02: How Valve's One Decision Ended Franchised CS Esports

Counter-Strike: Global Offensive (CS:GO) is one of the most iconic esports titles, known for its competitive depth, skill ceiling, and longevity. Developed by Valve Corporation and Hidden Path Entertainment, CS:GO was released in 2012 and has since become a cornerstone of the global esports scene. For me, it’s not just a game, but my main one and the go-to esports event I watch. Ever since the old Fnatic-NiP era back in 2016, I got hooked on CS:GO events, and even though players, teams, and event organizers have changed over the years, I still haven’t stopped watching—because the game remains the same.

Since its inception, CS:GO tournaments have distributed over $150 million in prize money, with around $20–25 million awarded in 2022 alone. Major events like the PGL Majors often contribute over $1 million per tournament. As of 2023, CS:GO has awarded more than $150 million in prize money across over 7,000 tournaments, making it one of the highest-earning esports titles.

The Beginning

DreamHack Winter 2013 was a landmark event in Counter-Strike: Global Offensive (CS:GO) esports, as it marked the first-ever CS:GO Major Championship. Hosted by DreamHack, one of the largest esports and gaming festivals in the world at Jönköping, Sweden, this tournament was crucial for the evolution of CS:GO into a premier esports title. It was the first ever valve sanctioned major tournament with the prize pool of $250,000 and from there The Majors became the pinnacle of CS:GO competition, with increased prize pools and prestige over time.

The Growth

DreamHack Winter 2013 was a landmark event in Counter-Strike: Global Offensive (CS:GO) esports, as it hosted the first-ever CS:GO Major Championship. Held by DreamHack, one of the largest esports and gaming festivals in the world, in Jönköping, Sweden, this tournament played a key role in establishing CS:GO as a top-tier esports title. It was the first Valve-sanctioned Major tournament, featuring a prize pool of $250,000. From there, the Majors became the pinnacle of CS:GO competition, with prize pools and prestige growing over time.

The Franchise Leagues

In 2020, ESL launched the ESL Pro League (EPL), one of the most prestigious leagues in CS:GO, featuring top teams from around the world competing in a structured format. ESL introduced the Louvre Agreement, which established a partnership system with 14 partner teams, including organizations like Astralis, Na'Vi, Fnatic, and G2 Esports. In return for committing to participate in ESL events, these partner teams receive a share of the league's revenue. Non-partner teams can still qualify through open qualifiers, keeping the open-circuit spirit alive.

Around the same time, BLAST Premier launched a global tournament series featuring regular-season events, Showdowns, and seasonal Finals. BLAST partnered with 12 teams, including organizations like Vitality, FaZe Clan, and NIP. These partner teams received direct invites to BLAST events, ensuring their regular participation. Non-partner teams could still qualify through regional events or wildcard slots.

Flashpoint was a team-owned league launched in 2020 as a competitor to ESL and BLAST. Teams like Cloud9, MIBR, and Gen.G initially bought into the league, paying franchise fees for guaranteed slots. The league aimed to create a more player-focused ecosystem and distribute revenue among its members.

EPL and BLAST succeeded by striking a balance between stability and inclusivity. EPL’s Louvre Agreement gave partner teams revenue-sharing benefits while maintaining an open qualification system, ensuring consistent participation from the best teams. BLAST’s innovative formats, high-quality production, and exclusivity with popular teams helped attract both audiences and sponsors. This mix of legacy, inclusivity, and innovation allowed EPL and BLAST to thrive, while Flashpoint faded into obscurity.

Flashpoint failed mainly due to poor execution, a lack of top-tier teams, and tough competition from established leagues like ESL Pro League (EPL) and BLAST Premier. Launched in 2020, Flashpoint aimed to disrupt the CS:GO scene with a franchise model, promising better revenue sharing and a player-focused ecosystem. However, it struggled to attract elite teams, as most remained loyal to EPL and BLAST due to their stronger reputations and proven success. Flashpoint’s production quality and viewership were inferior to its competitors, and its reliance on hefty franchise buy-ins without a sustainable audience made the model financially unviable.

Valve Stepped In….

When Valve stepped in to regulate the competitive CS:GO ecosystem, it had a major impact on the direction of the scene, enforcing policies that ensured fair competition, inclusivity, and an open circuit. Valve’s main focus was on preventing exclusivity and maintaining a level playing field, which affected leagues like ESL Pro League (EPL), BLAST Premier, and Flashpoint.

Valve released a statement titled A Level Playing Field, where they firmly stood their ground on keeping the CS:GO esports scene fair, open, and merit-based. They also introduced their own ranking system to help tournament organizers easily invite top teams and allowed open qualifiers as an alternative route for invites.

Valve gave organizers, teams, and players until 2025 to work on this and ensure everyone had a fair chance.

Valve’s intervention ensured that CS:GO remained one of the few major esports titles with an open circuit, preventing any single tournament organizer or franchise model from dominating. This move preserved the game’s grassroots appeal and competitive integrity, allowing the ecosystem to thrive while pushing organizers to balance exclusivity with openness.

India’s Corner

Currently, there is no franchise league in BGMI, nor is one being actively promoted. However, Krafton has been quietly laying the groundwork for one, as seen in their plans for 2025. This could be a positive development for the future, especially considering the recent decline in interest, viewership, and investment in BGMI esports. With a lack of support and interest, we've witnessed the slow decline of the Indian third-party esports scene, with major players already stepping away.

In Valorant India, Global Esports, often referred to as India’s first profitable esports organization, entered the VCT Pacific in September 2022. This is a franchise league run by Riot Games for the region.