Connect with us
Prague Gaming & TECH Summit 2025 (25-26 March)

eSports

Odgers Berndtson: Annual income of esports top management can reach $170 000

Published

on

Reading Time: 4 minutes

 

Headhunters are often among the first to identify trends, thereby making them the people who come to find the best managers.

The esports market has also followed this trend. Since 2015, we have seen the formation of a new large-scale industry. Initially the clubs and teams looked like a group of niche enthusiasts without any built-up system, wishing to attract 1-2 professionals from the corporate world. Today the industry looks as a full-fledged ecosystem of the largest clubs, companies and holdings. Each of them has its own staff, corporate structure and Leadership Team. However, there is very little systematized information about the internal structure of cybersports, such as what the clubs have in common or what is the salary market like, although the transparency of an industry is one of the most important factors in its growth and development.

Odgers Berndtson has interviewed twenty top club managers around the world – from North America to Oceania, including Western Europe, Russia and the CIS countries. The results of this study will be useful for all market participants: clubs to compare themselves with competitors, investors who want to enter the esports market, professionals who want to work in the industry, and for fans who are interested in understanding what’s behind their favorite players.

Advertisement
European Gaming Congress 2024 (Warsaw, Poland)

Organisational structures

During interviews with representatives of esports clubs, we have identified 2 main management models (each of them can be subdivided into 2 subcategories):

The first model is a business structure with traditional key functions inside: Sales, Operations, HR, Finance, etc., which report to the CEO. These structures follow the classic organisational model from the corporate world. 81% of the clubs we surveyed have this type of organisational structure.

The remaining 19% of clubs have only two key managers – CEO (Chief Executive Officer) and COO (Chief Operating Officer), who share areas of responsibility among themselves. The most common configuration is when one manager develops such functions as Sales, Marketing and Gaming, and the another one is responsible for the back-office (accounting, finance, etc.). In 50 % of these companies the club outsources the functions of sales and marketing, and the rest have these functions (including sales and marketing) implemented internally.

Sports management

Advertisement
European Gaming Congress 2024 (Warsaw, Poland)

The main resource of the esports business are players, teams, and sports results. Nowadays, clubs use 2 main models of sports management. 57% of clubs have a Sports Director / Chief Gaming Officer who is responsible for team management and sports performance. In the remaining 43%, this function is linked with one of the top managers of the club (CEO / COO). The main factor in both approaches is the CEO / COO’s personal professional gaming experience.

Compensation packages

After we have gathered and systemized all data of compensation packages in the clubs, we saw a big difference in absolute values (up to 10 times). This is due to the different living standards in the regions where esports clubs are present. To present the relevant average earnings in key positions, we removed 10% of the minimum and maximum values.

Annual income:  

•           CEO – from $ 70,000 to $ 170,000 gross;

Advertisement
European Gaming Congress 2024 (Warsaw, Poland)

•           COO – from $ 50,000 to $ 160,000 $ gross;

•           CCO (Sales, Partnerships, Sponsorships) / CMO (Content, Marketing, PR) – from $ 50,000 to $ 150,000 gross;

•           HRD / CFO / CIO / Legal Director – from $ 40,000 to $ 120,000 gross.

Compensation packages insights

Over the past 1.5-2 years, the structure of compensation packages has changed towards a form similar to other industries – a fixed part and a bonus (the amount of which depends on the KPIs fulfillment). It is important to note that about 40% of top clubs stimulate their top team with long-term incentives (LTI).

Advertisement
European Gaming Congress 2024 (Warsaw, Poland)

The main KPIs for top management are operational: P&L performance, growth number of subscribers on social networks and active fans, views of matches / team content, users retention, and attraction of partners.

Most of Chief Gaming Officer and the CEO have sports results reflected in KPIs. This distinguishes esports managers from colleagues who manage clubs in traditional sports, where in most cases the entire team of top managers has an additional bonus from the team’s athletic performance.

Market trends

•           An esports club is no longer just a collection of players who play for themselves or their investor. It is a full-fledged business with media and commercial parts. Esports has become a valuable part of the entertainment market;

•           The staff ranges from 18 to 75 people. Only 21% of the organizations we had surveyed have more than 50 employees. Esports clubs, unlike traditional sports teams, still have compact structures;

Advertisement
European Gaming Congress 2024 (Warsaw, Poland)

•           Esports companies are becoming increasingly mature and open toward external markets. They hire people having no professional gaming experience, invite business consultants to tackle recruitment tasks, draft strategy and move the club forward;

•           Proper P&L management is a short- or mid-term task for 75% of top clubs;

•           Employment’s agreements with athletes have changed:

– KPIs for sports results now included

– employment contracts became long-term;

Advertisement
European Gaming Congress 2024 (Warsaw, Poland)

– the club’s share has increased in the prize money from tournaments.

About the study:

Odgers Berndtson is one of the largest international consulting companies with a focus on top executive search, assessment and development. Odgers Berndtson is the only executive search company with a dedicated Global Gaming Practice. The practice specialises on recruiting executive teams for the gaming and esports industries.
Authors: Leonid Koen, Andrey Salitov.
Continue Reading
Advertisement

eSports

Four Countries Shortlisted to Host GOTF 2027

Published

on

four-countries-shortlisted-to-host-gotf-2027
Reading Time: < 1 minute

 

Phygital International (PI), the exclusive rights holders and custodians of The Games of the Future (GOTF), announced that Brazil, Serbia, South Africa, and Uzbekistan are the shortlisted applicants to host GOTF 2027. The Games of the Future is the world’s leading phygital sports tournament, bringing together sports and esports athletes from around the world.

With the UAE set to host GOTF 2025 and Kazakhstan in 2026, the competition for the 2027 edition has drawn significant interest from nations eager to position themselves as leaders in the world of phygital sports.

Nis Hatt, CEO of Phygital International, said: “We received bids from right around the world which highlights the growing awareness and passion for phygital sports globally. We would like to thank all the nations who bid to host The Games of the Future 2027 and are pleased to announce that Brazil, Serbia, South Africa, and Uzbekistan have been selected as the nations shortlisted as potential hosts.”

Advertisement
European Gaming Congress 2024 (Warsaw, Poland)

Following further evaluations and detailed assessments of each finalist’s proposal, the final decision on the host country for GOTF 2027 will be announced in the summer of 2025.

The post Four Countries Shortlisted to Host GOTF 2027 appeared first on European Gaming Industry News.

Continue Reading

Asia

Valorant Added to Hero Esports Asian Champions League

Published

on

valorant-added-to-hero-esports-asian-champions-league
Reading Time: 2 minutes

 

The HERO ESPORTS Asian Champions League (ACL), Asia’s premier multi-title esports tournament hosted by Hero Esports, has officially announced the addition of VALORANT to its inaugural lineup.

Previously, ACL unveiled six game titles: Dota 2, Counter-Strike 2 (CS2), Honor of Kings, Teamfight Tactics, Delta Force, and Crossfire. With VALORANT joining the roster, the total number of games now stands at seven, with more titles expected to be announced soon.

Through continued collaboration with the Esports World Cup, ACL has revealed that the champions of the ACL CS2 and Honor of Kings Tournaments will secure direct entry to the Esports World Cup. Further collaborations on the remaining titles of the ACL are anticipated.

Advertisement
European Gaming Congress 2024 (Warsaw, Poland)

The ACL VALORANT Tournament will be the only international-level VALORANT tournament held in China during the first half of 2025, attracting top teams from overseas. The Final of the event will take place offline in Shanghai. The event will use world-class production and cutting-edge live broadcasting technology to enhance audience experience.

The ACL is set to take place in the first half of 2025, with the Finals of the ACL CS2 Tournament and Honor of Kings Tournament scheduled for May. The ACL will have a total prize pool of $2 million.

Jonny Wang, CEO of the Asian Champions League, said: “We are excited to announce the addition of VALORANT to the ACL. Our ambition is to make ACL into a truly comprehensive tournament, providing a larger stage for players and teams across various competitions while delivering more exciting content for our audience.”

Danny Tang, Co-Founder and CEO of Hero Esports, said: “We are pleased by the progress of the ACL and its ability to attract top teams and titles to compete across Asia. We look forward to the continued collaboration between Hero Esports, ACL and the Esports World Cup Foundation, which is testament to our shared ambition to shape and empower esports globally.”

The post Valorant Added to Hero Esports Asian Champions League appeared first on European Gaming Industry News.

Advertisement
European Gaming Congress 2024 (Warsaw, Poland)
Continue Reading

Asia

Esports World Cup Foundation Announces Strategic Partnership with Tencent

Published

on

esports-world-cup-foundation-announces-strategic-partnership-with-tencent
Reading Time: 2 minutes

 

Partnership to drive EWC’s expansion in China, leveraging Tencent E-sports’ networks and expertise to connect Chinese esports with EWC’s  global ecosystem

The Esports World Cup Foundation (EWCF) announced a partnership with Tencent, making Tencent E-sports the EWCF’s strategic partner in China to drive the expansion of the Esports World Cup’s presence in the region. This partnership marks a significant milestone in the EWCF’s purpose to unite global esports fans under one competitive umbrella and underscores its commitment to integrating the world’s most important and rapidly growing esports market into the Esports World Cup platform. The agreement was formalized at the Empower Esports Worldwide Series – The Esports Operation and Technology Session in Shenzhen, China.

The collaboration will establish a dedicated Development Team to enhance EWC’s visibility, engagement, and industry collaboration in China, while leveraging EWC’s and Tencent E-sports’ networks and expertise to connect Chinese esports with EWC’s global ecosystem. Tencent E-sports will provide marketing expertise, strategic consulting, and operational support to deliver diverse content and experiences.

Advertisement
European Gaming Congress 2024 (Warsaw, Poland)

“The Esports World Cup has created a global stage for competitive gaming, demonstrating its influence not only in China but across the world,” said Mars Hou, Vice President of Tencent Games and General Manager of Tencent E-sports. “Through this partnership, we are committed to elevating EWC’s presence in China and integrating our esports industry with the world’s largest competitive gaming event. We look forward to deepening our collaboration with EWCF to push esports forward on a global scale.”

“The Esports World Cup’s purpose is to create a global platform for esports and gaming fans worldwide, and investing in key growth markets for esports is a core pillar of our mission,” said Thamer Al Shuaibi, Chief of Staff at the Esports World Cup Foundation. “China plays a critical role in this vision, and Tencent’s leadership in gaming and esports positions it as an essential partner. By combining our expertise, we will continue to strengthen esports as an industry, providing new opportunities for Chinese players and Clubs, and bringing the best of the Esports World Cup to Chinese fans.”

Esports World Cup 2025 will once again unite gaming and esports communities in Riyadh, Saudi Arabia, for a global competition that will crown the next Esports World Cup Champion. The tournament’s unique cross-game format will reward Clubs and players competing for a life-changing prize pool in a mix of platforms and genres, bringing together esports’ best players, Clubs and games under one banner in the largest-ever celebration of esports.

The post Esports World Cup Foundation Announces Strategic Partnership with Tencent appeared first on European Gaming Industry News.

Advertisement
European Gaming Congress 2024 (Warsaw, Poland)
Continue Reading

Trending