posted by jdowen1984,

How the plan for regional leagues can help, and how the existing plan falls short



Stability is the key



As many pundits have commented, what the professional economy needs more than anything else is stability. A 96-team international league sponsored by Valve has the potential to do a lot to help bring this stability. The league format can, if properly executed, make the Dota 2 economy significantly more friendly for organisations.



First, the league format can mitigate downside risk for organisations by guaranteeing a minimum participation fee for all teams. Organisations will be much more willing to sponsor Dota 2 teams if they know they won’t lose money doing so. Valve’s proposed prize distribution for the regional leagues is a huge step in the right direction, with the 1st place team in the Upper Division earning only 30 percent more than the 8th place team.

Second, by bringing all tier 1-3 teams from across the world into a single league structure, Valve is creating a more centralized hub for courting third-party sponsorships and streaming deals, which means more money coming into the economy.

Third, by simply making the effort to take control and improve the professional scene, Valve should be able to create more consumer confidence in a future for competitive Dota 2. Organisations need to believe the sport has a future, and Valve’s public commitments and actions toward improving the scene play a big role in helping to inspire that belief.

Still, Valve’s rollout of the new DPC raises both questions and concerns.



A healthy infrastructure



As MoonMeander talked about in the Position 6 Podcast, making the professional economy more appealing to team organisations is the single most important factor in creating a healthier, more stable scene. Team organisations are the actors in the economy who can most efficiently grow outside income - in the form of sponsorship deals and merchandise sales - and convert that income into infrastructure that furthers player support and development. More, stronger team organisations participating in the Dota 2 economy are the best way both to keep veteran players competing and to develop the next generation of players.

With the announced prize pool, teams that managed to stay in the Upper Division through all three seasons would earn a minimum of $66,000. While that might seem like decent money, it doesn’t go very far once you factor in that there are five players on a Dota 2 team, most pro teams have or at least would like to have a manager, most hire at least a few other support staff for their teams, and these organisations also need to turn a profit.



Valve would have an easier time convincing organisations to sponsor all 48 teams in the Upper Divisions if these prize distributions were only a piece of the available income. The game developer should approach the DPC not as a Valve-sponsored league, but as a Valve-managed league. Their commitment to a $280,000 prize pool per league, per season is massive, but there’s a lot more money out there to be earned. Outside sponsors, sale of streaming rights, and community-generated revenue can all be used to support the leagues and increase income for all teams involved.

The goal must be raising the floor sufficiently that even the last-place team each season can continue to operate profitably and with organisational support. Valve can insure this by spreading the wealth more evenly, rather than blowing 30 percent of it by awarding millions of dollars to the eventual TI winners.



Why communications matter



At the same time, if Valve is genuinely committed to keep competitive Dota 2 alive, they must more fully embrace their role as administrators of an esports league. Limiting public communications to two or three blog posts per year sends the clear message that competitive Dota 2 is an afterthought for Valve - something they know they are responsible for, but would rather not have to deal with.

If organisations are ever going to re-invest in Dota 2 teams again, they need to be able to believe that the sport has a future, and that participating in that future will earn them more money than they can earn right now.

Sincere, frequent, and transparent communication from Valve, both to the public and directly to team organisations, is the most effective way to begin building this confidence in a better future. What’s more, better communication doesn’t really cost anything.



What’s next



As it stands now, most pundits in the scene are expecting the new DPC season to be another in a string of disappointments - another missed opportunity to set things right. But perhaps the delays will give Valve the opportunity to listen to feedback and improve. The Fall Update posted in September suggested the beginnings of a shift, with Valve at least acknowledging their previous communication failures.

Will this lead to more substantive changes that take community feedback into account?

As a long-time fan, I really hope it does.

What is your take on the current economy in the competitive Dota 2 scene?



Go back to page 1 of this article: "Why Dota's economy is failing and the scene is dying"



Photo credit: Valve

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