Danish tournament organiser BLAST has restructured its financial structure to greater benefit its partner organisations for BLAST Premier.
The company cites COVID-19’s impact on the esports industry as the reason behind the revision, hoping that the change “will help provide a more sustainable model for the broader industry.”
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BLAST has made the changes in agreement with its partner teams for its CS:GO circuit, though the specific figures have not been disclosed to Esports Insider at the time of writing. Participation fees paid to organisations will be increased and the prize money will be reduced, though the total sum paid by BLAST will remain the same.
Robbie Douek, CEO of BLAST, spoke on the decision: “We partner alongside the most progressive brands in esports, many of whom have also felt the impact of Covid-19. We believe this new structure will help sustain the broader ecosystem and ensure that we can all emerge stronger together.”
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In addition to the restrictions made in the agreements with partner teams, BLAST states that non-partner teams will benefit from the 2021 season onwards through a participation fee being paid to organisations for each tournament.
JMR Luna, CEO of OG Esports, commented: “Investing in the ecosystem enables all organizations, whether new or established, to develop infrastructure around the players. This change is crucial for the long term sustainability of our ecosystem.”
Esports Insider says: BLAST rightly recognises the damage caused to organisations from COVID-19, though it’s likely not been easy on tournament organisers either. Regardless, without knowing the exact splits, it’s hard to fully judge this restructuring – though we’re not sure that the reduction in prize winnings being awarded to players will be received positively by everybody.