Esports: Big Sponsorships Amid Renewed Layoffs

Riot Games and Team Liquid expanded sponsor deals while events maintained $1M+ prize pools; developers, publishers, organizers and teams announced layoffs in 2026.

In 2026 the esports industry recorded major sponsorship deals and sustained large prize pools at the same time companies across the sector announced staff reductions. Riot Games and Team Liquid led the commercial activity while layoffs affected developers, publishers, tournament operators and teams.

Riot Games renewed ExpressVPN’s partnership with the League of Legends EMEA Championship and extended the brand into the VALORANT Champions Tour. The company also added G2 and Method as sponsored organizations. Team Liquid continued and expanded its sponsorship relationship with Alienware. Tournament operators including ESL FACEIT Group, BLAST, PGL and Epic Games staged events with prize pools above $1 million.

Several developers, publishers and event organizers announced head-count reductions during 2026. Reported cuts affected roles in production, event operations and other positions tied to live competition. Some of the layoffs occurred at organisations that simultaneously announced new commercial deals.

Recruiting activity reflected a shift toward commercial roles. ESL FACEIT Group posted multiple sales openings, including a Senior Director of Global Brand Partnership Sales. Team Liquid listed business development positions. Public job postings showed a concentration of new roles focused on sponsorship sales and partnership management.

Teams and sponsors increased use of measurement tools to document returns on partnerships. Team Vitality partnered with Blinkfire Analytics for commercial data tracking, and the Vitality x Magnum x Uber Eats campaign published performance figures meant to quantify sponsorship outcomes.

Companies cited technology and economic factors when adjusting staffs. Employers reported that artificial intelligence was changing workflows for content production and data analysis. Broader economic uncertainty led some investors and operators to reduce costs and reassign resources.

Sponsorship revenue remained a primary income source for many organisations, making audience visibility and engagement metrics important for commercial agreements. The sector’s activity in 2026 combined new sponsorship commitments and large prize pools with workforce reductions and targeted hiring in revenue-facing roles. The changes left affected professionals seeking new positions or moving to other industries.

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