Global Esports’ CEO Rushindra Sinha recently cleared the common misconception that international esports organizations, like 100 Thieves and FaZe Clan, are profitable and explained that only Brazilian organization LOUD is close to breaking even. He pointed out that despite raising $130 million USD in the last three years, 100 Thieves is not even close to breaking even, which is evident by its decision to lay off 20% of its staff. He suggested that those interested in understanding the esports industry should read FaZe’s submission for its IPO, as it provides valuable insights into the workings of a publicly traded esports company. He also highlighted LOUD, a Brazilian esports organization that has managed to break even and maintain financial stability without relying on VC funding.
Sinha shuts down the rumor of international esports organizations being profitable
In a recent livestream, a viewer told Sinha that 100 Thieves is the most profitable organization across the globe. Responding to this, he stated that it is incorrect to assume that 100 Thieves is profitable, as evidenced by its recent decision to lay off 20% of its staff. Sinha highlighted that 100 Thieves had raised $130 Million USD, which is nearly ₹1000 Crore INR, in the last three years. “100 Thieves has raised ₹1000 Crore to do what it is doing now. It is nowhere close to being profitable; it is not even close to breaking even. If it were, it wouldn’t have to raise ₹1000 Crore,” he added.
He explained that while it is understandable that people may not fully understand business, it is not okay to spread misinformation.
Sinha suggested that those interested in understanding the esports industry should read FaZe’s submission for its IPO. The CEO emphasized that the document is lengthy, spanning over 300 pages, but it provides valuable insights into the workings of a publicly traded esports company. “Go to the backend and see its revenue. You can see what it is spending on, you can see its salaries, you can see where they are burning their money. That’s the advantage/disadvantage of a public company. Go and see how it functions. It is not profitable,” he added.
Sinha highlighted that only one organization across the globe is close to breaking even and does not need VC (Venture Capitalist) funding. However, the organization is still planning to take funding in order to scale. “Not because its esports division is profitable, but because it has made other verticals that are funding its esports division. That esports organization is LOUD, based in Brazil,” he added.
Sinha spoke highly of LOUD, stating that the organization has been able to learn and execute strategies that many other esports organizations across the globe have not been able to. “It has taken the best of 100 Thieves, FaZe Clan, Cloud9; even in India, what S8UL Esports, GodLike Esports, us, and everyone is doing. It is probably the most evolved version of what that needs to be,” he added.
He discussed how LOUD has managed to break even and maintain its financial stability without relying on VC funding. “LOUD has seven and six different verticals to support its esports. Esports is not its income; esports is there to get its viewership, esports is there to keep it engaged with its audience, but it is monetizing in multiple other ways,” he said.
Sinha also quoted what LOUD’s CEO Bruno Bittencourt said to him: “If we had to rely on selling jerseys like 100 Thieves, FaZe, or any other brand, we would not have made it.”
LOUD is an esports organization established in February 2019 by Bruno Bittencourt, a renowned content creator in Brazil. The organization experienced rapid growth and success in the esports scene of Brazil, especially in mobile gaming, before branching out into PC gaming. Presently, LOUD has teams competing in a variety of games, including Free Fire, Fortnite, League of Legends, and Valorant.
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