Articles

15th July 2008, 16:10

The Dollars and Cents behind Warcraft 3

With more Warcraft 3 divisions being shut down from their organizations, myMYM.com's Marcus 'Wind' Ho goes behind the scene to find out more about the organization's team budgets, salaries and the most important of all - the reason to release their WC3 teams.

Over the years, competitive Warcraft 3 has proven to be a lucrative competition across South Korea, China and even Europe. Every new season of WC3L is getting tougher, and the number of Warcraft tournaments seems to proliferate year after year. More players rise to stardom, and more people begin to watch the game.

However, competitive Warcraft apparently does not just appeal to RTS fans. It is also attracting the attention of wealthy investors, who are presumably today’s sponsors of various professional gaming teams.

On the face of it, this looks like good business.


A myriad of fans turned up to catch their favorite WC3 stars in action at ROTK in Wuhan


Top-flight teams such as SK-Gaming have a monthly budget projected at more than $19,000, while MeetYourMakers boasts an estimate monthly budget of more than $45,000 for their Warcraft III team alone, with the inclusion of their salaries, flights and hotels.

This bulk of money comes mainly from the investors and sponsors behind the organization to endorse and promote their name, products and various brands.

Yet big budgets do not equal large profits.

SK, WE and MYM - How did they survive all these while?

In order to stay competitive, organizations have to spend efforts and resources through media sales (advertisements), team merchandises and micro-payments (i.e. SK Insider, Club MYM, etc.)

The latter half of 2008 has already seen the release of several teams from their respective organizations, one of which that will always remain as THE legendary squad in professional gaming’s history – 4Kings.

But how did these teams possibly fall apart?

Wicked e-Sports

According to mart1n, former manager of wicked e-Sports, pro-gaming is still at its roots, and has a long way to go.

“We worked assiduously to successfully rally a team of both Asians and Europeans. I think we became a very successful team,” mart1n said.

“But unfortunately, not everything turns out as expected from the cooperation, and the people whom you have to rely on. This often happens in cybersports.

“Money was the main reason why the WC3 squad was released. It coincided with the moment we should have gone to the WC3L, when the players had to renew their contracts. But a very small raise were offered to us; much less than the promised ones.


SouthSea and SocceR - One's a lone ranger, while the other had the back-up of MYM

“A monthly budget of $3,000 was simply not enough to keep the team, and it’s a pity we had to part ways.” - mart1n, former manager of wicked e-Sports' WC3 division

“Unfortunately, none of the players agreed to sign since the players have to earn their money from playing games, and most of them are already adults. It is their job. We like each other, but we needed support. A monthly budget about $3,000 was simply not enough to keep the team, and it’s a pity we had to part ways.”

It may also be disbelieve to many, but both Sky and Infi were also linked with the German-based organization, which is presently funded by a private investor.

Mart1n added: “We offered many humans, but to keep our high level we wanted to get one with a great name, and Sky/Infi are for sure great players.

“The CEO promised a budget big enough to keep all the players including Sky and Infi at that time.”

Beijing E-Sports Team

Speculations have always mounted over the sponsors behind the team that harbored one of the most coveted and talented players in the world. Many have suggested that BET was financially supported by the Beijing government due to its namesake.

They were close though, but not exactly right.

Tobi “quiZZ” Stahmer, formerly the manager of BET, says that the squad was part of a consulting company called Munne International Holdings (MHI for short), founded by a popular diplomatic figure, Munne.

“She is very well known in Asia for creating big events in the past like WEG, and being in diplomatic issues between China and Korea. Furthermore, she is able to speak fluently in Korean, Chinese and Japanese, which makes it pretty easy to talk to new partners and that’s why she is the important key-part of the company behind BET.”

In early April however, Warcraft fans woke up to the news that one of the strongest teams were beginning to fall apart as the players began to leave one after another with no apparent reason.


BET's old roster (From left to right): WinNers, Fov, whO, Jini

quiZZ continued: “Of course every expensive project like building a top-team in WarCraft is related with big costs and small profits.

“Especially the Korean players, who have very high expectations concerning their salaries. BET took this risk with the rear cover of a sponsor, but that’s just a very temporary state. Because who likes spending money without receiving something in return?

“Maybe some preparations should have been taken before the team was announced. For example, they should have first prepared a homepage, a structure and then the investments.

“From my point of view, there were just some problems in the communication part and the specific projects to develop the BET brand were not taken too seriously and couldn’t be finished. The sponsors were never brought up in public because there was never a homepage.

“There is no relation between the success of the team and the fans or community. In the case of BET, we had investors who weren’t interested in presenting themselves in public...” - quiZZ, former manager of Beijing E-Sports Team

“There is no relation between the success of the team and the fans or community. In the case of BET, we had investors who weren’t interested in presenting themselves in public. Nevertheless, for every development in e-sports or for making money, a homepage is necessary as a first step and that was missing. They told me, that the homepage is in progress, but nothing happened until now.”

However, quiZZ was also quick to rebuff to suggestions claiming that BET’s Warcraft 3 project was a failure. Despite MHI’s predicament, he believes that the situation can be salvaged, and the squad will make a return to the scene soon enough.

“WC3 is still a growing market in China. Munne and Erica (current owners of BET) are very well known and experienced and as they said, a reconstruction is already planned for the future.

“Maybe it was just a failure to invest all the money in such high paid top-stars like Fov and Sweet. Perhaps they should have just tried to create something step by step and be little more careful with the budgets.”

Hoorai

Hoorai’s budgets however, pale in comparison to the other dominant teams. According to insider sources, an approximate monthly budget of $1,600 was simply way too much for an underperforming team that hit rock-bottom of the WC3L before failing to qualify for the following season and facing relegation to NGL-TWO.

hoorai's approximate monthly budget of $1,600 was simply way too much for an underperforming team

Yet, sources believe that the players from hoorai felt that they deserve parity with other professional players, with a higher demand in their monthly wages

The official press release from hoorai’s website read:

 


The hoorai GmbH as a young company has its purpose in the best development of its own product that is for example the clan.

The representative value is not valid anymore after 2 years of worldwide presence because of the failed WC3L Season XIV qualification and the descent in the NGL TWO.

Therefore, a future cooperation is not possible in spite of financially efficient structures. The players have been offered pleasing alternatives to fulfill the contracts so that they are not hindered.

One parts with the strategy game genre and nevertheless one doesn’t want to deny a future engagement in this department.

The hoorai GmbH will soon announce new highlights and won’t deprive the community of news.

Does the final statement imply that the organization will re-assemble a new team? If so, who will it consists of?

Is it really worth it?

If history has taught us anything, an organization either comprising or nurturing a team of ‘talented’ players will eventually carry the risk of paying unbelievably high amounts of salaries. A prime example would be none other than Jae Ho “Moon” Jang, when MeetYourMakers decided to pick him up during his slump in early 2006.

The 22-year-old Night elf player is one of today’s top-earning professional players, having earned close to half a million US dollars in prize money throughout his entire career, and is rumored to be receiving a monthly salary of $10,000.


MYM]Moon - The world's top-earning WC3 player

But nonetheless, despite having strong financial back-ups of sponsors and investors, the question remains – is it really worth it?

 

 
Comments (94)

 

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  • 1
(last month)  #1 myMYM|Wind
Wind
PS. I don't claim all of the aforementioned figures are accurate, but I assure all of you that all of these numbers were well-researched ;)

PSS. And just when this article was released.....Delta announced that they would shut down their WC3 team :D
Last edited by Wind at 15.07.2008, 21:01
(last month)  #2 myMYM|Elven_Star
Elven_Star
Such a nice and revealing read.....
Elen sila lumenn omentilmo
(last month)  #3 myMYM|Frozenik
Frozenik
Very interesting article :) Gj Wind!

I think it worth it, because sponsors gets money from commeracials and gets new consumers.
Last edited by Frozenik at 15.07.2008, 20:55
(last month)  #4 Frozenik
Frozenik
Very interesting article :) Gj Wind!
(last month)  #5 SuperaddE
SuperaddE
Interesting, very interesting
Gvision fanboy, lol :D
(last month)  #6 G-Dy
 
Hmm, one year ago I heard rumors that Moon is earning aroung 7.000 USD, later it was 9.000 and now it's 10.000 :p Moon is gaining shape!

To the article: it was very nice to read and very informative, since no one really like to talks about money (the first time I've actually seen figures) :p
(last month)  #7 bMh
bMh
There was a rumour which is said that Korean Pro SC team want to signed Moon with $20.000/month
(last month)  #8 MYM|Grubby
Grubby
#7 actually it was $200,000.


PER DAY.
(last month)  #9 bMh
bMh
I said it was just a stupid rumour according to growing salary ;)
(last month)  #10 Phil
Phil
:D!
I'm forever blowing bubbles!
(last month)  #11 luvstyle
 
i smell jelousy ;D
(last month)  #12 OrCiSWeAk
OrCiSWeAk
who would not be jelous?^^
<3 Hasu
(last month)  #25 NeedsMoreKodoBeasts
 
Grubby it's bad manner to reveal your salary.
(last month)  #45 T0uch
 
Ahah xD
(last month)  #49 technics
technics
wasnt there a cow in the negotiations somewhere aswell?!?

200k and a cow $$
(last month)  #74 JuneWoo
JuneWoo
WC3 Salary is now nearly to SC salary, remember that Bisu earn arround 14 000$ per month with SKT now, NaDa won 16 000$ per month with FoX!
(last month)  #13 raxhe
 
nice read , i love that kind of articles
Most aimer of my city, the legend, my legend ;)
(last month)  #14 BLIZMaliSunSet
MaliSunSet
Very nice article WinD, keep up the good work : )
I <3 MYM
(last month)  #15 Genie
Genie
Wow Wind, I'm very impressed!
(last month)  #16 LUMS`Q-QQ-Q
Q-QQ-Q
Is 45K the budget just for MYM's wc3 squad or the entire organisation?
Last edited by Q-QQ-Q at 15.07.2008, 23:28
(last month)  #17 myMYM|Wind
Wind
WC3
(last month)  #18 The1Crow
The1Crow
"estimate"
Some ppl come into our lives and quickly go. Some stay ever!
(last month)  #19 The1Crow
The1Crow
To respond to your last question if it is worth. I would say yes, otherwise I see no reason why that business was growing so fast the last years. More and more events pop up, players receive bigger payments, the prize moneys reach new standards and the 'top teams' keep their teams while new teams are also being established. For me that says, if it wouldn't be worth, means a business were you cannot make profit out of it, why should you do it for so many years?
Some ppl come into our lives and quickly go. Some stay ever!
(last month)  #26 myMYM|Wind
Wind
Yeah sure, but bear in mind that competition doesn't just allow you to show how good you are, but your shortcomings as well. But yet with more tournaments, players have the right to demand a higher salary...which may not benefit the organizations in the long run.

And ye to #18, its "estimated" :D
(last month)  #27 JohnnyB-122
 
A piece of advice to you, Wind. When taking a strong standpoint, be prepared to defend it clearly and be transparent in your arguments.

I didn't see Crow say anything about competition - what are you replying to? And what shortcomings are to talking about? Or are you pointing out generally that competition uncovers your strengths and weaknesses? That would hardly be news to anyone, yet it doesn't prove that eSports is a weak or unprofitable market.

And then I'm confounded by the next redudancy. "[...]a higher salary...which may not benefit the organizations in the long run." I know what could benefit organizations, and not just the ones in eSports, but the ones all over the world. For all employees to be volunteers!

All ridicule aside, this is a question of services provided and expenses paid for those services. A person's right to ask a higher salary is never questioned, but it's up to the organization to grant it or not. They should only grant it, when they can afford it. If not, that player would not be met with his demands anywhere and would be forced to lower his expectations. If they can afford it, that probably means they have a business model that can reasonably expect them to make a profit.

There's also a thing called investment. To go into the eSports market in the beginning (let's face it, we're only in the beginning) may be risky, but with great risk can come great profit. No one ever made a great profit by always going for the easiest odds. While the yearly income may not be staggering at the moment, names and brands are being created all around us, some of which in the future may experience great growth and fame and profit. Others will wither. It is a natural process.

So far you've displayed that you think taking a calculated risk of taking root into one of the fastest growing billion dollar industries is not beneficial because ... a players salary is a couple of thousands too big.
(last month)  #38 myMYM|Wind
Wind
Quoting JohnnyB-122:

didn't see Crow say anything about competition - what are you replying to? And what shortcomings are to talking about? Or are you pointing out generally that competition uncovers your strengths and weaknesses? That would hardly be news to anyone, yet it doesn't prove that eSports is a weak or unprofitable market.


Thanks. Regarding my response to crow, yeah, I meant that competitions can be a double-edged sword since it shows not only your strengths, but your weaknesses as well.

Crow mentioned "events", which I assumed he was referring to tournaments/competitions.

Quoting JohnnyB-122:

"A person's right to ask a higher salary is never questioned, but it's up to the organization to grant it or not. They should only grant it, when they can afford it. If not, that player would not be met with his demands anywhere and would be forced to lower his expectations."


You are absolutely right with this. But it is indeed that those players from wicked/BET/hoorai are asking for higher salaries (and they can probably list a million reasons as well), which the organization see no reason to grant, thus explaining why many companies have decided to close their WC3 section.
(last month)  #50 hellstar
hellstar
I agree 10.000$/month for 5st-race is ok...Moon is imba player MYM has...I hope he will be in SC2 team with higher salary :)..but in fact, e-sport is really hard environment...succeed players are few and they can only play in 4-5 years ...
DOTA COLA !!!
(last month)  #20 myMYM|Rakhilim
Rakhilim
Good job Wind :D
(last month)  #21 4KFNyPG
 
great article! very nice to read. i think you should point out in your article that the 45,000 is the monthly budget for wc3 team alone, not the whole organization, as i was also confused by that.
(last month)  #22 FlaskeWanker
 
Great article, actually one of the best I've ever read. Nice work.
(last month)  #23 Mars
 
hoorais budget is definitely wrong
Last edited by Mars at 16.07.2008, 00:33
(last month)  #24 MYM|Mercy
Mercy
I saw your initial response! HEHE :d
Knowing my destiny - Is accepting your defeat...