In a groundbreaking move, leading esports powerhouses, including S8UL, Revenant Esports, GodLike Esports, Enigma Gaming, Global Esports, and others, are spearheading discussions to enforce a maximum salary cap at Rs. 2.5 lakh per month for players. This bold initiative aims to address the detrimental effects of rampant player poaching, which has been adversely impacting team performance during high-stakes competitions.

Indian Esports Orgs to Set a Rs 2.5 Lakh Salary Cap for Esports Players

During a recent closed-door meeting among owners from fifteen influential esports organizations, concerns were raised about the escalating financial strain caused by skyrocketing player salaries. Owners expressed how the relentless pursuit of top-tier talent through lucrative paychecks has led many organizations into financial turmoil. The discussion delved into the intricate web of expenses incurred by these organizations, ranging from providing gaming devices and establishing boot camps in Mumbai to player training, strategic development, branding, and even covering travel, nutrition, and mental well-being costs. Some organizations disclosed monthly expenditures soaring up to Rs. 20 lakhs.

To emphasize the gravity of the situation, one unnamed owner drew a parallel with traditional sports, stating that losing a key player is akin to a star cricketer leaving the team just before a critical match. For esports, where team spirit is paramount, such abrupt departures can significantly impact the dynamics of the game, highlighting the importance of fostering a robust team culture.

While organizations strive to balance their books through tournament prize money and brand endorsements, players argue vehemently against the imposition of salary caps. A prominent esports athlete emphasized that their growing popularity should translate into higher compensation packages, and any restrictions on salaries would undermine their true value, irrespective of their stellar tournament performances.

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In the Indian esports industry, titles like Battlegrounds Mobile India (BGMI), Valorant, Counter-Strike, Dota, and Pokemon Unite have witnessed a surge in popularity, attracting millions of players and avid spectators. The evolution from online streams to grand offline LAN events in stadiums mirrors the trajectory of traditional sports. Notably, the total prize money awarded in both online and offline competitions in 2023 approached an unprecedented Rs. 30-35 crore, marking a historic pinnacle for online gaming in India.