Top esports companies in India, including S8UL, Revenant Esports, GodLike Esports, Enigma Gaming, and Global Esports, are contemplating the implementation of a salary cap at INR 2.5 Lakh per month for players. The move aims to curb player poaching during tournaments, a practice that has been a source of contention within the esports industry.
Representatives from 15 esports organizations convened last month to collectively address the issue, as reported by ET. Player poaching, involving the recruitment of players under contract with other organizations, is considered illegal due to its potential to harm companies, leading to financial losses, especially during crucial tournaments.
In a notable incident in October 2022, TSM FTX India and GodLike Gaming were embroiled in a poaching dispute over a player named Arjun Mandhalkar, also known as Shadow. The disagreement highlighted the need for regulations and ethical practices within the esports industry.
Global Esports CEO Rushindra Sinha expressed frustration on Twitter in a separate incident, accusing an unnamed organization of attempting to poach one of their Valorant players. Such incidents disrupt overall business strategy, impact team gameplay, and can lead to morale issues within esports organizations.
Esports companies invest significant sums, ranging from INR 15-20 Lakh, in activities such as gaming boot camps, player training, team strategy development, branding management, travel expenses, and player well-being. The departure of even one player can have a cascading impact on the team, affecting overall performance.
While players argue that capping salaries is unfair, they suggest that esports companies explore high-value brand deals and innovative business avenues to retain talent and maintain competitiveness.
The consideration of salary caps comes after the official recognition of esports by the government in December 2022 as part of multi-sport events. This recognition granted esports the same status as other offline/physical sporting events in the country, bringing it under the purview of the Department of Sports, under the Ministry of Youth Affairs and Sports.
