Esports organizations invest in specific disciplines not just to win trophies but also to secure financial gains for both themselves and their players. Although Valorant is relatively new compared to its main competitor, Counter-Strike, Riot Games and organizations have found numerous ways to generate revenue. This article outlines the key methods.

Main Ways Organizations Earn Money in Valorant:

• Sponsorships: Gaining financial support from brands that advertise through the team or tournaments.
• Prize Pools: Participating in tournaments and championships with the opportunity to win cash prizes.
• Merchandise and In-Game Skins: Selling merchandise (clothing, accessories) and in-game skins featuring team logos.
• Content Monetization: Earning from ads and subscriptions on streaming platforms through content related to Valorant.
• Esports Leagues and Franchises: Team owners earn through participation in leagues and franchises that provide stable income.

However, these are just the basics. We’ll delve into each of these revenue methods and explore others, including the impact of banning betting and gambling.

Sponsorships

One of the primary income sources for an organization is money from sponsorship deals, where partners are promoted on the team’s social media and uniforms. The more prominent the spot on the uniform, the higher the price organizations can ask. Compared to CS2, sponsorship deals in Valorant bring in less money since Riot Games strictly prohibits gambling-related advertising, which often comes with large sums. As a result, organizations are limited to deals with non-gambling brands.

In-Game Skins

In 2024, Riot Games, in collaboration with VCT partner clubs, introduced in-game skins designed around various clubs. For every VCT-branded capsule sold (priced at 2,340 Valorant Points), Riot Games shares a portion of the revenue with the club whose capsule was purchased. This allows well-known clubs to significantly boost their budgets thanks to fans purchasing items with their branding.

Valorant Champions Appearance

Qualifying for the main event of the year—Valorant Champions—not only offers an organization the chance to win the most prestigious trophy but also improves their financial standing, beyond just the prize pool. As of this writing, three Valorant Champions tournaments have been held, with a fourth on the horizon.

For each event, Riot Games developed and added a skin set to the game, featuring popular weapons like the Vandal or Phantom, and a knife. Through the sale of these skins, all participating organizations earn substantial sums, regardless of their final standing in the tournament, as each team receives an equal share of the bundle sales. Last year, 16 teams split $20 million from these sales.

Partnership with Riot Games

Partnering with Riot Games significantly boosts a team’s position, as it grants them a slot in the VCT partner league, allowing them to compete with the top clubs in their region and qualify for international competitions.

Unfortunately, securing a partnership requires significant effort, progressing from Challengers to Ascension, where a first-place finish among the top regional Challengers teams grants a partnership. Until this year, the partnership term was two years, but Riot Games has since altered the system, now granting the top Challengers club a one-year VCT spot, with the opportunity to retain it based on performance.

Prize Money

The esports scene has evolved significantly since the days when a club's budget relied solely on prize money. Nowadays, most top clubs allocate almost all prize money to the players. This benefits both parties: players are more motivated to win tournaments and achieve high results, earning more money, while the club's achievements boost their income from sponsorship deals and merchandise sales, enabling them to fund the team.

Transfers

The transfer system in Valorant isn’t as developed as in Counter-Strike 2, where player contracts can reach millions of dollars. Therefore, major clubs don't focus on selling their players. Budgets are mainly supplemented through transfers by organizations not playing in the VCT league but possessing young, promising players who could become future Valorant stars.

Merchandise

Selling merchandise is another way organizations can earn additional revenue. However, it usually represents a small percentage of the overall budget. Merchandise is often more about brand image than profit, as not many fans are willing to buy the entire range of products, which are often priced high.

Own Academies

Valorant is a relatively new discipline, only a few years old, but many organizations believe it will continue to grow and become even more popular. This belief is not just based on faith but also on concrete actions. Some organizations are willing to invest significantly in creating their academies, hiring qualified staff and coaching teams. These experts can identify and nurture talented players, either to elevate them to the main roster or sell them to another organization for a financial gain.

Fan Base

As mentioned in previous points, the main revenue source for organizations in Valorant depends on the size of their fan base. The larger the fan base, the more they earn from merchandise and in-game skin sales featuring their branding, with a portion of these revenues contributing to the team’s budget. The number of fans and the club's recognition also impact the sums received from sponsorship deals with various brands.

Thus, a large and loyal fan base is key to a team's success. Many clubs strive to expand their fan base in various ways, such as hosting events (e.g., Watch Parties) and signing multiple streamers from around the world to increase recognition not only in their region but also internationally.

The Impact of the Absence of Gambling in Valorant

The Valorant Champions Tour is a closed league featuring the best teams worldwide, with all aspects strictly controlled by Riot Games. Part of this control includes a ban on advertising any gambling or undesirable products.

The absence of betting companies, other gambling, and cryptocurrency in Valorant has both positive and negative consequences. In Counter-Strike 2, such sponsorship deals make up a significant portion of most clubs’ budgets. However, the inability to advertise these services in Valorant leads to lower salaries and the need to find alternative monetization methods. Riot Games recognizes this situation and helps teams by introducing additional revenue streams, sharing part of the profits with clubs participating in the VCT.

Conclusion

Earning money in Valorant for organizations is a multifaceted process involving tournament participation, sponsorships, merchandise sales, content creation, and other activities. Each of these components contributes to the overall success and financial stability of esports organizations. This enables them not only to sustain their operations but also to actively develop, improving conditions for their players so they can achieve the best possible results on the battlefield.