Tuesday, July 27, 2021

UEFA Champions League prize money will be dwarfed by Esports prize money in 5 years

UEFA Champions League prize money will be dwarfed by Esports prize money in 5 years

With the coronavirus pandemic having a massive impact on a number of industries around the world, there is one industry which continues to grow, as the popularity and success of esports shows no signs of stopping.

The truth is that the esports industry was showing incredible growth before the pandemic.

But as people are forced to spend more time indoors, games like FIFA, Football Manager, Fortnite, Call of Duty: Warzone, Apex Legends, CS:GO and League of Legends have risen in popularity even further.

Added to this professional players and tournaments being streamed live on sites like Twitch, YouTube and Mixer are seeing viewership increase exponentially year on year.

And there’s real money to be made too.

Last year, 16-year-old Kyle “Bugha” Giersdorf won $3 million by earning first-place in the Solo category at the Fortnite World Cup, with the tournament having a total prize pool of $30 million.

But, a new study suggests that the prize money within esports is only going to get bigger over the next few years, and it could even be DOUBLE the UEFA Champions League prize money by 2025.

According to research by Casino.org, by 2025, the total prize money in esports is predicted to reach a whopping $2,496,872,884, which is double the current UEFA Champions League prize money.

In the report, it states that in the year 2000 the esports total prize pool was just $745,307, but by 2005 that figure increased to $4,304,527, shooting up further to $6,269,409 in 2010. But the biggest rise came between 2015 and 2019, with the total esports prize money increasing from $67,177,390 to $228,180,655.

So in Casino.org’s study, based on the prediction of a 49% year-on-year increase, the year 2020 should net a total of $330,089,176, a $111,808,521 increase from the year before. Using the same logic, the report predicts a figure of $2,496,872,884 in 2025.

So how do esports competitions compare to traditional sports competitions in terms of prize money?

Well, according to the report, in 2019 the esports prize pool is already ranked SIXTH, behind the UEFA Champions League and FIFA World Cup, as well as Formula 1.

However, esports competitions brought in more prize money in 2019 than competitions like Major League Basketball, the US Open, and Wimbledon.

Still think esports aren’t as big as traditional sports? Think again.

These figures were calculated by finding the Compound Annual Growth Rate of the last five years’ prize money, and then applied the rate to find out how much these tournaments are likely to pay out over the next five years.

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