Esports are profitable?

Sebastian Lalic
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Illustration by ANDYJ. Source: Wikimedia Commons

After the financial turmoil that the likes of Heroic and FaZe have been in, we thought it was impossible to make money in Esports. Turns out, competence goes a long way.

At least we think that’s the only logical explanation for how ENCE has managed to make €1 million in profit. All whilst the teams around them seem to be hellbent on losing money. Well okay, there’s more to it.

Their income comes from two primary sources:

  • The first is their stickers, which, according to their CEO bring in a seven-figure income.
  • The second is their share of ESL’s Louvre agreement that give them a cut of revenues from EPL and Pro Tour.

But that doesn’t tell the full story, after all, most big organisations have the same streams of income. The real secret lies in the fact they don’t take outside investments.

The moment someone expects a return, the way you run your company changes. Instead of long-term decisions, short-term gains seem very appealing. This is why most Tier 1 juggernauts pick up the biggest name available to them. It might be a cost, but the quick surge of value is their main goal. Meanwhile, ENCE does actual scouting to find gems around the scene. They have the stature of a big organisation, without investor liability.

This is why ENCE can sell a player like Spinx for good money, then, turn around and sign the next talented player that their scouts have found. Or more accurately, the new Israeli star on Endpoint.

If you’re curious about how this process works, good news! You can witness it firsthand, right now. Unfortunately, much to Dycha’s surprise who has seemingly been removed from the roster.

To be fair, we were just as surprised as him.

He hasn't been a poor player and it’d be harsh to blame any recent failures on him. Sometimes there are just internal conflicts, the roles don’t quite click, or both. Plus, if you’re ENCE you have to be confident you can find another up-and-coming tier 2 star to rocket the team into top performance. Tier 2 teams hide your contracts.

If this change turns out to be true, ENCE currently consists of:

  • 🇩🇰 Snappi
  • 🇮🇱 NertZ
  • 🇲🇪 Maden
  • 🇪🇸 SunPayus
May 29, 2023

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