Cloud9 has shown it is losing millions of dollars each year with it’s CS:GO roster.
Dan Fiden disclosed how expensive it is to retain a team in CS:GO in an interview with DBLTAP. He claims that Cloud9 spends more than $1 million annually on its CS division, but assumes this is the case for any top-tier company in the nation.
“But be sure, Cloud9 loses from our CS each annual amount of between $1M and $2M, and any of the top 20 CS teams would be challenged to show me that they are not losing the same amount.” Meanwhile, he revealed, “Cloud9 makes the Rainbow Six more money than us do at the CS right now.”
Instead of joining the new ‘B Site League’ the Cloud 9 roster is not expected to appear in the ESL Pro League.
The cause for this major loss is obviously the variance in the cost of running an association squad, including player salaries, support personnel and accommodation, and of playing in CS ligas and tournaments. In the meantime, the complexity of a game will make even attracting sponsorships for counter-Strike challenging.
“Last year we got over $70 K from ESL, which is the highest revenue league for our CS roster. In a single month, we pay over $70 K on CS. We have offers from our clients to be removed from CS for sponsorship and continue to accept them since the material is edgy. ‘
CSGO has traditionally been least controlled by players for the biggest sports titles. The brands of the Legends, Overwatch and Call of Duty leagues, including League of Legends, are now all going into franchised league run by their owners.
While many audience members have praised the hands-off and open circuits, the stability and financial benefits it provides to the league and the teams involved are one of the main advantages of franchising.
Although CS: GO will not have developer owned franchise yet, major tournament organisers will step in this direction in the coming year. All of these are apparently pushing forward a stronger squad effort in lieu of guaranteed spot and sales share by ESL Pro League, the new BLAST Premier league, and the current’ B-site Tournament’ by FACEIT. The B Site League is currently committed to Cloud9.