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The Video Game industry has exploded in recent years, with no end to its immense growth in sight. Professional gaming careers have not only become a realistic path for many, but a lucrative one at that.
With so much money on the line, players want to feel confident that a contract is fair before locking themselves into an agreement that will influence their profession for the foreseeable future.
So, what is fair compensation for an Esports player?
Continue reading to learn about the most common compensation structures in professional gaming, and how individual players can ensure that they’re getting a reasonable offer.
Esports Compensation Basics
The Esports industry is a profitable one, growing more with each passing day. So, where does the money come from, and how does it flow to the professional players?
In most professional Esports leagues, sponsorships and revenue-sharing agreements with tournament organizers make up most of the team’s income. This is then distributed across various expenses related to team operations, such as travel and accommodations, marketing costs, and players’ salaries.
Beyond these revenue sources, Esports organizations may also earn income from sales of merchandise, ticket sales, broadcasting rights, and more, depending on the structure of the league and the team itself.
Outside of their base salary, players may receive periodic compensation from tournament winnings, signing bonuses, and participation in promotional events. In most cases, organizations will share tournament winnings with individual players, though not necessarily in equal proportions, so more experienced or higher-performing players may earn a larger percentage of winnings.
Though it is less common than receiving a salary, there are occasions where a player may be offered a one-time or “per game/tournament” payout, such as when an emergency player substitution is made, or a player is only partnering with an organization for a brief period of time. This isn’t the typical compensation structure for professional gamers, but it’s not unheard of in the industry.
Clearly, there are quite a few ways that Esports organizations, as well as individual players, can earn income from professional gaming. A strong understanding of compensation in the Video Game industry is essential to maximize your earnings as a pro player.
Factors That Affect Pay for Pro Gamers
As with many industries, there are plenty of factors in professional gaming that can have an impact on compensation structures.
Somewhat obviously, the player’s experience is going to have a significant influence on the salary or pay level that they are offered. The more experienced a player is, the more likely they are to have a high skill level and game IQ, which are greatly beneficial for the team. For this reason, players typically receive higher salary offers as they gain experience.
Similarly, a player’s statistics can affect their pay. If their performance improves or worsens from one contract to the next, the compensation package they are offered may reflect the change to some degree.
The needs and preferences of an individual player can also shape their pay. For example, a player who desires a position with a particular Esports organization may find that they need to sacrifice a higher salary elsewhere. Some players will value factors like location, team loyalty, and schedule flexibility more than others, so they become important considerations when looking at pay.
Another element that can affect the compensation offered to professional gamers is their social following. If a particular player has a large, devoted fanbase, an Esports team knows that this can increase their ticket sales, merchandise sales, and event revenues. This can make a player more valuable to the Esports organization, encouraging more lucrative offers.
Of course, there are additional elements at play when it comes to pay levels, such as the overall economy, or the popularity of a chosen Video Game, but these are some of the most influential factors that will vary from player to player. If you would find it helpful to compare your offer to those of other players, some teams make their compensation information publicly available, so you can see if yours stacks up!
What Payment Terms Should Appear in A Player’s Contract?
Receiving a player contract can be exciting and overwhelming at the same time, so how can you be sure that you’re getting a good deal?
Watch for the following information in your agreement to protect your best interests:
- Specific Salary/Payout Details: Whether you will be paid a set salary, or through another structure, be sure that specific dollar values or percentages are included in the player contract. Vague or confusing wording are big red flags that should make you think twice before signing.
– - Rights to Tournament Winnings: In many Esports organizations, tournament winnings are split between the team itself and individual players, though not necessarily in equal amounts. Be sure that your contract clearly states the percentage of tournament winnings you are entitled to in the event of a win.
– - Sponsorship Details: Sponsorships can be a huge moneymaker, so your contract should outline whether or not you are permitted to take on individual player sponsorships (in addition to team-level sponsorships) within the duration of the given contract. Additionally, if players will directly receive a portion of team-level sponsorship funds, your agreement should state the percentage that you will receive.
– - Payment Timelines: Your contract should specify an exact timeline and frequency in which you will receive your regular base pay, as well as details about when to expect compensation from secondary income sources, such as tournament winnings or sponsorship deals.
If any of the above details are missing from your player contract, be sure to bring them up and have amendments made as needed. You don’t want to end up locked into a contract that doesn’t serve your needs, or worse, reduces your earning capacity for the contract duration!
Conclusion
Your player contract is one of the most important considerations in your professional life. With a fair deal, your career in Esports could be a very fruitful one.
A Video Game Lawyer is an invaluable resource for professional Video Game players interested in maximizing their earnings. A careful review of your player contract is a great way to stay protected and empowered while building your esports career. Contact us today for a consultation if you have concerns about the player contract you’ve been offered, or if you need support negotiating an agreement that better suits your needs.