Multiple organizations in VCT Americas, the Riot Games' partnered league, are anticipated to downsize their spending in Valorant for 2024, according to a report from WIN.gg. This comes as Sentinels launched public crowdfunding efforts, revealing financial troubles, and several esports organizations withdrew from Valorant's tier-two system.
The report highlights unsustainable salary costs as one of the main reasons behind teams' decision to downsize. It specifically mentions 100 Thieves and Cloud9 as organizations that are expected to reduce players' wages.
The esports industry is currently facing winter, with many companies experiencing mass layoffs. Both 100 Thieves and The Guard, two organizations in VCT Americas, recently underwent layoffs. Additionally, Cloud9 has chosen to reallocate their investments, focusing on a select few competitions and controlling costs with their Valorant team.
The minimum salary for players in VCT Americas is $50,000, while some North American players were earning salaries of around $30,000 per month before the creation of partnered leagues in 2023.
While teams will generate some revenue through their participation in the Riot Games' league, such as an annual stipend, in-game skin sales, and incentive-based compensation from the developer, it may not cover all expenses associated with participating in the league. Teams can also earn money through prize pools in the league and international tournaments, as well as qualifying for Valorant Champions and receiving a portion of the revenue from limited-edition skin bundles.