The streamer who spent $1M on an esports team says esports is a terrible business: ‘Everyone is losing a lot of money’

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Disguised Toast says 'everyone is losing a lot of money' in the esports business.

That potential walkout happened when LCS teams were allowed by Riot to drop their second-tier challenger league rosters: Nearly all of the organizations in the LCS did so as a cost-saving measure, which put dozens of players and coaches out of work.

"Last week, my accountant messages me and says, 'Toast, we need to talk'," the streamer said in his latest video."He told me that I'm actually on track to spend a million dollars this year, double what I was expecting. He sent over this spreadsheet with all these red numbers, and I noted in the revenue section it was blocked out. I asked him, 'Why'd you block it out?' He said 'Well, it's not blocked out, there's just nothing there.

We do have to trust Wang on that front: We don’t have access to anyone’s books and, as he said, no esports org is acknowledging being dangerously in the red. Even FaZe Clan, which is currently at risk of being delisted from the Nasdaq because its stock price has crashed to under $1 per share, is more publicly focused on the profiles of theBut significant long-term trouble does seem to be brewing.

Disguised Toast's plan for now is to take the altruistic approach: He's going to experiment with Patreon and there will be some perks for backers, but generally speaking the pitch is going to be, if you really like the team, support the team.

 

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