Caffeine is a startup company, most companies don't turn profits for years, sometimes decades. That's why you need a shyt ton of money to run a business, which they pretty much got from investors. They got 100 Million from Fox, and money from Cox Enterprises and Sanabil Investments. Kevin Durant is invested in them too. They got close to 300 Million in total in investments. They only been really around for 2 years as a fully operating company. I don't see them eliminating literally the only entity that's generating them views. I don't believe they've come up with a system yet that makes them any profits. They don't have ad-revenue, they don't have a subscription service, they don't have merchandise. Only thing I see you can really pay for on their site is by buying props for their broadcasters.
I think sooner or later, Caffeine is gonna have to add a subscription service or ad-revenue. For now, I think they're trying to build a big enough audience to come watch them. URL been keeping them afloat doing it, which is why they have to keep pumping out content. So while URL isn't making them any money yet, the pay outs to fund URL events is just the cost of doing business to gain a following. And since all of the URL/Caffeine events are pretty much produced all in-house (Caffeine camera crew, caffeine studios, caffeine staff who are already salaried probably)...they save a lot of money. The only thing they spend a lot on is battlers. Which is nothing to them. Even if they spend 300K-500K for big events, and around 50-100K to the smaller cards like Super Fight, that's nothing for Caffeine.
If I was Caffeine, I'd worry about URL going elsewhere more than vice versa. There's been a few big conglomerates who have shown interest in purchasing the brand.
Appreciate the breakdown breh, makes sense!