It’s easy to dismiss gaming as just a hobby, but somewhere along the way, fun turns into finance. The esports industry has evolved into a global industry worth billions of dollars, with some professional players earning well over ten million dollars annually. Today’s top esports teams aren’t just friends who enjoy playing video games together. They’re startups, many of which are venture-backed and brand-focused companies building an enterprise out of entertainment.
From the Basement to the Boardroom
A decade ago, an esport team might have had five friends splitting a fifty-dollar prize pool. Now, they operate as incorporated businesses with CEO’s, management teams and investors. Teams like T1 and 100 Thieves have the capacity to operate like tech startups as they are investor-funded and able to scale operations, hire talent, and expand internationally without extensive financial strain. 100 Thieves, for example, has raised over $60 million in venture capital, backed by investors like Drake and Scooter Braun. They have their headquarters in Los Angeles, looking more like a creative studio than the stereotypical basement set-up, complete with production studios, streaming stations, and sleek office spaces. While pitching to investors, esports teams don’t say, “we are good at video games, please give us money.” It’s rather, “we are building a brand worth millions for the next generation of consumers, you need us.” In many ways, that is exactly what a stereotypical startup does: identify a growing market, create a loyal fanbase, and monetize the following.
Most people see esports as entertainment, not a corporation. The players are the face of the industry, not the management teams who run the operations behind the scenes. Unlike traditional sports where deals and contracts are in the public eye, esports finances mostly operate behind the scenes because it’s embedded within digital platforms and online communities. However, just beneath the surface, it becomes crystal clear that every decision is driven by profit. Signing a player is not just about their skill, but rather how they fit within the brand, how large their existing fanbase is, and their potential not only as a gamer but as rather a public figure. The truth is, the entire industry thrives on marketing, talent management, and audience engagement, factors most fans rarely think about while immersed in the entertainment. So why don’t people associate esports with business? Because it was born out of hobbies and passions rather than traditional office jobs. Yet, that is exactly what makes esports such a powerful, growing industry: this relatability is what fuels it.
At its core, esports operate like a media startup. The business model involves multiple revenue streams, many of which are similar to traditional sports, and many not. Sponsorships are a huge source of income, where brands like Red Bull and Logitech pay millions just to appear on jerseys,
streams, and arena sidelines. Merchandise and apparel frequently sell out within minutes, further strengthening their brand loyalty. On the other hand, content creation is a totally new element that diverges from traditional sports. Teams produce YouTube videos, broadcast live on platforms like Twitch, and some even live together in a gaming house to generate constant, engaging content. All of this resemble what startups call “diversification”: instead of relying on tournament winnings and donations from fans— which are unpredictable, esports teams follow sustainable revenue models, just like any company would when trying to scale up.
Careers Beyond the Controller
Although esports is mainly associated with just the famous players like Faker and TenZ, most of the jobs in the industry are on the business side, and not the gaming side. Teams need to hire analysts, managers, content producers, PR coordinators, and many more personnel. Managing partnerships with large brands like Nike requires a team of marketing specialists, partnership directors, and many more, while scouting new talents involve analysts and recruiters. Event planners, accountants, developers, and technicians all play critical roles in the success of an esports organization. The choices are endless, especially for those interested in combining business, media and technology. Although the idea of entering the esports industry may seem far away, it is completely attainable, since the same skills that are involved in the corporate world are the ones that fuel this industry.
The esports industry generated over $1.5 billion in 2024, with audiences exceeding over 600 million worldwide, according to Demandsage. More importantly, this growth highlights modern business trends—toward digital and interactive entertainment. However, this industry is extremely volatile. Esports organizations may face high operational costs and uncertain revenue cycles since games lose popularity and audience tastes shift quickly. Yet this volatility is also what drives constant innovation, a defining trait shared by growing industries like technology, healthcare and media. Esports teams have shareholders, executives, and corporate boards. They have investors, manage corporate relations and employ hundreds of people. They are simply startups disguised by the entertainment they provide. Esports demonstrates that business can thrive in unexpected places, turning even hobbies into complex, evolving industries.