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  • Writer's pictureMatt "Maverick" Reilly

Frost Esports 2023 Transparency Report

The Importance of Transparency in Esports


Introduction

In the esports industry, volatility is a constant, particularly in the Tier 2 and Tier 3 segments where Frost Esports primarily operates. This sector, dynamic and fiercely competitive, faces unique challenges: fluctuating game popularity, involvement or lack of involvement from developers, and the continual emergence of new teams and orgs. These factors create an environment that is both exciting and unpredictable, demanding agility and strategic foresight from those who navigate it.


For organizations like Frost Esports, thriving in this landscape hinges on cultivating two fundamental values: trust and transparency. These are not merely ethical choices; they are the bedrock upon which strong, enduring relationships are built - with staff, the wider community, and the teams that participate in our events. In the T2/T3 space, where resources are often more constrained and the spotlight less intense than in top-tier leagues, the importance of these values is magnified. Trust and transparency become the cornerstones that support stable operations and foster loyalty among community members.


At Frost Esports, our commitment to these principles is unwavering. We recognize that maintaining transparent practices in every aspect of our operations - from financial management to tournament organization - is essential. It ensures that our staff feel valued and heard, that the teams who compete in our events trust the fairness and integrity of the competition, and that the community at large views us as a reliable and honest entity. In an industry where unpredictability is the norm, our dedication to trust and transparency is what steadies our ship, guiding us through both calm and stormy waters.


Goals of the Report

This Transparency Report is crafted with the purpose of enhancing community trust and providing an open window into the inner workings of Frost Esports. In an industry where clarity is often clouded by the fast-paced nature of competition, we aim to peel back the layers, offering a candid view into the inner workings of our organization. This initiative is more than an exercise in accountability; it's an embodiment of our commitment to maintaining an environment of transparency and trust. By openly sharing key aspects of our operations – from financial details to tournament statistics and community engagements – we intend to establish a new standard of openness in esports.


The driving force behind this report is to demonstrate how Frost Esports has created a pillar of stability in an otherwise volatile industry. Our approach contrasts starkly with the norm in esports, where operational transparency is not always given and information is hidden behind ego’s and NDA’s. We believe that by shedding light on our practices, strategies, and the challenges we navigate, we can not only bolster confidence among our community but also inspire other organizations to follow suit. This report, therefore, is not just a reflection of our current state but a testament to our ongoing efforts in building a sustainable and ethically sound esports ecosystem. Through this disclosure, we aim to reinforce the trust placed in us by our community, partners, and competitors, solidifying Frost Esports' reputation as a beacon of stability and integrity in the esports world.


 

Financials


Change in Ownership and Acquisition

In April 2023, a significant milestone marked the financial journey of Frost Esports: the acquisition by L8TENCY, LLC. This change in ownership heralded a new era for Frost Esports, bringing fresh perspectives, strategies, and resources. The acquisition was more than a change in leadership; it represented a renewed commitment to excellence and growth in the esports arena. The financial impact of this transition is evident in our operations, as reflected in the detailed financials that follow.


Financial Performance Overview

Our financials for 2023 are a testament to the resilience and adaptability of Frost Esports. Post-acquisition, we've seen a change in our financial strategy, focusing on sustainable growth and operational efficiency. The table below provides a month-by-month breakdown of our revenue, expenses, and profit/loss, offering a transparent view of our financial health and performance throughout the year. This data not only reflects our financial journey but also underscores our commitment to transparency and accountability in every aspect of our business.


Below is a table showing our Profit/Loss for each month. We do not include Prize Payouts in these numbers as it is essentially a wash. We have awarded $17,000 in prize money in 2023 alone.

Month

Revenue

Expense

Profit/Loss

January - March

No Data

No Data

No Data

April

​$250

$722

-$472.30

May

$500

$510

-$10

June

$500

$430

$70

July

$1150

$1010

$140

August

$500

$480

$20

September

$900

$1120

-$220

October

$800

$920

-$120

November

$1082

$545

$557

December (Projected)

$500

$480

$20

Year-To-Date

$6,182

$6,217

-$35


Expense and Revenue Breakdown

To further explain our financial standing and performance in 2023, we have prepared a few graphs that break down our expenses and revenue by type.








Summary of Financials

Overview and Key Insights

The financial data provided offers a comprehensive view of Frost Esports' financial performance since its acquisition by L8TENCY, LLC in April 2023. The data reveals a journey of growth and strategic financial management, marked by several key insights:

  1. Initial Investment and Rebranding: The initial months post-acquisition show significant investment, particularly in rebranding and event organization. This initial expenditure set the foundation for future growth.

  2. Revenue Streams: The primary sources of revenue include earnings from sponsorships and events. Regular contributions from sponsors like Trolli, and event-related income, have been crucial in maintaining a steady flow of income.

  3. Expenses: The major expenses include event payouts, production costs, and marketing. These are necessary expenditures that drive the quality and appeal of Frost Esports' tournaments.

  4. Profitability Trends: After the acquisition, there's a clear trend towards increased profitability, especially noticeable in the latter half of the year. The positive profit/loss in months like June, July, and particularly November, indicates successful financial management.

  5. Strategic Use of Profits: The significant profit in November is a key highlight, demonstrating the ability to generate surplus revenue. This profit is planned to be reinvested in December events, indicating a proactive approach to using financial gains to fuel future growth.

Conclusion

Frost Esports has demonstrated effective financial stewardship since its acquisition by L8TENCY, LLC. The ability to balance expenses with income from diverse sources like sponsorships and events has been pivotal in establishing a stable financial base. The strategic reinvestment of profits, especially the utilization of November's gains for December events, reflects a forward-thinking approach crucial in the dynamic esports industry. Going forward, maintaining this balance of expense management and active revenue generation will be key to sustaining and scaling Frost Esports' operations



 

Tournaments


Flagship Event Series: Blizzard and Whiteout

Since their inception, our flagship weekly event series, Blizzard and Whiteout, have become cornerstones of the Frost Esports tournament roster. Blizzard, our 3v3 Rocket League event approaching 3 years of weekly events, and Whiteout, a 5v5 Valorant series with almost 2 years of weekly events, have not only been mainstays but also symbols of our commitment to providing consistent, high-quality competitive experiences. Their longevity is a testament to their popularity and the trust the community places in Frost Esports. These events have evolved over time, adapting to player feedback and industry trends, ensuring that they remain at the forefront of the esports scene.


Introduction of Smu5h Partnership

A significant milestone in 2023 was the launch of our partnership with Smu5h for the Super Smash Bros. Ultimate (SSBU) event series in August. This collaboration has been a resounding success, effectively doubling our weekly player participation. The Smu5h series, with its fresh format and engaging gameplay, has not only attracted a new segment of players but has also invigorated the entire Frost Esports community. It represents our ongoing efforts to diversify our event offerings and reach wider audiences.


Frostbite 1v1 Weekly Rocket League Series

Over the summer, we also ran the Frostbite 1v1 weekly Rocket League series for 20 weeks. This series offered a unique take on the Rocket League experience, focusing on individual skill and strategy. The Frostbite series garnered significant attention, drawing in players eager to test their skills in a more personal, high-stakes environment. This series underscored our ability to innovate within our existing game portfolio, keeping our event offerings fresh and engaging.

Below you will find a snippet of our turnout stats broken down by month as well as by event:



Summary of Tournament Registration Stats

Overview

Frost Esports has demonstrated remarkable growth and engagement in its event series throughout 2023. The data from our flagship weekly events, Blizzard (3v3 Rocket League) and Whiteout (5v5 Valorant), along with the newly introduced Smu5h series in partnership with Smu5h and the Frostbite 1v1 Rocket League series, showcase this success.


Key Insights

  1. Total Player Participation: Across all events, the total number of attendees in 2023 was 15,548, indicating strong and consistent community engagement.

  2. Total Prizes Awarded: The total prize money awarded in these events amounted to $16,700, reflecting our commitment to rewarding competitive excellence and contributing to a vibrant esports ecosystem.

  3. Event-Specific Highlights:

    1. Blizzard: This series saw a total of 5,924 players participate throughout the year, solidifying its status as a premier Rocket League event.

    2. Whiteout: Attracting 4,145 participants, Whiteout has proven to be a significant Valorant event, offering intense competition.

    3. Smu5h Series: Launched in August, the Smu5h series quickly doubled weekly player participation, bringing in a total of 3,155 players, a testament to its immediate impact and popularity.

    4. Frostbite: Over the summer, the Frostbite series added a unique flavor to our Rocket League offerings, drawing in 596 participants in its 20-week run.

  4. Monthly Trends:

    1. The monthly average of total participants across all events was 1,413, showcasing consistent player interest and involvement.

    2. Monthly prize amounts varied, with notable peaks aligning with larger events or special series.

Conclusion

The 2023 tournament statistics reflect Frost Esports’ ability to host engaging and popular events, catering to diverse gaming communities. The successful introduction of the Smu5h series and the sustained popularity of Blizzard and Whiteout demonstrate our adaptability and commitment to providing top-tier competitive experiences. The significant amount of prize money awarded underlines our investment in the esports community. These achievements set a strong foundation for future growth and continued success in the esports arena.


 

Social Analytics


Sustainable Social Media Growth in Esports

In the fast-paced world of esports, sustainability isn't just advantageous – it's essential. For Frost Esports, this means going beyond fleeting trends to establish a lasting and adaptive digital presence. Our approach is rooted in creating enduring relationships with our audience, fostering community engagement, and ensuring relevance in an industry marked by rapid evolution. This strategy is not only about maintaining our visibility but also about deepening the connections our fans have with the esports community. It's a commitment to a narrative that resonates and engages, laying the foundation for sustained growth and loyalty.


As we delve into our 2023 social media statistics, you'll see a reflection of this strategy's impact. The forthcoming data in the subsequent sections will paint a vivid picture of our achievements and challenges across platforms like Discord, Twitter, and Twitch. These numbers tell a story of strategic engagement, audience growth, and the strengthening of our digital footprint in the esports landscape. This summary is a testament to our understanding of sustainable growth in social media, showcasing how our consistent and mindful approach has propelled Frost Esports to new heights of digital engagement and community building.


Overall Social Media Stats

Below you’ll find a breakdown of these stats:



  1. Discord Engagement:

    1. Total Discord Followers: Frost Esports concluded the year with 11,545 Discord followers, demonstrating substantial growth and active community engagement on this platform.

  2. Twitter Presence:

    1. Total Twitter Followers: The Twitter following grew to 7,531, reflecting increased brand visibility and audience reach.

    2. Average Twitter Impressions: The monthly average of Twitter impressions was approximately 116,450, indicating a strong and consistent content reach to followers.

    3. Total Twitter Clicks: The total number of clicks on Twitter content throughout the year was 35,361, highlighting effective engagement and audience interest.

    4. Average Twitter Engagement: The average engagement rate on Twitter was about 2.78%, showcasing a healthy level of interaction with the audience.

  3. Twitch Platform:

    1. Total Twitch Followers: The year ended with 9,348 Twitch followers, underscoring growth in viewership and platform popularity.

    2. Average Twitch Concurrent Viewers (CCV): The average CCV was approximately 24.83, indicative of a steady and engaged viewer base for live streams.

Conclusion of Data: Strategic Shift in Social Media Approach

The end of 2023, specifically from October to December, marked a significant shift in Frost Esports' social media strategy, a change underscored by the data. Faced with increasing operational costs and the need to optimize resources, we made a deliberate decision to transition from a focus on the quantity of content to prioritizing quality. This pivot was not just about adjusting to financial realities; it was about redefining what effective engagement means for us and our community.


This shift resulted in a reduction in the volume of posts across our platforms, but it brought with it a surge in content quality and audience engagement. By concentrating on producing more impactful, engaging content, we were able to lessen our workload while simultaneously enhancing the value of each interaction with our audience. This change is reflected in the steady numbers of followers and engagement rates during these months. It was a move that not only addressed our immediate operational challenges but also set a new standard for how we approach content creation. The data from this period reaffirms our belief that quality trumps quantity, especially in an environment as dynamic and content-rich as esports.


This shift in our social media plan is a clear indication of our agility and commitment to excellence. It demonstrates that Frost Esports is not only capable of adapting to changing circumstances but also dedicated to continually finding ways to create and share content that resonates deeply with our audience. Our experience in the final quarter of 2023 has solidified our approach to social media engagement, ensuring that despite operational challenges, we remain focused on delivering outstanding and meaningful content to our community.


 

New and Existing Partnerships/Sponsorships


A Strong Foundation and New Alliances

At the core of Frost Esports' continuous growth in the esports arena lies a strategic foundation built on strong partnerships. These collaborations, both longstanding and newly formed, have been instrumental in propelling our growth, expanding our reach, and enriching the esports experience for our community. The synergy created through these partnerships has not only bolstered our event series but has also significantly contributed to the vibrancy and dynamism of the esports landscape. Our alliance with brands and organizations reflects a shared vision: to elevate the esports ecosystem, fostering innovation and excellence. This commitment to collaborative growth underscores the essence of our approach – one that values mutual progress and the collective elevation of the industry.


A Flagship Partner: League Trolli

Our flagship partnership with League Trolli/Challonge stands as a testament to this philosophy. This 3 year collaboration, continuing into 2024, has been a cornerstone of our operational success, playing a vital role in enhancing the quality and reach of our tournaments. Through this alliance, we've been able to streamline event organization, engage a wider audience, and offer a more polished and competitive experience to participants. This relationship exemplifies how Frost Esports values and nurtures long-term partnerships, recognizing their role not just as sponsors or collaborators, but as integral contributors to the esports narrative. As we continue to evolve and expand our horizons, the blend of these longstanding relationships and fresh alliances is pivotal, showcasing our ability to maintain a balance between stability and innovation in our network of partnerships.


New Collaborations

Smu5h: Strengthening SSBU Events

Our partnership with Smu5h, initiated in August, marked a significant step in enhancing the Super Smash Bros. Ultimate (SSBU) event scene. By contributing to their prize pool and leveraging their expertise in SSBU, we've successfully uplifted the quality and appeal of weekly SSBU events. This collaboration has brought much-needed stability and consistency to the SSBU space, aligning with our high standards for event organization and community engagement.


The success of this partnership, which will continue into 2024, exemplifies our commitment to strategic alliances that not only enhance our event offerings but also strengthen specific gaming communities.


Playchart: Innovating with the Frostbite Series

Playchart's involvement in the funding and development of our 1v1 Rocket League Frostbite series has been a game-changer. As a new player in the esports domain, Playchart's support has been instrumental in testing and successfully executing this event format.


Playchart's periodic and strategic funding of new projects and events within Frost Esports aligns with our vision to continuously explore and introduce fresh, engaging tournament experiences. This collaboration is a testament to our forward-thinking approach in esports event management.


RivalSeriesGG: Boosting the Blizzard Series

The collaboration with RivalSeriesGG, a new community and league in the Rocket League scene, is set to accelerate their presence in the esports world. Our strategic partnership for the next three months involves RivalSeriesGG funding the broadcast costs for our weekly Blizzard series, enhancing production quality and viewer experience.


This partnership underscores our ability to form alliances that not only benefit our operations but also support emerging entities in the esports industry, fostering mutual growth and community development.


Hydro Flask: A Corporate Alignment with Core Values

The partnership with Hydro Flask represents our first venture into corporate collaborations. Chosen for their alignment with our core values of Transparency, Honesty, and Community, Hydro Flask is poised to be a key partner in our journey ahead.


Hydro Flask's involvement goes beyond traditional sponsorship, resonating with our ethos and supporting our mission to build a transparent, honest, and community-focused esports environment. Their commitment as a cornerstone of Frost Esports partnerships into 2024 marks a significant milestone in our organizational growth and brand alignment strategies.


Strategic One-Off Partnerships

Deleted XD, LAGr Gaming, Valour App: Enhancing Event Value

Throughout the year, Frost Esports engaged in several one-off strategic partnerships with notable esports brands such as Deleted XD, LAGr Gaming, and Valour App. These collaborations were primarily focused on boosting prize pools, thereby elevating the attractiveness and competitive stakes of specific events or series. For instance, Deleted XD's contribution significantly enhanced the prize offering of our 100th Rocket League Weekly tournament, drawing more participants and increasing viewer engagement. Similarly, partnerships with LAGr Gaming and Valour App brought additional resources and excitement to our 50th Valorant event, enriching the overall experience for both players and spectators.


These one-time alliances demonstrate Frost Esports' adeptness in identifying and capitalizing on opportunities that align with our goals and enhance our event offerings. By selectively partnering with these brands, we not only augmented the value of our tournaments but also showcased our ability to create mutually beneficial relationships, enhancing the esports ecosystem as a whole.


The Pivotal Role of Partnerships in Frost Esports' Journey

As we reflect on the year, it's evident that the diverse tapestry of partnerships, both new and existing, has been instrumental in driving the growth and success of Frost Esports. From the long lasting collaboration with League Trolli to the exciting new alliances with Smu5h, Playchart, RivalSeriesGG, and Hydro Flask, each partnership has contributed uniquely to our expansion and growth. These collaborations have not only amplified our event offerings and strengthened our operational capabilities but have also played a significant role in elevating the overall esports experience for our community.


Our strategic one-off partnerships with esports entities like Deleted XD, LAGr Gaming, and Valour App further exemplify our dynamic approach to collaboration. By boosting prize pools and adding value to our events, these partnerships have enhanced the competitive spirit and engagement of our tournaments. They represent our ability to adapt and respond to opportunities that align with our mission and values.


In conclusion, these collaborations are more than mere business transactions; they are integral to the community-building and innovative spirit of Frost Esports. Each partnership, whether long-term or strategic, contributes to a shared vision of elevating the esports ecosystem. As Frost Esports continues to evolve and shape its path forward, these alliances will remain a cornerstone of our strategy, underscoring our commitment to not just succeed as an organization but to also contribute meaningfully to the broader esports landscape. Our journey, enriched and supported by these partnerships, is a testament to the power of collaborative growth and innovation in the dynamic world of esports.


 

Obstacles and Hurdles


Navigating Challenges in Esports

Navigating various hurdles is an integral part of an organization's journey towards success. This section of the report delves into the key challenges that Frost Esports has encountered and addressed over the past year. We will explore the competitive dynamics with other organizers, highlighting both collaborative successes and the impacts of combative mentalities. The report will also touch upon the complexities of dealing with game developers, particularly focusing on the communication challenges with Psyonix/Epic Games and Riot Games, and how these have influenced the stability and growth of our fanbase and events. Lastly, we will discuss our efforts in diversifying revenue streams, moving beyond our current event-focused model to implement multiple financial strategies in 2024. Each of these subsections not only reflects the obstacles we have faced but also underscores our strategic responses and adaptations, demonstrating Frost Esports' resilience and commitment to excellence in the competitive esports landscape.


Competition with Other Organizers: Collaboration vs. Combative Approaches

The Power of Collaboration in Esports

Frost Esports has consistently demonstrated the immense value of collaboration in the esports industry, recognizing that partnerships can extend far beyond the realm of competition to foster a vibrant, inclusive community. Key alliances like our collaboration with Smu5h transformed the Super Smash Bros. Ultimate event scene, marrying our business pillars with their deep game knowledge and event skills, thus significantly enhancing player participation and bringing stability to the SSBU space. This synergy has not only benefited both brands but has also positively impacted the broader gaming community. Similarly, our strategic partnership with Playchart in the Frostbite series and the involvement of RivalSeriesGG in our Blizzard series showcase how joint efforts can lead to innovative event formats and improved production quality, elevating the experience for participants and audiences alike.


Moreover, collaborations such as our corporate partnership with Hydro Flask, aligning with our core values of transparency, honesty, and community focus, go beyond traditional sponsorships, resonating deeply with our brand. These, along with strategic one-off partnerships with entities like Deleted XD, LAGr Gaming, and Valour App, have not only enhanced the value and competitive spirit of our tournaments but also demonstrated our ability to forge mutually beneficial relationships. Such collaborations solidify Frost Esports' commitment to shared progress and the unifying power of esports, proving that working together not only achieves individual organizational goals but also contributes significantly to the growth and prosperity of the entire esports community.


Addressing Combative Mentalities

In the esports industry, where collaboration and fair competition should be the norm, it's unfortunate to encounter organizers who adopt combative and unethical practices. Frost Esports recently faced such a situation with an organizer who approached us with partnership proposals on two occasions. Both offers were assessed but ultimately turned down due to their one-sided nature. The propositions not only lacked balance but also included elements beyond the organizer's capacity to deliver, considering their significantly smaller size and short time in the industry compared to Frost Esports. Furthermore, their history of slandering other organizers in the Valorant space directly contradicted our core business pillars of transparency, honesty, and community focus.


Such a mindset is not only counterproductive but also harmful to the esports competitive scene. After our refusal to engage in their proposed partnership, this organizer resorted to underhanded tactics aimed at undermining our operations. They began hosting events on the same dates as ours, deliberately creating scheduling conflicts. More concerning was their approach to teams participating in our events, where they spread misinformation and falsehoods in an attempt to divert these teams to their own events. This behavior goes beyond competitive rivalry; it reflects a disregard for ethical standards and the overall health of the esports community.


Furthermore, their conduct on social media, involving the creation of multiple accounts to harass and disparage our brand, only adds to the unprofessionalism. These accounts are not only used for harassment but also to artificially inflate their social media engagement, creating a false impression of popularity and support. Such tactics are deceptive, create a toxic environment, and are entirely against the spirit of fair play and integrity that should be at the heart of esports.


This situation is a stark reminder of the challenges faced in maintaining a positive, ethical environment in esports. It underscores the importance of remaining vigilant and true to our values, even when confronted with such adverse behavior.


Our Stance and Response to Combative Mentalities

Commitment to Transparency and Honesty

Frost Esports stands firm in its commitment to transparency, honesty, and true collaboration, values that are the bedrock of our operations and community engagement. In an effort to maintain openness with our community and stakeholders, we will be instituting regular transparency reports. These reports, issued every few months, provide a candid look behind the scenes at Frost Esports. They cover a range of topics from financials and tournament statistics to partnership details and operational challenges. This initiative is part of our ongoing effort to ensure that our community is well-informed and engaged with the realities of our organization. It reflects our belief that an informed community is a strong community, and it reinforces our pledge to operate with integrity and openness at all times.


Opposition to Unethical Practices and Focus on Sustainability

In light of the combative and unethical practices employed by certain competitors, Frost Esports strongly opposes such conduct, recognizing its detrimental impact on the esports community. These toxic business practices not only undermine the spirit of fair competition but also erode the trust and integrity that are vital to the esports ecosystem. While we hope for a change in the behavior of these organizations, Frost Esports remains resolute in our devotion to sustainability, a principle that ensures our longevity and influence in the esports world. Our sustainable approach, rooted in ethical practices and community-centric values, positions us to outlast any organization that chooses short-term gains over long-term stability and respect. We believe that such detrimental practices are self-defeating and that organizations engaging in them will inevitably face the consequences of their actions. Frost Esports, meanwhile, will continue to thrive and set a positive example in the esports industry, guided by our unwavering commitment to our values and the well-being of our community.


Navigating Game Developer Changes: Challenges and Commitments

Instability Due to Lack of Communication from Psyonix/Epic Games and Riot Games

The esports landscape often faces instability due to the varying levels of communication from game developers, a situation Frost Esports has navigated with both resilience and adaptability. In the case of Rocket League, managed by Psyonix/Epic Games, the lack of consistent communication has led to uncertainty and instability among its most devoted fanbase. This inconsistency in updates and information flow makes it challenging for organizers like us to plan events and maintain a stable competitive environment. Similarly, Riot Games' implementation of their Premier Tournament system for Valorant has introduced turbulence in the existing competitive space. While the initiative aims to structure the esports scene, its introduction has caused disruptions and uncertainty, particularly among Tier 2 and Tier 3 (T2/T3) event organizers and players, who are still adjusting to the new landscape and trying to understand their place within it.


Frost Esports' Commitment to Open Communication and Collaboration

Despite these challenges, Frost Esports remains committed to open communication and is actively seeking to collaborate directly with Riot Games to bolster the T3/T2 Valorant space. We believe in the importance of providing a clear path-to-pro for players, one that extends beyond merely increasing gameplay and focuses on nurturing talent through structured, well-organized events. Our goal is to work alongside Riot Games to create an ecosystem that not only supports the growth of players at the grassroots level but also offers them a transparent and accessible route to professional play. By fostering direct collaboration with game developers, we aim to contribute to a more stable and nurturing environment for the esports community. This approach aligns with our philosophy of building a sustainable esports ecosystem, where open communication and collaboration are key to ensuring the long-term health and prosperity of the competitive scene.


Building Diverse Revenue Streams

Current Event-Focused Revenue Model

Frost Esports' current revenue model is primarily focused on events and tournament sponsorships. This model, while effective, hinges largely on the success of individual tournaments and the financial support of sponsors. Revenue is generated directly through event registrations, sponsorships, and sometimes, merchandise sales linked to these events. While this model has served us well, providing a steady stream of income and supporting the growth of our tournaments, it also presents certain limitations. Relying heavily on the event-centric approach means that fluctuations in the esports market or changes in sponsorship relationships can significantly impact our financial stability. Recognizing this, we have identified the need to diversify our revenue streams, ensuring a more stable and sustainable financial foundation for our organization.


Plans for Diversification and Events in 2024

Looking ahead to 2024, Frost Esports is poised to implement two new revenue streams to complement our existing model. First, we are set to work directly with a high-quality peripherals brand. This partnership is not just about securing another sponsor; it's about creating a symbiotic relationship where we can offer our community top-tier gaming accessories while also generating revenue. This approach aligns with our commitment to providing value to our players and fans, offering them products that enhance their gaming experience. Secondly, we are looking to tap into revenue through content and social media. Recognizing the vast potential of digital content, we plan to create engaging, high-quality content that appeals to our audience, opening up avenues for monetization through platforms like YouTube, Twitch, and other emerging digital mediums. This strategy will not only diversify our revenue streams but also strengthen our brand presence and deepen our engagement with the esports community.


We are also in talks to add a new, larger event series in collaboration with another Strategic Partner. Contracts are not finalized for this but once they are, we will make an announcement. This partnership will bring consistent, high prize pool events to the community which has been requested hundreds of times via our several rounds of feedback!


Navigating Hurdles with Strategic Foresight

In reflecting on the past year, Frost Esports recognizes that the challenges faced, while demanding, have been pivotal in driving our strategic growth and reinforcing our core values. Our encounters with competitive pressures and the complexities of dealing with game developers have underscored the importance of ethical conduct, clear communication, and adaptability in the esports landscape. These hurdles have not only tested our resilience but have also provided valuable lessons in navigating the industry's dynamic environment. Our commitment to maintaining a player-focused, transparent, and honest approach, especially in the face of combative mentalities, has strengthened our position and reputation within the esports community.


Looking ahead, the introduction of diversified revenue streams in 2024 marks a significant step towards ensuring financial stability and operational resilience for Frost Esports. This strategic expansion into new financial areas, including peripheral partnerships and content monetization, is aimed at building a more robust and sustainable business model. These initiatives, combined with our ongoing dedication to excellence and innovation, set the stage for continued success and growth. As we move forward, we do so with the confidence and knowledge gained from overcoming past challenges, ready to embrace future opportunities with the same commitment and passion that has always been the hallmark of Frost Esports.


 

Reflecting on a Year of Growth and Looking Ahead


As we close this comprehensive report, we reflect on a year marked by significant achievements and valuable lessons for Frost Esports. Our financial and player statistics paint a picture of robust growth and active engagement, with our diverse tournaments attracting a substantial number of participants and our financial management ensuring stability and progress. The shift in our social media strategy, focusing on quality over quantity, has reinforced the importance of creating content that resonates deeply with our audience, enhancing our brand presence and community connection.


Central to our success has been our emphasis on collaboration, transparency, and honesty. In an industry where competitive pressures and complex dynamics are prevalent, we have consistently chosen to engage in practices that uplift the entire esports ecosystem. Our approach, contrasting sharply with the combative and unethical practices encountered in the industry, highlights our commitment to maintaining a positive and fair competitive environment. We believe in building relationships based on trust and mutual respect, whether with partners, players, or our dedicated community.


Our community remains at the heart of everything we do. As we move forward, our focus on sustainability, both financially and in terms of our community engagement, will continue to guide our decisions and strategies. We are excited to explore new revenue streams and collaborations in 2024, which will not only reinforce our financial foundation but also provide new opportunities to engage and delight our audience.


Looking ahead, Frost Esports is poised for even greater achievements. We are committed to building on the foundations laid this year, embracing both the challenges and opportunities that come our way. With a steadfast commitment to our core values and an unwavering focus on innovation and community, we are excited to continue our journey in the esports landscape, setting new benchmarks and contributing to the growth and vibrancy of this dynamic industry.


The future for Frost Esports is bright, and we are ready to embrace it with enthusiasm and optimism.








If you’ve made it this far, I thank you for your care for our brand and your passion for Esports. I have been navigating the esports industry for almost a decade now and I have spent every moment of that time in the grassroots space. This is my home. The drive and passion scattered across production staff, admins, owners, content creators and competitors is incredible! Each game's community is so different from the next and it is exhilarating learning how to navigate each one.
Those that have worked with me know how important transparency is to me personally. I believe honesty and communication are the foundation of any successful brand, especially in esports. This is why I don’t hide behind internet names and PFP’s that aren’t my face. I believe if I can build trust between myself and the community, they will trust the brands I work with as well.
The inspiration for this report stems from the sheer lack of honesty and transparency in esports today. Between Devs, T1 orgs and even Community Event Organizers, the lack of trust and massive ego’s are getting out of hand. I promise that any brand I work with or on, will carry Trust and Honesty as 2 of its most important Pillars. I will continue to do my best to build the scene up and make the Grassroots, Bubble and T3 spaces the best it can be!
I’ll see you out there…

Matt “Maverick” Reilly

Director of Operations | Frost Esports

Founder | L8TENCY, LLC


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