Inside a Tier 2 group in 2026

Esports groups usually seem worthwhile at a look, however actual monetary particulars are not often shared. Nonetheless, CYBERSHOKE Esports lately revealed the working prices behind a Tier 2 Counter-Strike group.

This text explores the price of operations for an esports group and the way income nonetheless fell quick. 

The figures printed by CYBERSHOKE Esports clarify why esports earnings usually look good on paper however fail to translate into revenue.  

Based in 2023, the organisation competes in Counter-Strike under the highest tier and has been primarily based in Belgrade, Serbia, since 2024. Over roughly two and a half years, that is what the numbers appear to be for CYBERSHOKE Esports:

What makes this case particularly helpful is that the figures are dependable. They have been shared publicly by Erik Shokov, the founding father of CYBERSHOKE, along with an in depth breakdown of bills. 

Due to that transparency, CYBERSHOKE can work nicely as a reference level for different Tier 2 groups. Earlier than even particular person value classes, the headline figures already present a key actuality for a lot of esports operations: regular exercise and a number of earnings sources nonetheless battle to cowl the total prices of competing at knowledgeable stage. 

A big share of esports earnings is shortly absorbed by mounted prices, akin to participant salaries and compensation, which make up the most important a part of esports working prices for many groups. 

Over roughly two and a half years, the organisation spent $504,411 on participant pay, with that single determine making up greater than half of its whole working prices.

On the Tier 2 stage, salaries are troublesome to scale back with out creating issues. There are a number of components at play: 

It’s additionally vital to maintain the numbers in perspective: this spending doesn’t level to excessive wages or luxurious contracts, it simply displays the essential value of sustaining knowledgeable roster in trendy esports firms. 

Participant buyouts add one other layer of value to esports operations. For CYBERSHOKE Esports, buyouts totalled $181,700 over roughly two and a half years. 

Buyouts create monetary strain early on, as a result of the price is paid upfront earlier than a participant has competed for the group or delivered outcomes. In contrast to salaries, which assist day-to-day work, buyouts are a long-term wager. Groups put money into a participant hoping that their efficiency improves and that outcomes will comply with. 

Because of this buyouts result in inflated budgets as a result of they’re upfront prices. Once they do pan out, the earnings lags behind the spending, so that they add quite a lot of strain. 

Housing is a key a part of the esports value of operations for groups that prepare collectively on daily basis, with CYBERSHOKE Esports spending $126,625 on group home lease over roughly two and a half years.

Sharing a residence is a standard incidence in esports as a result of it’s simpler for gamers to follow collectively and ensure they will win towards better-funded opponents. On the identical time, needing to pay lease provides an additional layer of strain. 

Bootcamps and LAN journey are a smaller a part of the prices concerned, however they nonetheless play an vital function in efficiency, with CYBERSHOKE Esports spending $48,568 on bootcamps and $19,000 on journey to LAN occasions. 

In contrast to mounted bills, spending on this space adjustments over time relying on what number of occasions a group qualifies for, the place they’re held, and the way a lot further preparation is required. Some seasons contain extra journey and longer coaching, whereas others want much less. 

These prices are troublesome to decrease with out affecting outcomes: 

Some elements of the prices entice much less consideration, although they’re important for operating a group correctly. For CYBERSHOKE Esports, taxes and authorized charges got here to $49,040, that are prices that include working as a proper esports enterprise. 

Different bills assist picture and participant wellbeing: 

The CYBERSHOKE Esports case displays the strain many esports firms are dealing with in the course of the present esports winter, with tighter funding and losses being more durable to handle, however what additionally stands out is the response to that actuality. As Shokov defined, there’s a clear demand for transparency, which has led the group to work on a devoted web site that can publish financials and aggressive outcomes reside. On this local weather, openness is changing into a part of long-term sustainability.