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Odgers Berndtson: Annual income of esports top management can reach $170 000

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Headhunters are often among the first to identify trends, thereby making them the people who come to find the best managers.

The esports market has also followed this trend. Since 2015, we have seen the formation of a new large-scale industry. Initially the clubs and teams looked like a group of niche enthusiasts without any built-up system, wishing to attract 1-2 professionals from the corporate world. Today the industry looks as a full-fledged ecosystem of the largest clubs, companies and holdings. Each of them has its own staff, corporate structure and Leadership Team. However, there is very little systematized information about the internal structure of cybersports, such as what the clubs have in common or what is the salary market like, although the transparency of an industry is one of the most important factors in its growth and development.

Odgers Berndtson has interviewed twenty top club managers around the world – from North America to Oceania, including Western Europe, Russia and the CIS countries. The results of this study will be useful for all market participants: clubs to compare themselves with competitors, investors who want to enter the esports market, professionals who want to work in the industry, and for fans who are interested in understanding what’s behind their favorite players.

Organisational structures

During interviews with representatives of esports clubs, we have identified 2 main management models (each of them can be subdivided into 2 subcategories):

The first model is a business structure with traditional key functions inside: Sales, Operations, HR, Finance, etc., which report to the CEO. These structures follow the classic organisational model from the corporate world. 81% of the clubs we surveyed have this type of organisational structure.

The remaining 19% of clubs have only two key managers – CEO (Chief Executive Officer) and COO (Chief Operating Officer), who share areas of responsibility among themselves. The most common configuration is when one manager develops such functions as Sales, Marketing and Gaming, and the another one is responsible for the back-office (accounting, finance, etc.). In 50 % of these companies the club outsources the functions of sales and marketing, and the rest have these functions (including sales and marketing) implemented internally.

Sports management

The main resource of the esports business are players, teams, and sports results. Nowadays, clubs use 2 main models of sports management. 57% of clubs have a Sports Director / Chief Gaming Officer who is responsible for team management and sports performance. In the remaining 43%, this function is linked with one of the top managers of the club (CEO / COO). The main factor in both approaches is the CEO / COO’s personal professional gaming experience.

Compensation packages

After we have gathered and systemized all data of compensation packages in the clubs, we saw a big difference in absolute values (up to 10 times). This is due to the different living standards in the regions where esports clubs are present. To present the relevant average earnings in key positions, we removed 10% of the minimum and maximum values.

Annual income:  

•           CEO – from $ 70,000 to $ 170,000 gross;

•           COO – from $ 50,000 to $ 160,000 $ gross;

•           CCO (Sales, Partnerships, Sponsorships) / CMO (Content, Marketing, PR) – from $ 50,000 to $ 150,000 gross;

•           HRD / CFO / CIO / Legal Director – from $ 40,000 to $ 120,000 gross.

Compensation packages insights

Over the past 1.5-2 years, the structure of compensation packages has changed towards a form similar to other industries – a fixed part and a bonus (the amount of which depends on the KPIs fulfillment). It is important to note that about 40% of top clubs stimulate their top team with long-term incentives (LTI).

The main KPIs for top management are operational: P&L performance, growth number of subscribers on social networks and active fans, views of matches / team content, users retention, and attraction of partners.

Most of Chief Gaming Officer and the CEO have sports results reflected in KPIs. This distinguishes esports managers from colleagues who manage clubs in traditional sports, where in most cases the entire team of top managers has an additional bonus from the team’s athletic performance.

Market trends

•           An esports club is no longer just a collection of players who play for themselves or their investor. It is a full-fledged business with media and commercial parts. Esports has become a valuable part of the entertainment market;

•           The staff ranges from 18 to 75 people. Only 21% of the organizations we had surveyed have more than 50 employees. Esports clubs, unlike traditional sports teams, still have compact structures;

•           Esports companies are becoming increasingly mature and open toward external markets. They hire people having no professional gaming experience, invite business consultants to tackle recruitment tasks, draft strategy and move the club forward;

•           Proper P&L management is a short- or mid-term task for 75% of top clubs;

•           Employment’s agreements with athletes have changed:

– KPIs for sports results now included

– employment contracts became long-term;

– the club’s share has increased in the prize money from tournaments.

About the study:

Odgers Berndtson is one of the largest international consulting companies with a focus on top executive search, assessment and development. Odgers Berndtson is the only executive search company with a dedicated Global Gaming Practice. The practice specialises on recruiting executive teams for the gaming and esports industries.
Authors: Leonid Koen, Andrey Salitov.

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Compliance Updates

Merkur Group Strengthens Global Compliance Strategy

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Under the theme “Perspectives,” a total of 43 compliance staff members from the Merkur Group across various countries gathered from 30 June to 1 July to further develop compliance processes in a sustainable manner. Colleagues from Germany, Spain, England, Malta, Australia and the US traveled to the two-day meeting at Benkhausen Castle, the in-house training centre of the Merkur Group. The workshop set the stage with expert presentations on global and digital topics such as cybersecurity, risk management and artificial intelligence. A panel discussion featuring representatives from various international companies within the Merkur Group, as well as a digital quiz, rounded out the programme.

In keeping with its guiding principle, the workshop focused on sharing experiences, fostering global networking and providing impetus for the further development of compliance processes. Because informal exchanges are also key to close cooperation, the evening programme created a relaxed atmosphere and gave participants the opportunity to continue their conversations, make new connections, and further strengthen team spirit across company and national boundaries.

“The ideas and diverse perspectives gained during the workshop will now be incorporated into our day-to-day work and help us to continuously improve collaboration and existing processes,” said Ludwig Beckmann, Chief Compliance Officer of the Merkur Group.

The concluding feedback session also highlighted just how valuable the international exchange is. The term “collaboration” came up particularly often, a clear indication of how highly the participants value working closely together within the international compliance network.

The post Merkur Group Strengthens Global Compliance Strategy appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Anne Marie Caulfield

GRAI Launches New Campaign Helping Parents to Spot the Signs of Underage Gambling

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The Gambling Regulatory Authority of Ireland (GRAI) is encouraging parents and guardians to be alert to the signs of gambling among young people and to intervene early to prevent gambling harm.

The signs of gambling aren’t always visible, the GRAI in partnership with the Health Service Executive Addiction Services have developed dedicated advice on www.grai.ie to equip families with the knowledge to recognise the signs, advice on how to start the conversation with their children about gambling, and where to seek help if required.

To support the guidance, the GRAI has launched a national public awareness campaign across video on demand, radio, digital audio, and social media platforms, bringing this message directly to families across Ireland.

With the lines between entertainment and gambling increasingly blurred, especially online, what may look like harmless fun can still involve risk, money and chance in ways that affect young developing brains. Research commissioned by the GRAI and conducted by the Economic and Social Research Institute (ESRI) found that children who gamble are twice as likely to develop a gambling problem as adults.

Anne Marie Caulfield, CEO of the GRAI said: “We have launched this campaign to help parents start an important conversation about the risks of underage gambling. Children and young people are among the most at-risk members of Irish society when it comes to gambling exposure and harm. Children’s brains are still developing the judgement and impulse-control systems used to weigh up risk, which makes gambling appealing to them.

“With online gambling available at any time of the day, it is easy for the warning signs to be hidden. The guidance the GRAI developed with the HSE Addiction Services sets out some of the key behavioural signs to look out for in your child.”

The post GRAI Launches New Campaign Helping Parents to Spot the Signs of Underage Gambling appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Amusnet Launches VIP LIVE Roulette, Bringing a Refined Experience to Live Casino Players

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Amusnet has launched VIP LIVE Roulette, a new addition to its Live Casino portfolio, offering a premium European roulette experience designed for players who prefer higher stakes, greater comfort and a sophisticated gaming environment.

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VIP LIVE Roulette joins Amusnet’s growing Live Casino portfolio, further strengthening the company’s offering with a title that balances timeless gameplay with contemporary player preferences. As operators continue to expand their live casino proposition, the game provides an opportunity to appeal to high-value audiences looking for an elevated roulette experience that combines premium presentation, seamless gameplay and greater flexibility at the table.

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The post Amusnet Launches VIP LIVE Roulette, Bringing a Refined Experience to Live Casino Players appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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