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Interview with the president of the smash club who has experience with running such tournaments. He had told me about the stresses and difficulties of running tournaments and how if you don't keep the ship running that the stress can build up and over come you. He told me about what it takes to run a tournament and how he gathers the prizes for smash club. He told me about how in the larger tournaments the importance of a prize pool to gather better talents to run a more fun event.

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Question: Is having large prize pools profitable?

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Question: Is having large prize pools profitable?

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This popular source gave me new information on how the biggest tournament gathers money for their contestants. They use the existing player base for funding and connect the battle pass and incentivize players to buy it for cosmetics and gameplay aspects that they want so its a win for valve, the player base, and the competitors that are playing.

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This is a popular source, because this is not someone with the valve team reporting on how they gather their prize pool but this is a journalist writing about how they acquired their prize pool.

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In the video essay, theScore eSports explains how DOTA 2 has the largest prize pools in eSports. The way that they gather money for their International Tournament is different from getting sponsors, but related in a sense. They have what something called the compendium. That is something akin to a battle pass in which players of DOTA if they buy it they contribute to the overall prize pool for the tournament. Players are also incentivized to buy the compendium because it's not just to contribute to the prize pool but it also gives in game perks which is the reason why DOTA 2 has the largest eSports prize every year and of all time, its all player funding.

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Source: Making Millions: Why Dota 2's The International Has Esports’ Biggest Prize Pools

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Source: Making Millions: Why Dota 2's The International Has Esports’ Biggest Prize Pools

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By: theScore eSports
Popular source

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Making Millions: Why Dota 2's The International Has Esports’ Biggest Prize Pools

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The popular source gave me new information on what it takes to create your own tournament series. He wanted to host a cool event for a game that he had enjoyed watching, so he gather his money and announced the prize pools then it all came to him. He got competitors, got some sponsors, and he made profit for running a tournament is what the tread was talking about.

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This reddit thread talks about how Charles (Cr1tikal) White started his own Wi-Fi tournament series for the game Super Smash Bros melee. He funded $20,000 to start his own series to see if people would want to watch and to help a community that he is interested in.

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The source is a popular source, because it being written by someone outside of the people who run the tournaments. This reddit thread is talking about how Cr1tikal is funding a tournament and if he thinks its fun and gets viewership he will continue the series.

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Source: Cr1tikal's Ultimate online tournament prize pool gets matched by twitch for a total or $20,000. If the tournament goes well he is extremely interested in hosting another tournament for melee.

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Source: Cr1tikal's Ultimate online tournament prize pool gets matched by twitch for a total or $20,000. If the tournament goes well he is extremely interested in hosting another tournament for melee.

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By: An unknown author
Popular source

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Cr1tikal's Ultimate online tournament prize pool gets matched by twitch for a total or $20,000. If the tournament goes well he is extremely interested in hosting another tournament for melee.

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880k members in the smashbros community. Welcome to Reddit's finest Smash Bros. community!

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Cr1tikal's Ultimate online tournament prize pool gets matched by twitch for a total or $20,000. If the tournament goes well he is extremely interested in hosting another tournament for melee. from smashbros

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This Trade source has given me new information on how important the size of the prize pool is in the success of the overall event. If the prize is small there will be less likely to have higher viewership, less likely to draw in big names in the sport, and less likely to be sponsored because of the previous reasons so there will be less money for the staff involved as well. It gives reason to why eSports tournaments get funding.

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In the article the main topic that the author is questioning is weather large prize pools in eSports tournaments matter for engagement with the community. He find that the answer is a yes. Larger prize pools draw in more competitors, large stars that want to participate in the event, more viewers, which draws in more sponsors and makes more profit for the people running the event so they can repeat, and make a larger event the next time they run the event.

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The source is a trade source, because its written by a person involved with eSports, he does journalism in large events. This is organized like a blog style post on if large prize pools matter in community interaction within eSports.

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Source: ARE GIANT ESPORTS PRIZE POOLS MANDATORY FOR TOURNAMENT SUCCESS?

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Source: ARE GIANT ESPORTS PRIZE POOLS MANDATORY FOR TOURNAMENT SUCCESS?

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By: Michael Jeong
Trade Source

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The article talks about the prize pool distributions between the highest ranked tournaments and the lower ranked tournaments and how that affects team distribution and individual distribution. They found that larger tournaments where much more skewed in the overall distributions in their top prizes while the lower tournaments were more even but in team games the distribution is much worse than the individual prize pools.

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This is a scholarly article. This article is how the competitors profit from performing in eSports tournaments. It shows that for team games (Overwatch, League of Legends, DOTA, etc.)  overall they have larger prize pools that individual competitor games (Smash Bros, Street Fighter, TEKKEN, etc.) prize pools, but that individual games they have a much better prize pool distribution. This shows the side that not only the organizers are benefiting from tournaments and it helps fund careers as competitors and not just as organizers.

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This source is an scholarly source because it is written by a professor from the University of Maryland with a history in Economics.

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Source: Team vs. Individual Tournaments: Evidence from Prize Structure in eSports

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Source: Team vs. Individual Tournaments: Evidence from Prize Structure in eSports

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By: Dennis Coates
Scholarly Source

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In the article it explains that the higher the prize pools for eSports tournaments the more viewers that they get. They also explain that because of higher viewership its more likely that they are going to get a better sponsorship deals, better merchandise sales, more in person ticket sales, and better on stream attraction.

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This is a lengthy scholarly article. This gave me the new information that not only are the profit and scene for eSports tournaments are growing but the entire eSports industry is growing to be a larger industry overall. The data that the chart shows is that more money is being spent in this industry creating more jobs. According to the articles data the more money that an event has for a prize pool it has a higher viewer rate, a higher sponsorship chance and higher ticket sale rate for in-person events.

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The source is a scholarly source, because the format is organized article. It has a abstract, Introduction, the information that they had gathered, then the results, and conclusion.

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By: Esa Mangeloja
Scholarly source

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I think that this source is fairly paced web article. As someone who had watched these tournaments it gave me a new perspective in what the money in the tournaments purpose is for. This helped me know how the organizers the reasons to why they fuel the prize pools and how they make some profit in this industry. This ties into the scholarly source of "Economics of eSports" in showing that the market for eSports and tournaments is a growing industry and is bringing in more money every year.

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This source is an trade source, because it is written by someone within the eSports community. Its organized as a online article, written by one person from the eSports community who is sharing his experience in how they gather the money.

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In the article it explains that the large prize pools are just incentives for high class competitors to be drawn into the tournament. How they generate the money is that an organization places a prize pool for the event as a down payment almost to draw in views and they recuperate the loss by placing ad's in the space, by streaming it to large audiences gaining money from the view and ad's that want to be seen within the space, along with their merchandise that promote it will make them a profit from the loss that they had to take by making the prize pool. The loss could be completely avoided if someone were to donate the prize prize pool as well.

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Source: HOW DO ESPORTS TEAMS MAKE MONEY?

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Source: HOW DO ESPORTS TEAMS MAKE MONEY?

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By: Cody Daniels
Trade Source