Esports
Have you ever had a rush of excitement as you fired up your favorite video game, transported from your ordinary life to a pixel realm of your esports game? Where pixels pulse with passion and the virtual battlegrounds become arenas of adrenaline-fueled excitement, where every victory or defeat resonates with the heartbeat of passion and competition. This new frontier of competitive gaming emerges, captivating hearts and minds alike.
“As video games gained wider appeal, a new form of competition emerged: esports. Esports, or electronic sports, refers to organized multiplayer video game competitions. What was once a casual activity among friends has now evolved into a highly competitive and professional sport” (Hughes, Nathan). Esports primarily involves teams competing against each other in tournaments for cash prizes and trophies. The tournaments usually work the same as traditional sports. People that are in these Esports teams are usually top-level athletes that are constantly at the top spots in their sport or game of choice. In almost 70 years of computer gaming history, eSports has now established itself in many countries around the world. As a result, prize money has increased significantly, events are growing every year, and even eSports betting is offered. From a small niche, it has become a multimedia billion-dollar market that is now attracting many investors (Larch).
In the 1990s, gaming went from casual hobby to an organized professional sport. Esports is soon to be a billion dollar industry, with rapid growth and championships that are watched live by millions. Some of the major media networks - ESPN, TBS, SyFy, and Telemundo - broadcast esports events. Traditional sport leagues like the NHL and the NBA have launched esports tournaments and leagues, and owners of NBA and NFL teams now own stakes in esports teams. “The numbers clearly show, esports is here to stay” (Adair, Cam).
The NBA 2K League and Wizards District Gaming
The NBA 2k league is a joint venture between the NBA and Take Two interactive. The 2k league is a professional esports league that features the best NBA 2k players in the world and it's the first official esports league operated by a U.S professional sports league. The NBA 2k League started its first season in May 2018 with 17 teams, each affiliated to an NBA Team. Since then, the league has expanded to 25 teams, 22 of which are affiliated with NBA teams. Since the beginning they have been mainly airing the 5v5 aspect of NBA2k. But recently they have added the 3v3 to the league. (League Info) Wizards District Gaming is the NBA 2k team from Washington, D.C. It won the league championship in 2020 and 2021 (seasons 3 and 4 of the league).
Andrew McNeill
Andrew McNeill is the Director of Esports at Monumental Sports, where he oversees both the team operations and the business operations for their esports properties, Wizards District Gaming of the NBA 2K League and Caps Gaming, the Washington Capitals’ esports-focused sub-brand. Before joining Monumental Sports in the summer of 2019, Andrew was the Head of Gaming at South by Southwest (SXSW) in Austin, Texas.
Andrew McNeill explained the agreements between the NBA 2k league and the NBA, and provided future insight on what to expect with a new agreement that the NBA 2k league signed with the NBA league last summer.
SPONSORSHIPS
Esports teams earn significant revenue from sponsorships. Sponsorships help cover their operational costs, such as salaries, travel, equipment, and coaching. Sponsorships also can enhance the reputation of esports with being able to get recognized and valued by reputable brands, and can create opportunities for cross- promotion and collaboration and be able to reach new markets and audiences (How Do Esports Sponsorships Work?).
Finding sponsors requires a good amount of research, networking and pitching, with a goal of finding potential sponsors that match your goals, values and audience. This will allow the team to build a solid, lasting relationship with the sponsor. Sponsorship agreements often include requirements that the esports team include the sponsor’s logo on team jerseys or other items. Managing sponsorships is also equally challenging. It requires commitment, communication, and compliance with contract terms. The esports team will need to avoid any conflicts of interest or controversies that could harm the sponsor's image or reputation (AI and the LinkedIn community).
Andrew McNeill described the importance of sponsorship to Wizards District Gaming.
Revenue in Esports
Figuring out new ways to drive revenue to teams and leagues will be the most important thing over the next five years and beyond, according to Andrew.
Andrew McNeill also explained how to get involved in the NBA 2k League.
Andrew McNeil told us about professional opportunities in Esports and the financial outlook for the industry.
Esports Leagues
Currently, the top esports leagues include the following:
Fortnite: A player-versus-player game for up to 100 players, allowing one to play alone, in a duo, or in a squad (usually consisting of three or four players).
Valorant: A team-based first-person tactical hero shooter game set in the near future.
Counter-Strike: An objective-based, multiplayer tactical first-person shooter game.
Apex Legends: An online multiplayer battle royale game featuring squads of three players using pre-made characters with distinctive abilities, called "Legends", similar to those of hero shooters.
League of Legends: a multiplayer online battle arena game in which the player controls a character (“champion”) with a set of unique abilities from an isometric perspective.
Photo courtesy of Wizards District Gaming
References:
Adair, Cam. “What Is Esports? History, Top Teams, Revenues and Risks.” Game Quitters, 18 June 2023, gamequitters.com/what-is-esports/.
“How Do Esports Sponsorships Work?” Nifty Communications, 5 Sept. 2023, niftycomms.com/how-do-esports-sponsorships-work/ .
AI and the LinkedIn community. “What Do You Need to Know about Esports Sponsorships?” Esports Sponsorships: A Guide for Pros and Beginners, www.linkedin.com/advice/3/what-do-you-need-know-esports-sponsorships-skills-esports-vmykc#:~:text=An%20esports%20sponsorship%20is%20a,access%20to%20a%20specific%20audience. Accessed 11 May 2024.
Hoppe, David, and Yusuke Hisashi. “Issues in Esports Law - Gamma Law.” Gamma Law - Gamma Law | Video Game Lawyer & Attorney | Video Game Laws, David Hoppe https://secure.gravatar.com/avatar/ad516503a11cd5ca435acc9bb6523536?s=96, 15 Aug. 2022, gammalaw.com/esports-law/.
Hughes, Nathan. “The Excitement of Video Gaming: From Console to ESports.” Medium, 22 Nov. 2023, thenathanhughes.medium.com/the-excitement-of-video-gaming-from-console-to-esports-5c8ea10e31ac.
Larch, Author: Florian, and Florian Larch. “Emergence of Esports: Once Ridiculed, Now a Billion-Dollar Market.” ISPO.Com, 16 Apr. 2024, www.ispo.com/en/sports-business/esports-history-how-it-all-began#.
“League Info.” NBA 2K League, 26 Feb. 2024, 2kleague.nba.com/league-info/.