Note: You are reading an article from 2020.
The esports scene around the world is growing day by day. Currently, the esports and video gaming industry is bigger than the Music and Movie industries combined.
Esports games like League of Legends selling franchises for $10 million and Overwatch selling franchises for $20 million, many big names and companies have invested in esports over the last few years.
Esports organizations constantly buy and change their roster for multiple games to get as much profit as possible. After the franchising happened to esports, TSM is the only profitable organization. The profit is based on the overall performance of every Esports scene, not on a single game.
Leena Xu, the president of TSM, talked about TSM’s current state, replying on her Instagram to a fan who compared TSM to 100 Thieves.
She said, “Under my leadership, we’re rebuilding our league core with younger more long-term players, BB, Kobbe, got bio back.” About investing in multiple games and players, she also said, “Invested into Fortnite with myth, hamz, dae, added brand new games to our portfolio PUBG, Fortnite, Apex, R6, Rocket League. Added new business ventures, events, and influencers”. Finally, she added, “Btw TSM is the only profitable org.”
Many people might wonder how TSM is the most profitable organization despite failing to do well in LCS for the last two years. The answer is quite simple: while other big organizations like Team Liquid and Cloud9 spend millions on salaries to get their new team with no real monetization strategies and sold out to VCs, TSM played it very slowly. While having the same name recognition, TSM didn’t take nearly as much money as Team Liquid and C9. Liquid and C9 wanted to invest in other games, but those games were not big enough to make a profit out of it. But, in TL’s defense, the VC cash made it possible for them to get better players and establish a kind of legacy around the team that it is a winning team.
According to a Forbes article, Cloud9 was the most valuable Esports team in 2018 with over $300million+ value while TSM was $250million in value. Many Redditors argue that C9 lost their spot because of investing in the Overwatch league which cost them a minimum of $ 20 million to get the team and they did not make any profit out of it.
Although Leena Xu didn’t clear how much profit TSM generated, she did say TSM is the only team in Esports that is generating profits.
