In a podcast hosted by Orangutan Esports called Mic On Kar, Indian Esports organization owners Yash Bhanushali of Orangutan, Dr Rushindra Sinha of Global Esports, Animesh “Thug” Agarwal of S8UL, and Rohit Jagasia of Revenant Esports discussed the financial side of Esports which audiences don't usually get to see. Even though Indian Esports is growing at a staggering rate, all of them agree that they're not yet profitable.
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8Bit Thug Sheds Light On Working Of An Esports Organisation
During the podcast, Thug and Rushindra Sinha raised interesting points about how an Esports organization earns money. When the panel was asked about how an esports organization makes money, Thug and the other panelists had one response: "They don't." Thug further explained to them what the situation currently looks like:
I have said multiple times on record that S8UL is not profitable. It is the talent business that I have built that is profitable.
He further explains that though there are plenty of people who are willing to pay them money as sponsors, not a lot of them are willing to give them the amount they value S8UL at. He then adds that he doesn't want to undervalue the brand he has built and their esports side of things.
I can wait five years but I want full value for money for the amount that Goldy, Mortal ,and I have invested. So it's either that or I undercut my prices and take little amounts from everywhere and make it work, but I don’t want to do that.
Thug also sheds light on the fact that due to their other ventures like their merchandise, they're not in grave losses, but are still in a net negative. He says that they only pitch the esports side of their work to the brands and ask for money just for that vertical, but no one has ever agreed to give the amount that they asked for.
When I have spoken to brands and pitched them an esports team, I have asked for the money that I want. It's not like they don’t have the money, they will readily give a small amount but are not willing to give a big amount. We are still burning cash but not as much and I would say that we still have control over it”.