10x Revenue multiple is insane on those valuations. Most of those teams are barely 10 years old, and mostly unprofitable through their tenure. I think we're starting to see a rational market take over with FaZe going from 750m+ market cap to ~30m.

>There's a lot of sponsor money involved, big organizations with multiple teams for different games traveling to large events.

Just because there is a lot of money moving around it doesn't mean it's profitable in general.

>Doesn't sound like they are all doing it for the love of the game.

Doing it in hopes of making a return on investment doesn't guarantee you will be profitable.

>There's single teams that are valued > $500m

A lot of those numbers are inflated. As the sister comments mention look at what happened to faze.

Private valuations are nonsense. FaZe went public via a SPAC and is now down by ~95%.