how do gaming companies make money of it sponsoring players(I.e. tempo storm,cloud9,TSM)?

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Basically title post. Do they force players to give them earnings? If not, where do they get something in return? I can’t think of what the companies do aside from give the player an income.

In: Economics

It’s advertising for them. Similar to any other advertisements they pay for, but instead of paying a company to showcase their brand, they pay a player to wear their logo and represent them.

They assume that sponsorships will increase their sales based on the fan base of the people they sponsor.

Have you noticed that players not only have their sponsors name on their shirt? They also have other names in there like geico, LG, HTC, among many others. This acts as a type of advertising for those companies. They pay Storm, TSM, cloud9 or whatever sponsor, and the sponsor pays the player.

Also, I’m not 100% sure on this, but they might also get a cut from the players earnings for winning.