Esports Firms Mull Capping Players’ Salary At INR 2.5 Lakh To Keep Poaching At Bay

Top Indian esports companies including S8UL, Revenant Esports, GodLike Esports, Enigma Gaming and Global Esports, are reportedly considering a salary cap of INR 2.5 Lakh per month for players to prevent poaching during tournaments.

Last month, representatives from 15 esports organisations convened to address the issue, ET reported.

Player poaching, which means the act of recruiting a player under contract with another organisation, is deemed illegal due to its potential harm to companies, especially during crucial tournaments, leading to financial losses for the organisations involved.

In October 2022, TSM FTX India and GodLike Gaming engaged in a poaching dispute over a player named Arjun Mandhalkar, also known as Shadow.

Shadow, who served as the IGL for TSM FTX India, joined GodLike Gaming. TSM claimed that GodLike poached Shadow without an official buyout, alleging that GodLike contacted Shadow behind their backs while he was still under contract.

In a separate incident, Global Esports accused an unnamed organisation of attempting to poach one of their Valorant players. Expressing frustration on Twitter, Global Esports CEO Rushindra Sinha referred to the organisation attempting the poaching as “scums” in the industry.

Esports companies invest between INR 15-20 Lakh in activities such as running gaming boot camps, player training, team strategy development, branding management, travel expenses and ensuring player well-being. The departure of even one player not only impacts overall business strategy but also disrupts team gameplay and morale.

While players argue that capping salaries is unfair, they suggest that esports companies should explore high-value brand deals and innovative business avenues instead.

In December 2022, the government officially recognised esports as part of multi-sport events, granting it the same status as other offline/physical sporting events in the country, such as national-level tournaments.

The Department of Sports, under the Ministry of Youth Affairs and Sports, acts as the nodal agency for esports in India. According to Statista research from 2022, the overall prize money awarded at esports events held in India amounted to INR 15 Cr.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.