New monetization of Esports teams
Former Managing Director of Cybersport.com Michael "Torte De Lini" Cohen made a post on his website about the business model of the Omega League taking place right now and of many future tournaments if the current one will be successful.
Unlike the usual Dota 2 tournament, where all the profits went to the organizer, here, some of the top teams become partners. They participate in revenue sharing from media rights, betting agreements, sponsorship, advertising, and more. Specifically, there are 8 beneficiaries in the Omega League: ??Natus Vincere, ??Virtus Pro, ??Team Secret, ??Nigma, ??Alliance, ??OG, ??Evil Geniuses и ??Team Liquid.
According to him, the organizers of WePlay and Epic Esports earn less than 10% of all profits.
The initiative for this business model came from teams. In the spring of this year, all the leading tournament operators received a proposal to host a tournament to replace postponed The International. The agreement included the exclusive participation of the teams in exchange for revenue share. WePlay and Epic Esports agreed to these terms.
This business model aims to solve the chaotic nature of the Dota 2 ecosystem and increase the monetization of teams. After all, many of the Dota 2 teams are working at a loss now. Soon It will be possible to assess the success of such a model.