TOTAL LICENSING rivals. It is now also possible for teams to safely invest up-and-coming talent without the risk of dropping out of leagues from inexperience. Most importantly, however, the franchise structure is already a familiar and well-known format for licensees, advertisers, content buyers, agents and sponsors alike, encouraging further commerciality through proven market confidence. For the first time in esports history, investors and sponsors can buy themselves a permanent spot at the esports table, hopeful in the opportunities it provides. Sponsorship lets them ride out the long-term growth prospects of the industry and enables them to communicate effectively with the coveted millennial audience. Rob Moore, (CEO of the Phenix1 OWL team and the previous Vice Chairman of Paramount Pictures) highlighted that prior to franchising, “there was always this uncertainty in esports, because other than the top, top teams if you were a sponsor, you didn’t know if your relationship with a team was going to last three months or three years”. Championing progression in esports, he explained that the industry “has definitely evolved from a bunch of gamers organising tournaments to experienced business people with substantial investment, really looking to turn this into something for the long term.” Moore is not alone in this train of thought. In October 2018, car-giant Mercedes prolonged their commitment to esports by extending their global partnership with the Electronic Sports League (ESL) until December 2020. According to Britta Seeger (member of the Daimler board
of management, responsible for Mercedes-Benz cars marketing and sales), their motivator was simple; It gave Mercedes a brilliant opportunity “to open up a dialogue with young people; especially those with an affinity to technology.” Brand opportunities aren’t just limited to sponsorship deals either. Just recently (Dec 2018), Activision Blizzard announced a new multi-year deal with Fanatics; the global leader in licensed sports merchandise. This deal makes Fanatics the official retail partner for the Overwatch League. This contract includes the U.S. and international rights to produce OWL jerseys, fan gear, headwear, and hard goods being sold across all retail and wholesale channels. This is the first deal of its kind between a major retailer and an official esports league, signalling further confidence for the commercial potential in this relatively untapped audience. With the proven success of franchising and the knowledge that teams will be relevant to audiences long enough to work around manufacturers production times, it won’t be long until other licensing partners start queuing up to publishers for their slice of the action. According to an industry survey performed by Newzoo late last year, most esport teams inter-
viewed expect the industry will fully mature as a business within the next five to 10 years. In the same study, agencies and brands were asked the same question and respondents believe that the industry will be fully professionalised within the next three to five years. Whilst esport licensing programmes are still in a state of relative infancy compared to their traditional sport counterparts, the future opportunities that can be spotted on the horizon are definitely somewhat enticing for brands. Even considering that the OWL and NA LCS leagues are currently focused on the North American markets, their influence has helped to provide additional external investment, increase sponsorship budgets and sell international media rights on a global level. These three revenue streams alone are big enough to influence funds to be reinvested into the esports scene; helping fund the next generation of gamers, fans and stakeholders alike. Should the franchised route prove to be just as successful in areas less familiar with the system, then the future commerciality and longevity of esports on a global level look very promising indeed. The next couple of years will determine the pace at which esports becomes the global multi-billion-dollar business that we all envisage it to be. If current perceptions are indeed correct, now’s the time get on board.
Tom Power – EMEA Account Manager, PowerStation Studios Notes about the author: After a much-enjoyed tenure at one of the top global interactive entertainment publishers, Tom made his transition into the licensing industry when he joined PowerStation Studios to help clients realise their full commercial potential. Since working at PowerStation,Tom has continued to devise and execute innovative solutions for some of the biggest entertainment brands across the globe; maximising their commercial return through unconstrained creative problem-solving.
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