Esports organization OG has revealed troubling financial issues despite maintaining multiple high-profile crypto sponsors.
OG is a household name in esports, fielding teams across six different esports with a massive trophy cabinet in its mainstay of Dota 2. However, despite being one of the winningest organizations in gaming history, the company is still burning capital in an attempt to stay afloat. Its 2024 financial report revealed that it had earned only €836,877 in revenue with over €3 million in staff costs. The financial report also expresses worries about the company’s potential future.
In response to 2024’s troubling financial results, OG is currently looking to expand its roster of sponsors with an emphasis on betting. However, its existing partnerships may be difficult to top.
The list of OG sponsors includes Red Bull, Socios, Secret Lab, and Valhalla.Game.
Red Bull is the company’s headline sponsor and has been with the team for close to a decade. The energy drink company was present for both of the team’s International wins, where it earned just under $27 million in combined prize money. Red Bull has remained the team’s primary sponsor ever since.
Image Credit: OG
Socios is a fan app where users can purchase a form of cryptocurrency tied to the team. The OG fan token currently trades for around $5. Secret Lab manufactures high-end gaming furniture and is best known for it’s oversized chairs. Valhalla.Game is a Web3 combat MMO based on $FLOKI, a proprietary cryptocurency.
In the statement, OG notes its lack of a betting sponsor while also acknowledging it as a potential source of revenue. It’s also looking to incorporate more Asia-oriented sponsors with its expansion into Honor of Kings.
“From a sponsorship perspective, while certain high-value verticals such as betting and cryptocurrency, traditionally strong revenue contributors, remain unfilled due to market conditions, our expansion into China, Southeast Asia, and mobile gaming has unlocked access to entirely new categories,” says the financial statement.
Betting sponsors have grown much more common in the esports space, and even some of the industry’s biggest names have flirted with the industry. With OG so deep in the red, it seems inevitable that it will turn to the gambling space to help even out its balance sheet.