Before you run to social media and shout from the mountain tops about how halo is king again , let’s do some numbers.
272 teams X $300 = 81,600
5 Sponsors at best 20k Dollars each = 100k
10 Vendors at $500 = 5k
Total = 186,600 Dollars
That should have been the budget for the event now let’s get to some expenses
Total Cash Payout = 350k + 5k FFA
Streamers ( drops ) 20k each , 4 total = 80k
Staff / Production 100 employees at $20 an hour , let’s say 30 hour event 100x20x30 = 60k
Venue - 20k for the weekend
Equipment - Monitors , Xbox’s , PCs , Cameras , EXT - lets go low 20k
Expenses 535,000 Dollars
Negative -348,400 Dollars
I manage major events for the FGC so I know a little bit about hosting giant events. Astro and Monitor Vendors will typically lend their equipment for marketing their product. They will usually not add to the prize pot but even if they did , we are still not cash flow positive. I doubt all the talent made $20 an hour only either , so lets offset those cost.
I understand Halo put up some giant numbers , but similar to MLG back in the day , they are burning through cash , bigger prize pots does not mean higher registration numbers, or interest in your game. PUBG paid out $4,340,000 USD, over the weekend and had a fraction of Halo’s viewership. Halo has a casual audience problem , their user base is dropping fast.
Microsoft didn’t become a billion dollar company operating in the negative , this is a warning , and why I don’t like publisher money right away, the game has not proven itself to bring in enough cash just yet. Fortnite paid out 3 million after they made 3 billion , Pubg paid out 4 Million after making 1 billion , first you make a game that casuals will enjoy and this will fund your ESPORTS. Halo is doing it backwards.