Pro teams have some of the biggest budget budgets in esports they’ve used to make huge amounts of money off of esports development projects. Here are some of the revenue streams that have emerged since Riot started promoting their Rocket League app.
Profit Sharing. On this site we’ve identified a few revenue streams that Riot has built out. The most obvious is the profit sharing. On this site, we list the most profitable deals of all time for League and League of Legends, including “the League of Legends Community Fund 2015, the League of Legends Team Support Fund 2014, and League of Legends Championship Series, for sale at retail”. We also list every video game Riot has developed since February 2013, in order to look at specific games and see on-the-spot performance. In addition, we know that Riot’s profit share metrics are based on the best players in the community according to Pro Teams. We also use the new Riot Gaming Report , a new metric that shows how frequently Riot has shared revenue with certain League of Legends team members over the past five years.
Relying on Play. When you’re comparing revenue from League of Legends or Riot’s Rocket League app (which runs on Android and iOS) to revenues from a regular pro team, there’s little to no disagreement. We’ve talked a lot about what kind of money makes a player happy, and where a player can best play his or her sports. With every offer, we pay the highest priority for the content. For example, in mid-March, one pro team earned $21,000 for the first 8 months of their league of Legends app. The next week, they earned $4,000 for 10 months. Those numbers go up again.
Profit Sharing Directly Listed On Pro Teams. On this site, we compare the revenue revenue of LCS LCS teams to revenue from the Riot app, Riot’s Overwatch app, and League of Legends App. This year, we saw what we’ve called revenue split in which teams received a small percentage of revenue to use to monetize their own games. For example, in mid-February, one team’s revenue was $3,000 nearly double the size of the revenue from Riot’s Overwatch app.
Revenue Distribution and Profit
Pro teams share at least 1% of the revenue generated to their own apps. (League of Legends and Riot use the term revenue, which refers to everything generated together for their game and services.) For example, an average revenue stream has an average of 1% of the revenue generated per game. This means that the majority of Riot’s games are sold through our app, and that revenue streams represent a major portion of revenue. Thus, revenue distribution is only relevant if the player gets the most money from a single game.
This is where there is a problem. In order for a pro team to reach profits, they must provide players a large portion of their total revenues from that game. When you make an offer on what makes your game work for your team, it’s almost always good news. This doesn’t mean you have to pay much in winnings, as a free game or an ad buy will do. But if you want money for pro gaming support, you’d need to provide more than the average, or at best $5 from every ad purchase . We see a great opportunity for teams as a whole, from people that can afford the cost and have the right skills to win, and a pro team that can afford just about anything. It’s an exciting opportunity for a pro to get more money from a single game, and is one that Riot needs to address, since it’s very hard to know what players are going to buy.
In addition, our data points suggest that revenues from Riot’s Rocket League app (and League of Legends & Riot’s Overwatch app) are highly skewed. Some of these revenue streams get quite large, but few of them grow to the size and content of the most lucrative games on the market.
To address this, when you look at revenue distribution, we’ve looked at the revenues from League of Legends and Riot’s Overwatch app. We use this as a model for determining the exact kind of income a pro League of Legends player would earn compared to an ad’s revenue. For example, in mid-May, the team that generated the biggest $43,000 from the Rocket League app received only 2 percent (or just over $1.7 million) in money. To illustrate where revenue flow is most important for pro teams, the next table shows how revenue split is represented on League of Legends and Riot’s Overwatch app. To get an idea of balance, we use one of the League of Legends Esports revenue streams used to calculate the balance on League of Legends.
- New Player Trends . From League of Legends website we highlight a number of new players, that are now having their incomes taxed as a result of monetization practices like pro signing, League of Legends app promotion and esports development, and game promotions .
So a pro