Sources: Several NA VCT teams expected to downsize Valorant efforts in 2024
Aug 8, 2023
A few of the top competitors in North American Valorant are expected to reduce the spending on the teams next year, multiple sources told WIN.gg.
The downsizing comes amid a difficult period for esports organizations. Several teams are losing money, with salaries becoming exceedingly unsustainable.
As a result of the move, teams such as Cloud9 and 100 Thieves, which both participate in the VCT Americas league, are expected to reduce the salaries of players signed to the teams moving forward. The exact figure for both teams is unknown, however.
Some players will be paid around the minimum requirement for a salary, while organizations will continue to provide external necessities such as housing, for example.
Other organizations will likely follow suit, according to multiple sources.
A much-needed market correction is coming to North American Valorant
Prior to the partnered league and the resulting global economic downturn, players in North America were being signed to organizations for upwards of $20,000 to $30,000 per month with the belief that these teams could acquire significant sponsorships or other investments to justify the cost.
But Valorant just isn’t there yet. Several teams are feeling the impact of the “esports winter,” which has resulted in downsizing.
Layoffs have become commonplace in esports as well. Over the past year, there have been several esports organizations, such as The Guard, 100 Thieves, FaZe Clan, just to name a few, that have made cuts.
But developer Riot Games is committed to the long-term sustainability of Valorant esports. Next year, the company plans on incorporating esports cosmetics in which partnered teams will have access to additional revenue from microtransactions in Valorant via skin sales.
The success of revenue-sharing skin sales is vital to the sustainability of the esports teams involved.
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