Top Esports Teams Consider Salary Caps Amidst Player Poaching Concerns
- ByStartupStory | January 8, 2024
Several top esports teams, including S8UL, Revenant Esports, GodLike Esports, Enigma Gaming, and Global Esports, are contemplating capping player salaries at Rs 2.5 lakh per month. This decision comes in the wake of concerns about player poaching, which is reportedly disrupting team dynamics and performance at tournaments.
The move follows a meeting of 15 esports organization owners last month, where the impact of high salary packages on the industry’s economics was discussed. According to one owner, the practice of poaching players is disturbing the business’s economics. He highlighted the substantial investment made by organizations in gaming boot camps, player training, team strategy development, branding, travel expenses, nutrition, and mental well-being. These costs can range from 15-20 lakh per month, depending on the number of athletes involved. The departure of even one player can significantly impact the team’s strategy and morale.
Comparing the situation to cricket, another individual emphasized the importance of team spirit in esports, likening a player’s departure to the sudden exit of a key player from the Indian cricket team before a crucial match. This sentiment underscores the significance of team dynamics in esports, where players rely heavily on each other for support and motivation.
On the other hand, players argue that capping salaries is unfair, considering the growing popularity of esports. They believe that organizations capitalize on their popularity to offer higher packages and that capping salaries limits their worth, regardless of their performance. Some players have taken to social media to voice their grievances about organizations denying them a fair share of prize money and brand deals.
In response, a top egamer suggested that instead of limiting payments, esports organizations should focus on securing high-value brand deals and creating innovative business opportunities. They highlighted the rapid growth of esports in India, driven by popular games such as Battlegrounds Mobile India (BGMI), Valorant, Counter-Strike, Dota, and Pokemon Unite, which attract millions of participants and viewers.
Esports championships, once primarily held online, have evolved into offline LAN events held in stadiums, mirroring physical sports. In 2023, these tournaments disbursed an estimated cumulative prize money of Rs 30-35 crore, marking a significant milestone in India’s esports history.
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