for a lot

[05:28] of the investors and the company as a

[05:30] whole is their creators that are driving

[05:32] merch sales they're driving event ticket

[05:34] sales that's where their movers are

[05:37] investors and [ __ ] could give a [ __ ]

[05:39] less about them having a good CS go team

[05:41] or having one of the best Smash Brothers

[05:43] players with Spargo they don't give a

[05:44] [ __ ] they only care about the creators

[05:47] under their belt and what they can do to

[05:48] move that needle

[05:50] the product they can pedal and push

[06:02] is Joey Fury not with an org right now

[06:04] I'm pretty I thought I saw him sign with

[06:06] an org pretty recently Joey Joey Fury

[06:08] used to come by and win our Tekken

[06:10] tournaments that I'd host on stream I

[06:12] like Joey

[06:13] thanks for Tiberius and Mars and chronix

[06:17] or Kron

[06:22] Theresa rum

[06:31] you gonna get are you getting into the

[06:33] new Tekken oh God yeah I'm super excited

[06:35] for Tekken hate Street Fighter 6 and

[06:36] Tekken eight I am super hyped for

[06:45] is there a possibility moisty Sports

[06:46] gonna release some shares what us taking

[06:49] it public absolutely not what what in

[06:52] the [ __ ] would that do for us

[07:02] you can juice the stock

[07:05] yeah that sounds that sounds good yeah

[07:08] I'm sure that would work cool

[07:16] what was faze's plan with going public I

[07:19] gotta be honest with you I have no

[07:21] [ __ ] clue I was surprised that this

[07:23] ever did well at any point I thought for

[07:25] sure them going public would insta crash

[07:27] and burn but it was doing very well for

[07:30] a good chunk of time all the way up

[07:32] until it wasn't

[07:36] going public gives you a lot of money so

[07:38] basically cashing out if you remember

[07:39] icos from crypto basically that

[07:42] I guess to a certain extent

[07:46] but I just I don't know I feel like they

[07:48] could have cashed out in a different way

[07:50] though maybe not as big a way and I'm

[07:53] not knowledgeable enough on exactly

[07:54] what's going on with their financials so

[07:56] I can't say for certain

[07:58] it just seems like an interesting idea

[08:00] to do that if the goal truly was just

[08:02] cash out quickly offset some of the cost

[08:09] you ever started Valor CS go team

[08:12] oh we want to

[08:15] we've got we've got some cool news

[08:17] coming around the corner we've got a lot

[08:19] of cool [ __ ] cooked up

[08:21] we got Ludwig on board now and we've got

[08:23] some big plans on the horizon so just

[08:25] stay tuned

[08:28] why are Esports teams so expensive

[08:30] that's a question I get asked a lot and

[08:31] I'm always surprised people don't know

[08:34] why they're expensive even from just a

[08:36] salary perspective that's a ton of money

[08:38] take a team you know let's take rocket

[08:40] League rocket League you're paying four

[08:41] people salaries three players and a

[08:43] coach and sometimes a manager if your

[08:45] team wants a manager has a manager

[08:47] those are monthly payments and they're

[08:50] not cheap payments far from it

[08:52] and now go to something like CS go

[08:55] or hey we'll do something even more easy

[08:58] to understand we'll do valorant because

[08:59] that one gets talked about so much with

[09:00] its money you take a validate player at

[09:03] the top level some of them are making

[09:04] 20K a month and that's like a pretty

[09:07] high level valid player that's one

[09:08] player you have to feel the whole team

[09:10] plus a coach so multiply that by five

[09:13] six you're doing that every month

[09:17] that's one team

[09:19] and then you have to pay their travel

[09:20] for the big events

[09:22] so you have to pay their travel on top

[09:24] of that for all those people on top of

[09:26] those salaries for one event

[09:28] while you're paying these a month

[09:32] like it adds up super quick with just

[09:34] salaries and travel alone

[09:44] 20K sounds High well that's the value of

[09:47] a valorant right now man valorant

[09:49] players at a top level are making a ton

[09:51] of money I would imagine the ones that

[09:53] are also creators make far more than 20K

[09:55] a month off just their salaries from

[09:56] their orgs if you take a top level valid

[09:59] player who is also a content creator

[10:00] their value is even higher they're

[10:02] probably getting paid somewhere in that

[10:04] 30 40K ballpark

[10:07] I would I'm that I'm spitballing on 20K

[10:10] I do know for some of the top valorant

[10:12] players that aren't content creators but

[10:14] I imagine the ones that also do double

[10:15] as like streamers and [ __ ] make more

[10:18] from their org

[10:22] and that's just one player out of that

[10:24] team

[10:27] so it's very very very expensive

[10:32] I think it's a tier one donut and a bit

[10:34] snirt

[10:36] yeah of course nert

[10:45] 20K a year 20K a month

[10:47] brother a month I liked how you

[10:50] immediately went to a year because of

[10:51] how high that number is

[10:53] a month

[10:58] is there contracts like in normal Sports

[11:00] of course there is

[11:04] why are they why are salaries how they

[11:06] play video games

[11:08] why are athletes salaries high they play

[11:10] games they play sports

[11:13] because this the industry is Big then

[11:16] they know they're worth

[11:17] so example we'll stick with valorent

[11:19] just because I think it's an easy one

[11:20] Valor viewership your Org gets seen by a

[11:23] ton of people your Org gets fans those

[11:24] fans by your merch you're hoping to make

[11:26] money back on the team your team wins

[11:28] the championship there's a monetary

[11:29] prize on that millions of dollars you

[11:31] take a percentage of that winning so

[11:33] you're making money

[11:35] you're investing in the team you're

[11:37] investing in a team's potential and

[11:38] investing in potential fans that'll

[11:40] purchase your [ __ ]

[11:43] now that model works

[11:45] poorly for every Esports org that's why

[11:48] most of them just don't make money net

[11:50] loss for all of them

[11:52] but that's how it goes

[11:55] moist Esports takes zero percent of

[11:57] winnings so we don't even have that

[11:59] Avenue when we won the rocket League

[12:00] major that was a 90k prize for us that

[12:03] all went to the players so we don't see

[12:05] any of that

[12:07] so our strategy is make fun content so

[12:10] the watch parties for example

[12:14] that kind of thing

[12:16] and through the watch parties with like

[12:17] viewership and then we also have a

[12:20] sponsor with Opera GX that puts some

[12:23] money back in the investment

[12:30] at the end of the day content

[12:37] thanks it's Jim wool

[12:40] don't know about that Jim thanks a bit's

[12:42] Peyton

[12:47] and merch as well yeah our merch goes so

[12:50] [ __ ] hard

[12:51] I still think that track suit is one of

[12:53] the best goddamn things ever made

[12:58] that's a w but how do you stay afloat

[13:00] financially

[13:01] uh you can if you do X or um

[13:04] there's an exclamation point subs or

[13:06] subscribers I don't know

[13:08] take that number

[13:10] and what is it multiply by 2.5 3.5

[13:14] whatever

[13:15] that money goes into moist Esports every

[13:18] month

[13:20] so I put the whole twitch contract like

[13:23] everything I make on Twitch in the moist

[13:24] Esports

[13:29] easy resubmed metal crew

[13:33] how do you make money then I don't it's

[13:35] the content

[13:39] I'm an investor then I made a joke about

[13:42] that a while ago but it's not super

[13:43] far-fetched I guess really appreciate

[13:45] the generosity dong thank you man

[13:49] thanks for the fat drop dung

[13:55] nice the bit's broken and it gives up

[13:57] Josh and the reason precise

[14:01] negative Walker Subs wouldn't be enough

[14:04] to fund a valo team if they all made

[14:05] 240k a year right which is why we're not

[14:08] invalorate yet that's right now just out

[14:10] of our ballpark

[14:13] is Theresa mores

[14:16] what makes some games more expensive the

[14:19] popularity of the game the more popular

[14:21] the game the more expensive

[14:24] League of Legends is kind of the gold

[14:26] standard there league has a buy-in to be

[14:29] there

[14:30] and it has huge contracts for their

[14:33] players because it is the Premier esport

[14:36] or at least it was the LCS is dying it

[14:39] the LCS is having a big big big big fall

[14:41] off

[14:48] League should at League should add it to

[14:51] PS5 and Xbox

[14:54] it won't be as good but it'll bring it

[14:56] to a whole new audience

[14:59] you're saying bring League of Legends to

[15:01] PS5 in Xbox

[15:05] I mean [ __ ] it I mean why not I guess

[15:07] but I can't see that being like a great

[15:09] strategy if I'm being honest with you

[15:13] if they have like teams that aren't

[15:15] doing anything sure

[15:19] makes the resub school

[15:23] they are with wild Rift are they really

[15:34] is wild Rift coming to the PS5

[15:37] League of Legends wild Rift isn't coming

[15:39] to consoles or South Asia in 2022 that's

[15:42] the latest I've seen on that that's the

[15:44] most recent article

[15:48] should I invest in Phase it's so low

[15:50] it's got to go up at some point bro I'm

[15:52] not I'm like the last guy you should ask

[15:54] for investment advice I have no [ __ ]

[15:56] glue man you do what you want

[15:58] research it yourself make an educated

[16:00] decision on it don't ask me

[16:08] on the website it says it's coming to

[16:10] mobile and console okay maybe that's

[16:12] outdated info

[16:19] we got a game from GameStop must be why

[16:21] their stock is up

[16:23] one used game sale just drove GameStop

[16:25] stock price up five cents

[16:30] you're a hero

[16:33] [Music]