Esports: Competitive video gaming with leagues, prize money and sponsorships.

on a given list.
For some time, every conversation I had about investing in esports centered round the teams.
An important area of the ecosystem, it’s imperative that we, as esports investors, know how esports teams earn money.
There are several more other notable games usually within the categories of multiplayer online battle arena games, fighting games, first-person shooters, real-time strategy, and sports games.

Athletic Panda Sports Editors reported in January 2020 that a lot more than 443 million people globally watch esports tournaments on a regular basis.
Considering how esports teams earn money going into 2020 is an important exercise for evaluating the future of the industry.
As with a lot of things, following the money is a good way to know how everything works.
One of the key differentiators between esports and traditional sports may be the fact that a company owns the intellectual property that is the game.
The NFL doesn’t own football, but Activision Blizzard does own the overall game Overwatch.
While there is no doubt that team organizations value their teams succeeding in competition, it’s actually not universal for a team organization to take a cut of tournament winnings.

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Additionally, gambling platforms have obtained criticism for his or her integration with the larger esports industry.
Esports platforms regularly sponsor professional esports teams, as happened with the contract between Betway and PSG.LGD team in August 2019.
This approach is more appealing for larger investors, who would be more ready to back a team that remains playing in the esport’s premiere league and not threatened to be relegated to a lesser standing.
Though the details vary from league to league, these leagues generally require all signed player to get a minimum salary with appropriate benefits, and could share in the team’s winnings.

For instance, until 2018 Riot Games runs several League of Legends series, with the League of Legends Championship Series being the top-tier series.
Teams that did not do well were relegated to the League of Legends Challenger Series, replaced by the better performing teams from that series.
This format was discontinued when Riot opted to use the franchise format in mid-2018.
The popularity and emergence of online streaming services have helped the growth of esports in this era, and are the most frequent method of watching tournaments.
Twitch, an online streaming platform launched in 2011, routinely streams popular esports competitions.

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[newline]One way to gain exposure to the esports sector is through public markets.
Below is a list of publicly traded companies which have various connections to and investments in esports.
For instance, Tencent owns Riot Games, creator of the most-played game League of Legends, while Activision Blizzard develops the favorite games World of Warcraft, Overwatch, and Hearthstone.

• Many new esports teams require significant investments to be able to pay for the expenses listed below.
• As well as professional and amateur esports, esports have drawn attention of colleges and high schools since 2008.
• the payout of The Masters.
• All five of the very best Esports prize pools up to now have come thanks to the annual tournament.

We believe esports is hitting an inflection point, and given the recent investments into the industry, it makes sense to wonder where we go from here.
The model supplied by traditional sports certainly supplies a framework to work off, though I’d argue that following that roadmap too closely will be a mistake.
The purpose here’s to go over the tournaments and leagues that have the most brand awareness both within and outside the gaming community.
To combat this, the franchised Overwatch League announced they will be going global in 2020.
Every team gets the chance to host a weekend’s worth of tournaments in their hometown, whether it be in NEW YORK or Seoul, South Korea.
Based on the Overwatch League’s former commissioner, Nate Nanzer, this would be a way for fans from worldwide to wait games.