If George Geddes is right then those are some insane salaries that are not sustainable in the long run. If a market correction was to happen then it's best that it starts with EG cz they are the world champs. If they have to take a paycut to keep the industry afloat then no one else can say "I don't deserve this treatment". Also, AFAIK the EG CEO got fired/left recently. This could be the reason why. This looks like an industry-wise shift tbh and that EG guys are not getting fked over randomly.
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EG is right
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That is definitely the right call financially for both EG and for the esport in the long term
HOWEVER, how they handled the decision is entirely wrong.
Dropping this onto the team a few weeks after they just won you the biggest tournament ever, is just poor management.
If what I've seen about the salaries from reporters is correct, this pay cut would've been known weeks and even months in advance before dropping this on the players. EG didn't just suddenly realize "Oh shit we are gonna be out of money, time to let the team know", its likely been known for a while.
So in a situation like that, its the orgs duty to put the players+staff first and give them a heads up way sooner, do everything you can to accommodate what is an unfortunate but unavoidable decision, not do it they way they did. The way they handled it, the team woke up with 2024 in their sights as the undisputed best team in the world, and went to sleep wondering if they are even going to be the same team in the next few months
I think you overestimate the amount of mental damage a pay cut would do to these players, each of these players had long standings motivations to lift a trophy, they weren't playing for the bag
yeah the promise of a future pay cut would suck but it wouldn't be as big of a backstab as it was now.
It would've been a lot more understandable as a decision then vs now
I obviously can't speak for the players but in their position I'd figure itd suck for a bit and then the focus on champs continues
We don't know that for sure. EG very well could be a mid tier- high paying team salary wise. You would be surprised how incapable management people are in most sports. T1 leagues often overpay for trash players ( I am not saying EG players are trash, they turned out to be great but there's no denying they were the bottom feeders at the time of signing ). Just look at Manchester United player salaries and you would understand
thats because EG doesn't know how to manage and make profits off their roster, they won champs and the only thing they put out that would "make them money" is a shitty t-shirt
if they were a half competent org they would've been able to make a decent amount just off their player's and orgs new popularity after champs
- Supply/Demand - There are more players than there are spots in the franchised so there is no real need for them to splurge on superstars, especially if they think they can produce multiple Demon1s
- The orgs who have decent marketing teams are not making a profit either, like Fnatic or Sentinels. You or I, cannot sit here and judge on what strategy EG's parent company(Peak6 Investments) is making based on their balance sheets.. maybe they wish to cut down on costs due to completely different reasons, maybe some other vertical of business is not functioning
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