Professional esports often looks profitable from the outside but new financial disclosures show that many teams spend far more money than they earn. This week, a Tier 2 Counter-Strike organization shared its full budget, exposing the high cost of competing below the top level.
CYBERSHOKE Esports, an organization that was founded in 2023 and has been based in Belgrade, Serbia since 2024, revealed that it spent nearly one million dollars over the past two and a half years while earning only a small fraction of that back in prize money. The details were shared by Erik Shokov, founder of CYBERSHOKE.
According to Shokov, CYBERSHOKE Esports spent $942,675 over roughly 2.5 years. The major chunk of the money went straight to player salaries and compensation, totaling $504,411. On top of that, player buyouts cost $181,700, while renting a team house added $126,625. Additional expenses included bootcamps, taxes and legal fees, travel to LAN events, jerseys, and sports psychology support.
CYBERSHOKE Esports did generate revenue during this period. Over roughly 2.5 years, the organization reported $620,110 in total income.
The revenue breakdown was:
- 2023: $90,528
- 2024: $282,577
- 2025: $247,005
This income included sponsorship deals, player transfers, prize money, and jersey sales. Despite that growth, the numbers still did not add up. With expenses far higher than revenue, CYBERSHOKE Esports recorded an overall financial loss of $322,565 for the period.
Here’s a quick look at the operation cost breakdown:
| Category | Amount (USD) |
|---|---|
| Salaries & compensation | $504,411 |
| Player buyouts | $181,700 |
| Team house rent | $126,625 |
| Bootcamps | $48,568 |
| LAN travel | $19,000 |
| Taxes & legal | $49,040 |
| Jerseys | $8,921 |
| Psychologist | $4,400 |
| Total (≈ 2.5 years) | $942,675 |
At this point, one must probably think that financial losses are limited to smaller teams only. However, that’s not the case at all, as several major esports organizations have also reported negative results.
G2 Esports reported €27 million (~$31.9 million USD) in revenue in 2022, including €3 million (~$3.5 million USD) from its League of Legends team. Despite this, the organization projected a €3 million (~$3.5 million USD) operating loss in 2023 and later reported a €1.9 million (~$2.2 million USD) operating deficit. G2’s revenue in 2023 was estimated at €25 to €30 million (~$29.5 million to $35.4 million USD), while payroll costs increased by €2 million (~$2.4 million USD). Similarly, Fnatic reported a €6.37 million (~$7.5 million USD) net loss in 2023.
All of this points to the same conclusion. Revenue alone does not mean profit in esports. Costs keep rising, while stable income remains hard to find.
But, there are some rare exceptions too. Global Esports, an Indian esports organisation, is one of the few teams to publicly say it is making money. Founder Rushindra Sinha said the organisation was profitable for the 2024 financial year, backed by $2 million in real cash revenue. He also made it clear this was actual money collected, not just accounting figures.
A big reason for that success is Global Esports’ partnership with Riot Games through the VALORANT Champions Tour. Since joining the league, the team says its revenue has grown four times. That kind of stability is rare in esports and shows how important long-term partnerships are right now.
Also, by late 2025, Nongshim Esports, the organisation behind League of Legends Champions Korea (LCK) team NS RedForce, has announced it was on track to record its first-ever annual operating profit, driven by diversified revenue streams and controlled spending.
In the end, the CYBERSHOKE Esports numbers make one thing very clear. Tier 2 Counter-Strike is not a money-making business. It is a high-risk investment driven by hope, passion, and long-term bets on player development.
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