New Era of Esports: Resource Reallocation and Financial Crisis of Top Organizations

Amid global esports buzz over record numbers at the Esports World Cup 2026, a different reality quietly unfolds: Team Falcons, winner of The International 2026, withdraws from Dota 2, and 2026 LCK champion Dplus KIA faces difficulty finding a new owner while delaying player salaries. These two seemingly opposing events reveal a common picture: money in esports is not disappearing but shifting—toward major tournaments, commercially viable titles, and sustainably run organizations. The backdrop starts with the collapse of The International prize pool. In 2026, TI10 hit a record $40 million thanks to the community-funded Battle Pass system. By TI2022, it dropped to $18.9 million, and TI2023 fell to roughly $3.4 million. Recently, TIs remain in the low millions. The main cause lies in Valve's decision to revamp the Battle Pass, severing the link between item sales and prize pool. This is the biggest shock to the Dota 2 ecosystem, as the community could previously directly fund the premier tournament. Meanwhile, a new capital stream emerges from the Middle East. Esports World Cup 2026 in Saudi Arabia boasts a total prize pool of $75 million across dozens of titles. Saudi eLeague 2026 also draws attention with 37 clubs and over 4 million SAR in rewards. This state-backed investment creates a growth pole opposite Dota 2's contraction. However, not every organization capitalizes on this flow. Dplus KIA, the Korean League of Legends team that just won EWC 2026, is facing financial distress. Their LoL roster costs about 3 billion Won (~$2 million), but revenue lags behind. They delayed player salaries and are seeking a buyer. Top performance no longer guarantees survival—a costly lesson. Team Falcons made a strategic decision: exit Dota 2 after winning TI2025. Although they entered 18 titles at EWC 2026, reducing their portfolio suggests they prioritize titles with better commercial ROI or alignment with Saudi vision. 'We focus on long-term sustainability,' their statement hints at portfolio streamlining logic. On the flip side, Korea's LCK pioneers cost control. They introduced a salary cap and luxury tax to balance competition and ensure viability. This move reflects the reality that player salaries grew faster than revenue during the growth phase, pushing many organizations to the edge. The cap is not just a cut but a redistribution tool: high-spending teams pay tax to support the rest of the league. This shift makes the 'esports winter' narrative one-sided. In truth, money is being reallocated, not destroyed. Dota 2 prize pools shrink, but EWC grows; teams like Dplus KIA struggle, but financially sound ones thrive. The issue lies in the disconnect between operational costs and revenue generation. The lesson: esports is entering a maturation phase where on-field achievements are no longer the sole metric. A roster worth millions but lacking commercial value becomes a burden. Conversely, multi-title, well-capitalized, and efficiently run organizations will lead. Capital concentration in a few mega-events carries a risk of reduced diversity, but in the short term, it is the dominant trend. The esports race is no longer about who wins the most, but who lasts longest and leverages capital most intelligently. The upcoming transfer window will see more turbulence as organizations restructure and players seek safe harbors. Vietnamese fans can learn from these global developments to view the domestic market with a more realistic eye.