Tricked CEO: "Building and selling players can't be your only revenue model"
Tricked CEO Morten Jensen took to Twitter to assess the current state and prospects of the transfer market in CS:GO. He believes that now building and selling players cannot be the only source of income for an organization.
The head's statements came amid previously reported information regarding Copenhagen Flames not managing to find a buyer for their lineup, despite a relatively small buyout fee of €160,000.
I think the CPH Flames story paints a clear picture of where the csgo transfer market is at rn. I do firmly believe that we will get back to market numbers before covid, but it will take some time. So building and selling players can't be your only revenue model. The market has been inflated for quite some time because most player contracts work with a buyout that is salary + months left on contract + x2 factor. So when salaries get pushed over the top, then player values will automatically follow.
Many investors are still looking for ROI in esports and so far there are very few, if any, who have found a sustainable business model. This has reduced the cash flow between orgs dramatically, and it started declining even before covid hit in 2020. I think the market will self-regulate, and even tho it has been rough the last two years I still feel positive about this space. More tier 1 teams are investing in talent development, and this area will get increased attention in the future which is good for everyone.
Jensen added that under current circumstances, selling individual star players is unprofitable for any organization. As an example, he outlined AWPer Philip "Lucky" Ewald's case, whose departure to Astralis last summer jeopardized Tricked's prospects.