Less fund-raising, more income — Sentinels rebuild their business model

May 2025. The North American organization Sentinels just published its financial results for 2024. At first glance, it’s a still-in-debt club, with 6 million dollars of deficit and equity in the red. Adding to an already hefty $16 million tab in net losses over the past two years, as detailed in a previous report by Sheep Esports.

But behind this rough photograph hides a clearer trajectory than it appears. In an exclusive interview with Sheep Esports, Rob Moore, the Sentinels CEO, shared his vision with us: an organization that embraces its progressive growth, invests in its brand rather than in hypes, and gets closer to profitability step by step.

The Sentinels' net sales have gone from 2.93 million dollars to 5.79 million in 2024, equivalent to an increase of +97%. This spectacular growth is due to two key factors: the internalization of merchandising and the surge in commercial partnerships, notably with Razer and Red Bull.

“We doubled our gain without reinforcing our structure,” explains Rob Moore. “Our staff remained around 20 people. And yet, our gains should grow by 30% in 2025, with a decrease of our spending between 10 and 15%”. This internal stability contrasts with a sector in which the clubs often inflate their wage bill to pursue growth at all costs. Sentinels, on the other hand, has maintained a lean agile model.

The net loss, while still being significant, has been reduced to 6 million dollars in 2024 compared to 8.5 million in 2023. On the balance sheet, assets have more than doubled (from $667,000 to $1.5M), driven by a rising cash position ($685,000). However, liabilities are soaring, reaching an amount of $8.4M mostly due to a $2.85M loan taken via JAG Future Ventures LLC, a minority shareholder (23.3% of the capital).

“Profitability by the end of 2026 is the goal. To reach it we are not relying on massive fund-raising, but rather on a self-financialized brand,” says Moore. The strategy is clear: not to overinvest, but to better monetize what’s already in place. A direction already taken in 2023, while the organization had started the internalization of its merchandising and slowed down the spending related to the unprofitable content creators.

One of the most important lessons learnt from the conversation with Rob Moore lies in his vision on the inflation spiral, which weakened the esports economy for a long time. To him, the current correction of the market isn’t a crisis but an opportunity: “For years, the organizations stacked content without knowing how to make them profitable. Today, we are focusing on those who truly support the brand and generate sales, not only views.”

This discipline is also found in the players' wages, where Sentinels managed to maintain the pressure. About VALORANT, where the salaries peaked in 2021-2022, Moore says that “the pressure on the wages decrease is general and healthy.” The organization maintained a stable total payroll while remaining competitive, as its double qualification for the 2024 Masters shows.

Another point underlined by Moore: The Sentinels' entrance among the official partner teams of the Esports World Cup in 2024. Beyond the prestige, this position opens new sources of revenue: performance bonuses, rewards for marketing commitment, and distribution of digital gains.

“Being a sponsor of the Esports World Cup means more than a logo. This is a cash source, but also proof that we became a reference actor.” For a structure such as Sentinels, which never relied on franchised leagues such as the LCS — the club was reportedly denied a spot in North America's League of Legends elite ahead of the 2018 season —this partnership represents a profitability and visibility lever, in line with its more flexible but demanding model.

Sentinels rely on their ability to activate their community. Jerseys produced in advance for the Masters in Toronto, launch of limited-edition products such as the Sentinels-branded Razer mouse, community evenings with Red Bull, and the development of a mascot for the Academy: all initiatives designed to turn every sporting moment into a commercial opportunity.

“Today, each qualification becomes a lever. In Toronto, we already had the jersey ready. As soon as the announcement is made, we launched the production. It changes everything.” Another striking example: the “watch party” evening organized during the Masters, which gathered almost 1,000 fans in Toronto. A local, responsive, and profitable activation – made possible by the complete mastery of the production and diffusion chain.

Far from extending their model in an opportunistic way, Sentinels select their games with care. Rob Moore summarizes it in one sentence: “When a new title comes out, we try to be the first to go in. That’s what we have done with Marvels Rivals, and the team we built is already one of the most well-known.”

But two titles are being studied. The most talked-about one internally? Counter-Strike 2. “It’s probable that we go in, maybe in 2026 or 2027. But if we do, it will be with a true north American ambition.” About League of Legends, Moore confirms that the club is currently evaluating the opportunities offered by the Guest Spot, a new way to qualify for the LTA.

Sentinels are continuing to grow, but in a departure from past industry logic. Where others have raised tens of millions to buy visibility, Rob Moore has preferred to build slowly on sustainable foundations. “During five years, nobody told us to build a sustainable business. Today, it has become our priority. And so much the better.”

The loss remains real, but under control. Growth is no longer fuelled by venture capital, but by real commercial traction. And the brand, more than an image tool, is becoming the backbone of the business model. Sentinels isn't looking to survive the esports crisis. It seeks to overcome it, by finally creating a viable business.