Largest export partnership in 2020

Partnerships and sponsorship are the ingredients of life in sport, good or bad. Without companies investing in the industry to promote their products and services, no one knows where this competitive game will last a lifetime.
Regardless of the obstacles it goes through, esports continues to successfully raise capital and use it to advance its business. This is the case, regardless of whether it is tournament organizers, team organizations, or support companies on the fringes of the industry.
With that in mind, we’re used to big deals being announced and it’s easy to forget about the progress we’ve made together over the long term. I’ve rounded up what I believe are the biggest esports partnerships of 2020, including the reasons why they’re taking the cut as a starting point. It’s important to document so we can better track future progress.

Date: April 16th
Details: Under the banner of United in Rivalry, BMW has partnered with five of the most famous organizations in League of Legends. As a sponsor of social media and t-shirts, but also more than that, BMW Sport wants to present a wider audience and provide a vehicle for the team.
Significance: BMW is a household name in many areas and the decision to continue investing in exports is not a mockery, especially considering the number of organizations they are setting up for this initiative. Given the story between Europe versus North America, Europe versus Asia, Europe trying to win the world, and North America not appearing in global events, this is a very clear move from the auto giant. What they produce in 2020 regardless of the global situation is a good sign for the future.

Fnatic and Gucci

Date: June 25th
Details: After Gucci disrupted the collaboration earlier in the year, he officially entered the sport in June, working with British organization Fnatic. A watch inspired by the team’s League of Legends team launched, priced at £ 1,150 with limited availability.
Significance: Much like the monumental success of Louis Vuitton’s 2019 invasion of the sport by League of Legends, Gucci’s arrival was the subject of much industry attention when it was announced. While they haven’t done much since launching their co-branded watch with Fnatic, we’re pretty sure the product launch was a success and they wanted to see how deep they could go further.
This partnership further proves that luxury brands can succeed in sports even though many fans haven’t opened their wallets in the same way they do in sports.

T1 and Nike

Date: January 16th
Details: Nike makes uniforms for all of the T1 roster, including their team at LCK, as the organization’s exclusive apparel partner. The sportswear giant also provides a “modern training facility” at the organization’s headquarters in Seoul to help with player development.
Significance: Although Nike has been in the sport under contract with China’s League of Legends, LPL, it has the potential to become a more influential contract worldwide. Almost everyone knows Nike, and they see this partnership as a sign of significant investment and ownership, similar to what they have offered in traditional sports for decades. Coincidentally, the T1 is one of the most popular team brands in the industry, which doesn’t hurt.

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Microsoft acquired the Esports Smash.gg platform to strengthen its gaming segment

Microsoft (NASDAQ: MSFT) has acquired the sports tournament platform Smash.gg in another plan to expand its gaming segment. Neither company has confirmed the value of the deal.

The acquisition was announced via a Twitter statement from the Microsoft Esports account. According to Microsoft, enthusiasts should expect more support and opportunities.

Smash.gg currently supports more than 6,000 active events.

Microsoft’s growing gaming segment

Microsoft wants to build a positive image in the world of games built on the Xbox platform. However, Microsoft’s gaming image changed after the company decided to shut down the Mixer live streaming platform in early 2020.

Microsoft’s gaming revenue hit $ 11 billion recently, although the company aims to reach three billion gamers. In particular, revenue from the Game Pass subscription service, which gives fans access to content from various studios, is increasing.

Smash.gg has been in the California industry for five years. The company’s goal is to build an active virtual world around the world.

The trusted bank from Challeger

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Actions to combat fraud in sports competitions

BLAST esports tournament organizers have made significant changes to their code of conduct to prevent fraud for fear of match fixing. BLAST is the leading host for Counter-Strike: Global Offensive (CS: GO) and Dota2 tournaments, which are regularly sponsored by Betway bookmakers. The new rules were designed to prevent coaches from hiding after a scandal that …

Simplicity Esports and Gaming Company (OTCQB: WINR) announced today that it has signed definitive documents to acquire three additional gaming centers from franchisees in California and Washington. The game center, together with previously announced acquisition targets, achieved combined sales of over $ 2,000,000 by 2019. With the completion of this acquisition, Simplicity owns a total of nine company properties and 20 game centers owned by the franchisee. open and work. The franchise’s other 12 game centers remain closed due to government restrictions.

Roman Franklin, President of Simplicity Esports, said, “Social distancing and COVID-19-related capacity constraints have negatively impacted traffic at some of our gaming centers, while others have recorded record member sales for months. One of our company’s game centers in Texas has so far sold 37 new memberships in October.

2020 provides us with an excellent opportunity to invest in gambling center acquisitions while also taking advantage of commercial real estate disruptions that allow us to sign new contracts for five to ten years, calculated as a percentage of gross sales will. The EBITDA acquisition profile is attractive to Simplicity, as the signing of a new lease rate reduces fixed costs the most. This acquisition allows Simplicity Esports to report the total revenue from this gaming center on a consolidated basis. “”

In addition to this completed acquisition, Simplicity has six other non-binding letters of intent to acquire an esports gaming center at a new rental rate from the landlords. The other six acquisitions are expected to be completed by November 15, 2020.

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NiKo from FaZe Clan will soon move to G2 Esports

CSGO star Nikola ‘iNiKo’ Kovač will move from the FaZe clan to G2 Esports, where he will meet his cousin and fellow striker, Nemanja ‘huNter-‘ Kovač.

In late September, it was reported that the two organizations had started talks about the transfer of the 23-year-old Bosnian international. The deal is expected to close a few weeks after the initial reports, although it may be closer now.
Both teams will be under a lot of pressure to close the deal as soon as the BLAST Premier Fall Series is near.
The news follows the recent FaZe Clan Championship of European Intel Extreme Masters XV New York on October 11. G2 Esports finished this event with 7-8 places.

According to HLTV, the deal could cover “one of the biggest transfer fees in the game,” which could exceed the $ 500,000 fee FaZe paid mousesports in 2017 for NiKo.
The G2 should make room on their starting NiKo roster, where Frenchman François ‘AmaNEk’ Delaunay can be seen on the bench or in other teams, according to the report. It is also suspected that FaZe was looking for someone to replace the star even before the $ 150,000 worth of BLAST Premier started.

G2 Esports is included in Group C of this event and will face FURIA on November 2, while the Group B match between FaZe and BIG will start on October 29. Therefore, it will be difficult for both parties to finalize the proposed agreement as soon as possible. -Soon.

As successful as NiKo is at the individual level, his beginnings with FaZe have not resulted in a major title. While the next big game in Rio has been postponed indefinitely due to the ongoing crisis, the superstar can play under a new flag while shooting.

When an agreement was reached, he switched from a team with players such as Marcelo ‘Coldzera’ David, Marcus’ Kjaerbye ‘Kjærbye and Håvard’ Rain ‘Nygaard, similar to Nemanja’ Nexa ‘Isaković and longtime French star Kenny’ KennyS – Šrub.
NiKo has been with FaZe for three years, but all of them show that his magic, which is wearing a red and black shirt, will not last long.

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Platform to unlock the future of bar esports

They can adapt to life under the blockade, but that doesn’t stop platform owners from making big plans.

Located on Shoreditch in the heart of London, the Platform combines a vibrant modern aesthetic with a classic video game setting: think not cheap consoles, sofas, and rows of computers. In fact, major investments in gaming and cyberspace are ubiquitous these days, but that doesn’t mean everyone has broken the code for what makes a space stand out – or how to emulate the success of prevailing internet cafe culture. in Korea and China.

We spoke with the platform founders, brothers Tomaso Portunato, CEO, and Niccolo Portunato, CEO, to hear their thoughts on some of the latest trends in esports bars and restaurants in the Western Hemisphere.

Esports Insider: Let’s start with your vision of the platform and more. Would you like to start a franchise sometime? What are the long-term aspirations on the table?

Tomaso Portunato (TP): Franchise model, I think it’s too early for us to really know and support what we have to say. But I think the intuition we have, and we’ve seen in the past, is that not having a franchise is better than having a shaky franchise. We’ve seen this in some game concepts, but I’ve seen other, unusual hospitality concepts as well: that early aggressive franchise models could lead to brand ambiguity and inconsistencies in the experience offered to our customers. And we really want to avoid that. This is something we will focus on, but perhaps in the next phase of growth.

Where we are now in our little map is that we have a very expensive MVP that works, it’s profitable, so that’s great. The next step is to see if we can set up an operation based not on one location, but on the next third step. So we try to go out there, and I think three to five or eight – we’re going to look at the franchises here.

Regarding the concept that we want to present, I think that with our current location, we have tried a little bit of everything. So there are some sports, some games that are very casual. Some are retro, some are racing simulators. So there is something of everything.

Now let’s focus on a more focused concept. So, the next concept we’re working on at the moment is really to focus on social play and the inclusion aspect. It’s a little less sporty, it’s more like a Nintendo type, but it’s in the market for the experience. So we are here now.

I also think we realized that games weren’t enough for a place like us. This is something we were aware of last year and I think maybe other places have made a mistake. We still don’t know because we don’t have the answer about the best concept yet. But we believe games are just the anchor that keeps people coming.

“This must be a complete package that we provide to customers to create sufficient value for society.

What we’ve seen in bars and other game concepts – and you know, we haven’t seen them all yet – but we travel to Korea, we see computers crash there, we see the beginnings and the cultural phenomena they represent. We go back to England and see what is here now. And it seems that many of these places pride themselves on the hardcore gaming perks you can get at home. This is the type of vibration they create. And our point of view is: it’s good, it’s good, has a good rig, good hardware, and well-maintained hardware. But what we want to offer is the whole experience that surrounds and passes the waiters, food, drink, lighting, ambiance and music. So there is a combination surrounding it that we think is more important, right?

So, just having good hardware is not enough for us. This should be the complete package we give our customers enough value for people to think, “OK, maybe I’m not playing from home today, but I’m going to really go there because it’s a different kind of game. . Experience is. “

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Esports belongs to the top Swedish teams as it all comes into the new episode of Riot Games

Joining the Valorant community is an ideal move for the guild and we look forward to expanding into new exciting and emerging sports spaces, “said Carlton Curtis, chairman of the sports group.

Guild Esports PLC (LON: GILD) revealed the signing of its newest, top team that will compete in Valorant, a shooting game launched by Riot Games in June.

Sure Lagmari “Jacin”, Malcolm Rench “Boncar”, Leo Jannesson “Leo”, William Sundin “Draken” and Philip Gaufin “Goff” left the successful Swedish “Team Bonk”.

You will join guild teams that compete against each other in the Rocket League and FIFA.

“Joining the Valorant community is an ideal step for the guild and we look forward to expanding into new exciting and emerging sports fields,” said Carlton Curtis, chairman of the sports group.

“Valorant is destined to become a major export item with a global reach and a large fan base, and has the prestige developed by world-class publisher Riot Games.”

“With this signature, the Guild has established itself as a multidisciplinary export business and we look forward to sending players into new games as we continue to improve and invest in our business using the military crates we collected during our IPO.”

The IPO rewards the company, which has former England captain David Beckham as a brand ambassador and shareholder, more than £ 41 million and generates £ 20 million to be invested in new signatures like Bonk.

With strong support from Manchester United and the great Beckham from Real Madrid, the Guild is bringing talented talents to become the best academic models in the Premier League.

Fergus Purcell, known for his work with the Palace Skate and Streetwear brands, was tasked with developing the company’s branding.

Within 12 months of traveling, the company tried to win over sponsorships, a loyal fan base and its own line of products.

On Monday, the Guild announced its first major commercial deal since going public, a £ 3.6 million sponsored deal with an unnamed European fintech company that caters to esports fans.

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Great Britain experienced an annual growth of 8.5% between 2016 and 2019.

The UK export sector saw an average increase of 8.5% per year between 2016 and 2019, according to Olsberg • SPI’s “The Value of Exports to the UK” report with Nordicity.

The report, commissioned by British video game organization Ukie, also highlighted that the sector has supported more than 1,200 jobs over the past year.

However, a gradual increase in the UK’s export sector accounts for just under 8% of the world market.

As a result, Ukie submitted eight proposals to the government to ensure the UK sports sector continues to grow. These recommendations include ensuring regular engagement, promoting the UK sports industry and having experience securing international events.

Ukie also urged the government to cooperate with industry to support export of export products such as linear broadcast content.

In addition, trade organizations have proposed government proposals to work with esports companies to buy advertising space and run campaigns to connect with a young and highly engaged demographic in the sector.

Other recommendations, such as providing clarity on visas, how athletes and talents should apply for entry to the UK, funding technological innovation and maintaining regulatory stability, are part of efforts to sustain and strengthen sector growth.

Regarding the results of the report, Dr. Joe Twist OBE, CEO Ukie: “Esports is a global sector at the crossroads of technology, creativity, broadcasting and entertainment – all areas of real national strength for Great Britain. This report shows us that the UK has a strong and growing sports industry, nevertheless. much remains to be done to realize the full potential of this exciting and fast growing sector. “”

The report also shows that the UK sports sector supports a Gross Value Added (GVA) of £ 111.5 million in 2019, with the country’s main competition potentially creating full-time equivalent (FTE) in employment. and £ 12 million in GVA for the economy.

Leon Forde, Managing Director of Olsberg • SPI said: “The report highlights the scale and breadth of a very innovative sector in the UK with very strong future potential.”

Dustin Chodorovich, Partner at Nordicity, added: “A first look at the economic impact of the UK eSports sector shows that it creates jobs and ESPE not only in eSports companies but also in streaming platforms and game makers. as well as in the tourism and hospitality sector. “”

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For Americans, games and sports are “an escape from reality.”

Video game enthusiasts come in many forms – there are hardcore gamers who play at night, who treat gaming as a competitive sport, and those who only play from time to time, i.e. when a new game comes out.

The types of play themselves can also vary widely, from sports to action to parallel worlds. But if they have one thing in common, that’s how they make people feel.

In fact, our new data shows that many Americans are finding solace in video games and esports during the pandemic to socialize and recover from the pressure of the outside world.

The study, which looked closely at the habits of more than 500 Americans who played video games or watched sports when blocked, found that nearly half (46%) played more than 10 hours a week at that time.

When closed, it becomes somewhat multifunctional, and many find additional benefits in using the gaming platform. Two-thirds of respondents said games were fun and helped them spend time and relax. 55% said it could be used to communicate with friends, and nearly half (45%) said it was a way of communicating with friends escaping reality.

Although the majority of respondents had experience with games or sports, 15% were new and had used them after the blockade had started – no doubt for one of the many reasons listed above.

Whether the habit will last is another question. Those who were new to the game or significantly increased the amount they played immediately after the block started were also more likely to say they hoped to play less after the ban was lifted (45% and 24%).

Many gamers turn to streaming services for their solutions and those who tend to spend a lot of time using them every week. More than half (55%) say they spend more than six hours a week playing video games / sports like Twitch, Patreon, and YouTube.

What’s the most popular way to play?

As for consoles, there are no well-known leaders. In fact, they are relatively the same in terms of the most commonly used ones, with the PlayStation, PC, Nintendo, and X-Box being the most famous in that order.

Nintendo Switch has had the highest percentage of purchases since quarantine began (41%), but PlayStation recorded the largest number of purchases as the country slowly emerged from quarantine. Of the players with more than one console, PlayStation received the highest preference with 38%.

More than half of the players are familiar with X-Box and PlayStation subscription services (X-Box Live Gold and X-Box Game Pass, as well as PlayStation Plus and PlayStation Now). Nintendo Switch Online and EA Access also collect information from nearly half of our respondents.

In terms of membership, PlayStation Plus and Nintendo Switch online have the most subscribers of their user base (about 2/3 of the users on their platforms have subscription services – 67% and 63% respectively). Membership commencing after the blocking commences, X-Box Game Pass (15%)

the highest number, followed by PlayStation Plus (14%), X-Box Live Gold and PlayStation Now (13%).

Eight in ten (80%) players play three or more games every month through their subscription service, and that figure turns to nearly 58% if we increase it to four or more games. One-fifth of players play more than 6 games from their subscription service.

About one in five players in our survey said they were familiar with Stadia, a new player in the gaming arena – and of those who did, about a quarter were currently Stadia users. Of those who own the stadium, 72% have registered since the blockade began.

In terms of spending, four in five respondents (80%) gave free games and an esports channel to at least some of their games. But many are willing to give up if they think it’s worth it – more than half (55%) have spent over $ 50 playing games since March.

For almost half (46%), this type of fee is similar to what they normally allocate to playing games and has not changed due to COVID-19. However, more than a third (35%) said they were actually spending more because of blockages.

What’s next for blocking games and esports after they’re blocked?

Those rushing to evaluate video games and sports platforms may be interested in how many Americans have benefited from them in recent months. At a time when communicating with others and finding bits and pieces of the conversation are essential, video games offer many a form of comfort and an escape from this grim reality.

It remains to be seen whether game development will continue until the real world opens, but many gamers may try to stick with this platform not only for the gaming but also social aspects.

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Esports, the leading online gaming provider

Esports Entertainment is well positioned to capture the growing market. The company has online gambling licenses in nearly 150 countries, a world-class betting platform, hundreds of partner partnerships, and a strong management team.

Advertisers and sponsors are quick to choose sports because of their attractive demographic characteristics.

Sports fans are, on average, young (about 26 years), relatively wealthy (one-third earn more than $ 90.00).

Eports has tremendous global appeal.

Esports Entertainment (GMBL)

Recently, Public Esports Entertainment (GMBL) offered the most flexible and transparent online gaming platform for $ 3.6 billion. We started the coverage with a long-term buy recommendation and a price of USD 7.00.

Numbers cannot be added because of rounding.
Investment thesis

The eSports fan base is growing rapidly and is expected to reach 590 million by 2022. Global gross sales are estimated at US $ 3.6 billion.
The company added gambling licenses to Britain and Ireland via acquisitions in July and obtained its first US licenses in August through partnerships with casino operators in New Jersey.
Esports Entertainment has nearly $ 12 million in acquisitions, platform development, and tournament hosting. Management is the benchmark for FG: 21 sales of $ 13 million.
We started the coverage with a long-term buy rating and a price of $ 7.00, which is a multiple of FG’s estimated sales: 21.
Risk

The company has accumulated a net loss and perhaps a few years from continuing operating profit.
INVESTMENT TEST

Esports Entertainment Group is an emerging leader in online gambling and the fast growing multi-billion dollar sports betting market. Esports is a relatively new segment of online gambling consisting of competitive video games played by individuals and / or cash prize teams. The company has developed an innovative betting platform that offers betting enthusiasts better odds and greater transparency in a secure online environment and, through the acquisition of Argyll Entertainment in July, offers a first-class customer loyalty program. Esports Entertainment has accepted online betting from fans from Canada, Japan, Germany and South Africa and recently acquired a gaming license in Malta which has been expanded to nearly 150 jurisdictions including a number of EU member states.

Through the acquisition of Argyll Entertainment, Esports Entertainment also received game licenses in the UK and Ireland as well as around 200,000 registered online players. The New Jersey gambling license is granted through a corporate partnership with Twin Rivers Worldwide Holdings (TRWH). This partnership provides the US with initial support that Esports Entertainment plans to expand to other countries.

Massive cyber audience and cheap demographics. The sports fan base is growing rapidly and is projected to reach 590 million by 2022. Audience growth has been particularly strong this year due to the Coronavirus blockade, which halted traditional sports and attracted millions of new fans to online sports tournaments and events. Advertisers and sponsors are rapidly adopting exports, not only because of audience size, but also because of compelling demographic data. Sports fans are on average young (around 26 years old), relatively wealthy (1/3 have an income of over $ 90.00), and diverse geographically. Even non-endemic brands (i.e., products or services not related to exports) started sponsoring these events. Previous Esports Entertainment sponsors include Red Bull, KFC, Microsoft, Lenovo, Activision, and Konami.


Highly qualified management team. The company’s management team has extensive experience in online gambling, IT and sports. CEO Grant Johnson has led the company since 2013, and CFO Daniel Marx was previously CFO of Argyll Entertainment for five years.


The advantages of the betting platform. Esports Entertainment has developed its own online betting platform that offers better odds and more transparency than competing platforms as well as an intuitive gaming experience that feels fairer. The company plans to move the recently acquired Argyll business to its own platform, resulting in annual cost savings of over $ 1.0 million.


Worldwide game license, the first license secured in the US. The company received a gaming license from the Malta Gaming Authority in May which allows it to accept bets from residents of nearly 150 countries on its website. Malta’s online pool betting license is valid for 10 years and is renewable. The recent acquisition of Argyll Entertainment licensed Esports Entertainment games in the UK and Ireland and more than 200,000 registered users.

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FIFA has renamed its sport and built a prize pool of up to $ 4.35 million for the new season

FIFA has restructured its export tournament with three new circuits and a combined prize pool of $ 4.35 million. It has also been replaced with a new design under the motto “Fame your game”.

The three competing streams of FIFA – FIFA calls it “stories” – clearly separate players, clubs and countries from one another. This new structure is an acknowledgment of the fast growing export market and a step towards better deepening at all levels of the player.

“With our FIFAe tournament, we want to be closer to professionals, players and fans. In this digital acceleration era, we are seeing major changes in media consumption, social values ​​and entertainment stories. To be more involved with the next generation of football, we need to accelerate now, “said Christian Wolf, Director of eFootball & Gaming at FIFA.

Each of the three race streams (“stories”) has its own qualification and final route.

Players can represent their club in the FIFAe Club Series, their country in the FIFAe Nations Series or play the FIFA 21 EA SPORTS Global Series on their way to the FIFAe World Cup. Registration for the FIFAe Club Series and Global Series is now open. The qualifying round starts next month. The qualifier will play in the FIFAe Club World Cup final in 2021.

The cash prize is divided between $ 500,000 for the FIFAe World Cup and FIFAe Nations Series and $ 300,000 for the FIFAe Club Series. FIFA21 game producer EA Sports has awarded an additional US $ 3 million in prize money to qualify for the FIFA 21 Global Series, regional playoffs, eChampions League and CONMEBOL eLibertadores.

Brent Koning, FIFA Commissioner for Gambling Competitions and Group Director of EA, said: “Working with FIFA, this story will bring fans closer to the action, give players more opportunities to compete and help them find their next one.” Sports. In these unprecedented times, we have made it our duty to bring people together to celebrate club, country and personal glory. “”

With the growing ambition and presence of FIFA in the sport, a brand new tournament is coming.

With the slogan “Fame your game”, the community now enjoys a wider stage where everyone can make a name for themselves. “This is also illustrated by a brand new modular approach, which emphasizes three stories and a culture around and outside the competition,” said FIFA.

The importance of FIFA emphasizing the opportunities for rapid export growth was emphasized by Volk. “Our aim is to initiate a movement for a new category of football in the FIFA ecosystem. We want to create the biggest stage for the best players and teams in the community to shine brighter while increasing access to new entrants to the FIFAe tournament. At FIFA, we all look forward to the time that the best players and teams in the community are looking forward to it. ahead! “

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