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North American Valorant Teams Expected to Reduce Spending on Salaries

A challenging period for esports organizations has led some of the top competitors in North American Valorant to consider reducing spending on their teams next year, according to multiple sources. The current financial situation has caused teams to lose money, making it increasingly difficult to sustain high salaries for players.

Teams like Cloud9 and 100 Thieves, both participating in the VCT Americas league, are expected to decrease player salaries going forward. While the exact amount of the salary reductions is unknown, some players may receive only the minimum requirement, with organizations continuing to provide essential needs like housing.

Following in their footsteps, other organizations are also likely to downsize their spending, as per multiple sources. The North American Valorant scene is undergoing a much-needed market correction due to the previous high costs of player salaries.

Previously, players in North America were signed to organizations for monthly salaries ranging from $20,000 to $30,000, with the expectation that significant sponsorships or investments would justify these expenses. However, Valorant has not yet reached that level of financial stability, and many teams are feeling the effects of the “esports winter,” which has forced them to downsize.

Esports organizations have also been implementing layoffs as a result. Over the past year, notable organizations like The Guard, 100 Thieves, and FaZe Clan have made staff cuts, reflecting the challenging financial environment.

Despite the current difficulties, Riot Games, the developer of Valorant, remains committed to the long-term sustainability of Valorant esports. In the upcoming year, Riot Games plans to introduce esports cosmetics that allow partnered teams to generate additional revenue through microtransactions and skin sales in Valorant.

The success of revenue-sharing skin sales will be crucial for the financial stability and sustainability of the esports teams involved, as they navigate the changing landscape of esports economics.