What Does it Cost to Run an Esports Club House?

Providing an on-site esports club house takes money, time and effort. Martin Müller, Chairman of Magdeburg eSports and Vice President of the eSports Federation Germany, has released costs and incomes of the Magdeburg eSports club house for 2022 and 2023. The numbers show a decline in sponsoring money, but a significant gain of usable funds through energy savings.

Martin Müller, Chairman of Magdeburg eSports and Vice President of the eSports Federation Germany, has an insight into the accounting of Magdeburg eSports on Social Media, to better make transparent the costs and hurdles of running an esports club house.

Magdeburg eSports e.V. runs a non-profit approx. 150 m² clubhouse in the city centre of Magdeburg in Lower Saxony

The volume of Magdeburg eSports’ profit and loss count is approximately 19,000 euros according to Müller. The club also receives various non-cash benefit sponsorings, among them the fibre optics internet connection by MDCC GmbH and a low rent through WOBAU Magdeburg. Other sponsors of Magdeburg eSports in 2023 were the K+S Group, Volksbank Magdeburg & Müller Massivhaus GmbH.

Müller has branched out all income and expenditures of 2023 in percentages and compared them with the numbers from 2022. Here are the lists:

Income 2023:

40% sponsorship income (2022: 60%)
30% membership fees (2022: 33%)
6% rental income (2022: 0%)
4% income from public funding (2022: 0%)
2% income from events (2022: 3%)
2% Twitch affiliate revenue (2022: 0%)
16 % other (2022: 1%)

Expenditure 2023:

69 % Rent + NK clubhouse (2022: 61%)
10 % Event expenses (2022: 9%)
9 % IT infrastructure (2022: 9%)
5 % Insurance (2022: 5%)
4% Club equipment (2022: 4%)
1 % Contributions to associations (2022: 1%)
2 % other (2022: 8%)

The ‘Other’ income point includes a significant four-figure repayment of operating costs, Müller says. “Saving energy pays off and is also communicated to members on an ongoing basis,” he adds.

“The association's total revenue stabilised at the level of 2022 and was sufficient to maintain the clubhouse and organise events. However, the necessary replacement of technology or the further expansion of the club can hardly be managed with this budget.” Müller explains further.

“The year got off to a bumpy start for the association, as some key players had very little time. From mid-2023, we were able to reverse the trend and consolidate the foundations of the organisation with many campaigns and the establishment of a youth training programme. I would also like to take this opportunity to thank all the volunteers whose commitment is essential to the running of the clubhouse and the club! Without you - and the supporting members who are not very active - a club with a clubhouse would not be possible! The effort involved in running a clubhouse can only be roughly summarised here. In addition, many hours are spent on remodelling, maintenance, upkeep and the preparation and follow-up of events.”

As the current biggest challenge for the club, Müller adds the replacement of PC technology and chairs for the club house, and invites sponsors or helpers to assist in the matter.