The Crooked Economics of Esports

Visit https://NetSuite.com/ModernMBA to sign up for their one-of-a-kind flexible financing offer!

Esports sold itself as the sport of the future - a world where video game tournaments would surpass the NBA and NFL, where anyone could grind from amateur to superstar, where gaming would be a viable profession, and stadiums would be packed with thousands of fans. All this value in theory would be captured by new teams and leagues who could monetize these eyeballs through tickets, merchandise, and media rights - the same way that the NBA, NFL, and Premier League have each used viewership to rake in billions over decades.

There was so much hype that everyone expected the economics to solve itself over time. Brands jumped in to sponsor. Even the billionaire owners of traditional sports joined in, enticed by the prospect of owning the next Dallas Cowboys or Manchester United. With the media and Wall Street all heralding esports as the next big thing, this future seemed certain.

Fast forward to 2024 and esports has fallen apart. Many teams have shut down having run out of money or been sold for parts. Viewership has declined and questions have been raised on whether this audience is valuable when Twitch itself can’t turn a profit. Publishers have cut support and shuttered leagues. Many pros have exited esports, channeling their starpower into more sustainable streaming careers or leaving gaming behind entirely.

The fall of esports has never been covered by mainstream media. As a result, the industry remains rife with con artists, scammers, and shell companies who continue to run the scene with little scrutiny. The pump-and-dump has continued and the people running esports these days make even the most delusional Silicon Valley venture capitalists and founders look like saints and angels. In this episode, we’ll break down the fraudulent business of esports and analyze 8 different teams across NA and EU, 4 publishers, and 2 middlemen.

=============================
Support Modern MBA - we're 100% independent, self-funded, and committed to making business education free to all.
=============================
☕ Tip: https://buymeacoffee.com/modernmba
☕ Patreon:   / modernmba  
🤳🏻 TikTok:   / modernmba  
🤳🏻 Instagram:   / modern.mba  
🤳🏻 Reddit:   / modernmba