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  • Writer's pictureMatt "Maverick" Reilly

Frost Esports January 2024 Transparency Report

A Solid Foundation


Introduction

Kicking off 2024, Frost Esports is excited to present our January transparency report. This monthly series reflects our ongoing commitment to transparency, providing insights into our operations, finances, and growth strategies.

 

Financials


Expenses Breakdown:

  • Casters and Producers: Our commitment to high-quality event production led to expenses totaling $180, with $120 allocated for casters and $60 for producers. These investments were crucial for enhancing the viewer experience and maintaining the professional standard of our broadcasts.

  • Event Admins: An additional $40 was spent on event administration, ensuring that our events ran smoothly and efficiently, further solidifying our reputation for well-organized esports competitions.


Revenue Insights:

  • Trolli Partnership Earnings: A significant highlight of January was our earnings from the League Trolli partnership, which brought in $550 in revenue. This partnership, renegotiated for better terms, has proven to be a valuable and steady source of income, contributing positively to our financial landscape.


Financial Summary for January:

The start of the year saw Frost Esports managing a strategic balance between essential expenses and robust revenue streams. Our total expenses for production and event management amounted to $220, a figure that underscores our focus on quality and operational excellence. Meanwhile, our partnership with League Trolli alone generated $550 in revenue, not only covering our expenses but also contributing to our financial health. This positive revenue outcome, combined with the anticipation of further financial growth from new partnerships to be revealed in February, sets a promising tone for Frost Esports' financial journey in 2024.


This expected financial success has left us open to hire new staff, adding leadership, managers and social media staff to our growing roster of quality team members.


 

Partnerships


League Trolli Renewal:

January marked a significant milestone with the renewal of our partnership with League Trolli. This renegotiated agreement promises better margins, which we project will generate around $500 per month in revenue for Frost Esports. The continuation of this partnership not only underscores our ability to maintain and enhance long-standing relationships but also secures a steady income stream that supports our broader financial goals. The League Trolli agreement is pivotal in our strategy to provide continuous, high-quality esports content to our community.


Hot Pockets Partnership:

A new and exciting partnership with Hot Pockets introduces the "Hot Pockets' Pockets League" to our event roster. This monthly tournament, featuring a $1,000 prize pool, signifies a substantial enhancement in our tournament offerings. The additional revenue from this partnership enables us to invest in our admin team, upgrade our production quality, create engaging new content, and expand our staff. The Hot Pockets' Pockets League is poised to become a foundational event series within the Bubble and T3 scene, reflecting our commitment to elevating competitive play and community engagement.


SmU5h Collaboration:

January also saw the formalization of our partnership with SmU5h, a move that solidifies the stability and growth potential for our Super Smash Bros. Ultimate events. This collaboration leverages SmU5h's expertise and passion for the SSBU community, ensuring that our Smash events are both competitive and highly engaging. The official partnership with SmU5h is a testament to our dedication to diversifying our esports offerings and providing varied, high-quality competitive experiences to our community.


Summary of Partnerships

The start of 2024 brings a blend of renewed and new partnerships for Frost Esports, each contributing uniquely to our operational and financial landscape. The continued collaboration with League Trolli, combined with the exciting new partnership with Hot Pockets and the strategic alliance with SmU5h, underscores our proactive approach in fostering meaningful collaborations. These partnerships not only enhance our financial stability and event quality but also reinforce our position as a leader in the esports industry, dedicated to innovation, community engagement, and the growth of the esports ecosystem.


 

Team Updates


Leadership and Creative Direction:

We welcomed Alexyoshi as our new Creative Director. With an impressive background in brand and content strategy, Alexyoshi is set to guide our brand, content, and social media towards new heights of creativity and engagement. We unfortunately had to say farewell to Arctic, our Development Director. Arctic has been an asset to the leadership team, assisting us with planning and decisions during the last 10 months at Frost Esports. He remains active in our staff channels as a VIP and still weighs in on decisions when he has time.


Social Media and Content Team:

Understanding the critical role of social media in connecting with our community, we've brought on board two dedicated social media interns. Their fresh perspectives and energy are geared towards amplifying our online presence and engaging our audience with dynamic content.


Event Management and Analytics:

To enhance our event operations, we've hired another event intern and promoted a previous event assistant to Manager in our Rocket League Department, focused on supporting the seamless execution of our tournaments. Additionally, we've expanded our team to include professionals specializing in VFX (Visual Effects) and GFX (Graphic Effects), elevating the visual quality of our events and content. Two new staff members have also been tasked with managing our creators and assembling event analytics, ensuring that we maintain a data-driven approach to event organization and content creation.


Team Summary for January:

The strategic expansion of our team this January marks a pivotal step in Frost Esports' journey towards operational excellence and innovation. By broadening our expertise in key areas such as creative direction, social media, event management, and analytics, we are better positioned to deliver exceptional esports experiences. The addition of new roles and talents reflects our commitment to growth, community engagement, and the continuous improvement of our events and content.


 

Events and Operations


Blizzard Series:

This flagship Rocket League event saw an average of 180 participants and 57.75 teams, with an average viewership of 23.25. Despite the $264 in expenses, the series generated $200 in revenue. The slight shortfall reflects our continuous investment in quality and participant experience, culminating in a modest profit of -$64 for the month.


Whiteout Series:

Our Valorant series, Whiteout, averaged 77.5 participants and 15.5 teams. Remarkably, this series incurred no expenses this month, directly translating its $100 in revenue to profit. In January we made a strategic shift for leadership to manage our Valorant events directly. We noticed a strong dip in quality of events among the T3 scene and wanted to ensure our events did not fall into the same pits. This efficiency showcases our ability to optimize operations while maintaining engaging competitive environments.


Smu5h Series:

The Smu5h Series, a recent addition to our Smash events, attracted an average of 110 participants. With no expenses and $200 in revenue, this series stands out as a significant profit generator, contributing $200 to our financial health and highlighting the success of our strategic partnership with Smu5h.


Frostbite Series:

Our experimental 1v1 Rocket League series, Frostbite, made its return and brought in 51 participants and resulted in $6 in expenses against $50 in revenue. This venture demonstrates our willingness to explore new formats and yielded a positive profit of $44, underscoring the potential for growth in niche event spaces.


Operational Summary for January:

The detailed breakdown of our events this January provides insight into Frost Esports' operational dynamics and financial management. While the Blizzard series faced a small loss due to its larger scale and higher production costs, the overall event portfolio remained profitable, thanks to the strategic allocation of resources and effective revenue generation in other series. The introduction of the Smu5h Series not only diversified our event offerings but also proved financially advantageous, emphasizing the value of exploring new partnerships and event formats.


 

Social Media Engagement


Twitter Engagement:

Over the month, our Twitter account saw a slight decrease in followers, dropping by 51 to settle at 7,480 followers. Despite this dip, engagement remained relatively strong, with an engagement rate of 1.71% across 28 tweets, generating a total of 510 engagements and 29,900 impressions. This activity level indicates a consistent effort to engage our audience, even as we refine our content strategy to boost follower growth.


Discord Community Dynamics:

Our Discord community experienced a reduction in members, decreasing by 198 to total 11,347. The platform remains a hub for specific game-related interactions, with notable engagement in Rocket League, Valorant, and Super Smash Bros. Ultimate (SSBU) roles and alerts. Despite the decline, the server alerts for Rocket League and SSBU particularly underscore the active participation and interest in our event series among the community.


Twitch Streaming Insights:

Twitch showed positive growth, with an increase of 74 followers, bringing our total to 9,378. The average viewership for streams stood at 23, with peak viewers reaching 49 and unique viewers totaling 873 over 11 hours of streaming content. This indicates a healthy level of viewer engagement and interest in our live-streamed events, with 15,462 minutes watched indicating a dedicated audience.


Summary and Moving Forward:

January's social media engagement underscores the dynamic nature of community interaction across platforms. While Twitter and Discord experienced slight declines, the engagement levels and Twitch growth highlight areas of strong community connection and interest. Moving into February, Frost Esports plans to ramp up our social media efforts, focusing on increasing follower engagement on Twitter, bolstering our Discord community, and enhancing our Twitch streaming content. Our goal is to not only recover lost ground but to also explore new strategies for content that entertains, informs, and engages our audience more effectively. As we continue to adjust and improve our social media strategy, we remain committed to fostering a vibrant and engaged community across all our platforms. Stay tuned for more updates and exciting content in the coming months.


 

Frost Esports January: A Critical Analysis


Financials Analysis:

From an accountant or financial officer’s perspective, January's financial report reveals a nuanced picture of Frost Esports' fiscal health. The expenditures on casters, producers, and event admins, totaling $220, reflect a controlled investment in the quality and smooth execution of our events. While the Blizzard series showed a slight deficit of $64, indicating a potential area for cost optimization or revenue enhancement, the overall financial performance is bolstered by significant partnerships like League Trolli and the new Hot Pockets agreement. These partnerships, especially with projected increases in monthly revenue, position us well for future financial stability. However, the slight drop in Twitter followers suggests a need to reassess our social media strategy to ensure it aligns with and supports our financial growth goals. Going forward, a balanced approach to managing expenses while capitalizing on and expanding revenue streams will be crucial.


Partnerships Analysis:

From an operations director or marketing officer's standpoint, the partnerships outlined in January's report underscore Frost Esports' strategic acumen in forging relationships that enhance our operational capabilities and market presence. The renegotiation of the League Trolli agreement for better terms and the introduction of the Hot Pockets' Pockets League are testament to our ability to identify and cultivate partnerships that offer mutual benefits and align with our long-term growth objectives. These collaborations not only promise to elevate our financial outlook but also enrich our event portfolio, signaling a proactive approach to diversifying our revenue sources and enhancing our brand. The official partnership with Smu5h, ensuring stability for our Smash events, further illustrates our commitment to broadening our esports offerings. For sustained growth, focusing on leveraging these partnerships for cross-promotional opportunities and community engagement will be key.


Team Updates Analysis:

As an operations director, the team updates indicate a period of significant organizational development and strategic realignment. The departure of the Development Director and the hiring of a new Creative Director, alongside the expansion of our team with interns and specialized staff, suggest a concerted effort to strengthen our operational foundation and creative output. The promotion of an internal team member to Rocket League Event Manager reflects a commendable approach to talent recognition and development. These changes underscore a commitment to enhancing our operational efficiency and creative capabilities, which are essential for adapting to the evolving esports landscape. Moving forward, maintaining open communication channels within the team and ensuring the seamless integration of new members will be crucial for maximizing operational effectiveness.


Events and Operations Analysis:

From the perspective of an Events Director or Marketing Officer, the events and operations section highlights both the successes and areas for improvement in our event execution and audience engagement strategies. The steady participation in Rocket League events contrasts with the volatility seen in Valorant events, prompting a strategic shift to a biweekly format for the latter. This adaptability is commendable, as is the exploration of new gaming formats to maintain audience interest. The financial outcomes, particularly the profitability of the Smu5h series, demonstrate effective cost management and revenue generation. However, the Blizzard series' minor loss suggests a need for further analysis to optimize expenses without compromising event quality. Ensuring that all events, not just flagship series, contribute positively to our financial and engagement goals will be essential.


Social Media Engagement Analysis:

From the viewpoint of a Marketing Officer or Social Media Manager, January's social media engagement metrics offer critical insights into our online presence and community interaction. The decrease in Discord members and Twitter followers indicates areas for strategic reassessment, particularly in content strategy and community management. However, the growth in Twitch followers and consistent viewership numbers highlight a strong and engaged audience for our streamed content. These mixed results suggest a need for a more integrated social media strategy that leverages our strengths, such as live streaming engagement, while addressing areas of decline. Increasing content variety, enhancing interaction in Discord, and boosting Twitter engagement through targeted campaigns could drive better outcomes. Moving forward, leveraging analytics to understand content performance and audience preferences will be key to refining our social media strategy.



 

A Third Party Summary


Upon a close inspection of Frost Esports' January operations, financials, partnerships, team dynamics, events, and social media engagement, a nuanced yet critical perspective emerges, revealing both commendable achievements and areas in need of strategic refinement.


Financial Operations: Room for Optimization

The financial overview paints a picture of a company in the throes of balancing quality event production with prudent fiscal management. The slight deficit incurred by the Blizzard series versus the profitability of the Smu5h series highlights inconsistent financial outcomes across events. This inconsistency underscores a need for a more uniform approach to financial planning, with a sharper focus on cost control and revenue maximization across all events.


Partnerships: A Mixed Bag

While the renegotiation of the League Trolli agreement and the new partnership with Hot Pockets signal strategic wins, offering promising revenue avenues, they also raise questions about over-reliance on external partnerships for revenue. The sustainability of such a model, in the long term, necessitates a diversification of income sources beyond partnership agreements, urging a closer look at how internal assets can be leveraged for revenue generation.


Team Dynamics: Transition and Expansion

The departure of a key director juxtaposed with the hiring of new roles including a Creative Director, and the expansion with interns, suggests a period of significant organizational flux. While these changes hint at a forward-looking approach to growth and adaptation, they also reflect potential challenges in maintaining cohesion and clarity of vision amidst rapid expansion and role realignment.


Events and Operations: Adaptability vs. Stability

The operational dynamics, particularly the volatility in Valorant event turnout and the strategic shift to a biweekly system, highlight Frost Esports' responsiveness to engagement metrics. However, this adaptability raises concerns about long-term stability and the ability to foster consistent community engagement. The profitability of newer series like Smu5h, while positive, underscores the need for a more balanced and consistently profitable event portfolio.


Social Media Engagement: A Work in Progress

The mixed results in social media performance, with a drop in followers on key platforms like Twitter and Discord, juxtaposed against growth on Twitch, point to a disjointed social media strategy. This suggests a gap in effectively translating event success into broader community engagement and growth across all social platforms. The planned increase in content variety and engagement strategies for February indicates recognition of these issues but underscores a reactive rather than proactive approach to social media management.


Overall Reflection

For an organization navigating the complexities of the esports landscape, Frost Esports demonstrates a commendable blend of ambition and adaptability. However, this examination reveals critical areas for improvement: the need for a more cohesive financial strategy, leveraging internal assets for revenue, ensuring team stability amid expansion, achieving consistent event profitability, and forging a coherent, proactive social media strategy. As Frost Esports moves forward, the challenge lies not just in sustaining growth but in refining its operational, financial, and engagement models to build a more stable, integrated, and profitable organization.


 

Aiming for Sustainability


As a brand building around esports, our success is at the mercy of two variables; Developers and Community. One of those variables is completely out of our hands. Many of us have been hearing the words "Esports Winter" being used a lot lately. We are seeing layoffs left and right from our favorite developers, tech companies and media companies. We know that the tough times in Esports is just getting started, so our goal for this year is to stay sustainable. We will keep as close to green as we can, while still delivering strategic improvements in Content, Event Coverage and Tournament Operations.


As we move forward into 2024, Frost Esports remains dedicated to building on these foundations, exploring new opportunities, and delivering the best in esports experiences. Stay tuned for our next report for more updates and insights.


Matt “Maverick” Reilly

Director of Operations | Frost Esports

Founder | L8TENCY, LLC


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