Gen.G Esports CEO Expects Further Downsizing of Esports Clubs

Arnold Hur, CEO of Gen.G Esports, responded to fan comments during an esports discussion on Reddit. In particular, the functionary told his point of view on the current state of eSports and expressed his concerns about the prospects of some clubs.

I am extremely concerned. I said that the esports winter was coming, but even I didn't think it would be this cold. Now I have changed my forecast and I think that more than 30% of esports teams around the world will not succeed in the next two years.

With every major consumer brand slashing marketing spend, experiential esports marketing sponsorships risk being cut in the first place. If the publisher, the LCK, the teams, the players don't take risks now to fix the model, I fear the worst.

Most of our fans understand that everyone needs to take the side of sports entertainment and find new commercial opportunities if we want to stay relevant in larger regions.

According to Hur, the lack of sponsors greatly hinders the development of teams. He gave an example, according to which the average cost of the best players in the LCK is growing every year, and sponsorship contracts do not even close to cover their salaries.

Gur went on to explain that he believes leagues that rely on media and brand sponsorship will not survive and publishers are looking for other ways to generate revenue for their championships and teams. The CEO of Gen.G Esports also pointed to the current financial woes in the world as more brands cut costs and ditch marketing.

You don't have to look far for examples, as over the past few months, many well-known organizations have left esports or are about to file for bankruptcy. These include ORDER, eUnited, cowana Gaming and Team Finest.