Esports data is on the
Dear readers,
Can we first off please take the time to say an all-caps THANK YOU for reading The Esports Journal. Hats off to you, and to everyone involved in its production. It has been some year.
Somehow, we are now at the end of 2020, making this Edition 7; the final in what has been a quarterly release throughout the year. We’ve made changes to the design (note: we’re particularly proud of this one, with not one but two cover stars worth celebrating) and stayed true to our mantra of delivering insightful, long-form esports industry-focused content.
This edition we’ve interviews with Man City star Sergio Aguero, plus Q&As with the CEOs of some of the biggest teams in the world in the form of Complexity and Evil
Geniuses. We catch up with ESL post-DreamHack merger, and there are some great reads too on everything from why a 185-yearold seating company has entered the space, through to why Spotify has done the same, WePlay’s international expansion, DLC Studios, GRID (who manage to talk about pinsetting, and data’s role in storytelling), the origin of Rivalry and plenty more.
Some big news about the future of ESJ though, drum roll please. Up till now, The Esports Journal has been a direct, joint venture between Esports Insider and LMG. As of 2021 this will change, at least somewhat. Henceforth ESI will take on 100% of the creative control and delivery of the English edition, whilst LMG will do the same with the Spanish. Parting is truly such sweet sorrow
Meet the Team
in this case, as we’ll continue to collaborate and share The Esports Journal branding and name, but each focus on growing the brand in the regions and language which makes the most sense to us.
Ultimately this should make for a stronger, more global ESJ, and we can’t wait to show you what we have in-store for next year.
Stay safe, stay healthy and best wishes to you all!
Sam and Agustin
Sam Cooke Managing Director & Co-Founder ESI Andrew Hayward Content Lead The Esports Journal Agustín Cikes COO & Co-Founder LMG Pablo Monti Editor LMG Billy Studholme Journalist ESI Jamie Wootton Journalist ESI Tom Daniels Sub-Editor ESI & ESJ Cody Luongo Journalist ESIAbout Us
Based in London and founded in 2016, Esports Insider is an industry focused esports news platform, B2B agency, media and events company.
ESI runs a world leading and international esports industry news site, operates The Esports Journal magazine, and has run more industry events than any other company globally, from London to Los Angeles. Other arms of the company include ESI Media, and ESI Connect which assists brands, investors and suppliers with strategy and a route to market via esports rights holders.
EsportsInsider.com - One of the leading esports industry focused platforms worldwide. We feature the latest news stories from a global perspective, alongside opinion pieces, and interviews with those making waves in esports business. We also have magazine publication; The Esports Journal, and a twice weekly newsletter, the ESI Dispatch.
ESI Events - We run esports focused events and have produced more esports business events than any other, globally. These have included the Forum Series, ESI London, the annual ESI Hall of Fame and ESI NYC. We offer white label events services too.
ESI Media - We offer B2B and B2C content services (editorial, podcast and video), which can be via ESI channels, or it can be fully whitelabel, and we have the print magazine The Esports Journal, which we run with our partners LMG.
ESI Connect - ESI Connect sits in-between current esports rights holders and companies seeking to do business the right way, without all the hassle. Acting as a media house, translator and mentorship group, ESI Connect will evaluate what you seek to do, propose the best fit, initiate the right contacts and support you in the delivery of your plans. Find out more about ESI Connect on the site, and you can drop us a line at info@esportsinsider.com to apply.
About Us
Based in Buenos Aires and founded in 2016, Latam Media Group was launched to bring a new concept in communication, networking and content creation.
Latam Media Group is a media group specialized in the Latin American Gaming industry. Its expertise in public relationships let them multiply their business audience, building a selected and exclusive network that acts as a guide to keep evolving in the right direction.
LMG now organizes events, VIP dinners, conferences and summits for the Latin American gaming industry.
Betting Mgz - The first and only magazine focused on the online gaming industry in Latin America. It´s distributed in the main events of the region, reaching the main operators, suppliers, regulators and businessmen.
LMGMAS.com - It´s one of the leading websites of the Latin American gaming industry. Apart from promoting the latest trends of the companies and the executives, LMGMAS makes the difference with their innovative way of communication, exploiting all the resources that social networks and new trends allow.
All the content is perfectly segmented, according to the interests of each of their readers. This is:
Esports Industry: All the information related to esports industry, focused on Latin America with a worldwide perspective.
Gaming Agenda: Exhibitions, Conferences, Summits and Webinars.
LMG Eventos - Thanks to our daily contact with the whole industry, we know the needs of our clients. That´s why we organize events that fit perfect with their demand. Some of our events:
Esports Brands Conference
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Bringing esports to schools and making a difference with Game Changers.
EDITION 4
ICE Esports Arena | February 4-6
Esports BAR Cannes | February 11-13
EDITION 5
ESI Digital Summit | May 25 - May 26
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EDITION 6
Esports BAR+ Americas | September 22-25
ESI Digital Summer | August 17-21
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EDITION 7
ESI Digital Winter | November 18-19
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The Esports Journal Management Team
Sam Cooke
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Pablo Monti - Editor - LMG
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The companies and executives that make esports one of the fastest growing industries worldwide
Sergio “Kun” Agüero
Argentinian international, Premier League record breaker and esports team CEO
AUTHOR Pablo Monti @PabloMMontiSergio “Kun” Agüero, the player with the most hat tricks of any footballer to ever grace the Premier League and the striker who is equally adored in both Argentina and Manchester (at least the blue part), entered the esports space in October 2020.
In doing so, Agüero became perhaps the most notable person to enter the esports and gaming space for Spanish speaking audiences, but his first moves were actually a few months prior. It was Kun’s 11-year-old son who was crucial in his decision to start streaming on Twitch during the pandemic.
Step by step, Agüero’s streams became more and more serious, and moreover he was getting into esports too. He played with pro FIFA player Yago Fawaz at EA Sports’ eNations Stay and Play Cup, with the pair representing Argentina. Fawaz has since become the first player to sign for Kun’s team.
The Esports Journal had the opportunity to talk with Sergio Agüero about his brand new esports organisation, Krü Esports. The name combines the K in his nickname (Kun) and the ü in his last name (Agüero) and is also a phonetical spelling of the word “crew.”
The Esports Journal: How and why did you decide to launch your esports organisation, and how much of an impact did the COVID-19 pandemic have?
Sergio Agüero: It started casually, but it soon began to take shape and become more of a concrete plan. I started streaming during the lockdown after my son and my brother told me to. I found out about Twitch and thought: Why not
give it a go? It was mainly for something to do during the quarantine, to be honest, and to entertain people. But it ended up becoming the beginning of this project, and now it’s a reality.
During the first streams, I made contact with many people from the gaming world and found out more and more about this phenomenon, about esports. This led me to investigate a bit more, and many from the world of gaming were very generous with their time, helping to explain things to me and giving me advice, mostly to improve my streams. With their help, I quickly reached more than 2.5 million followers on Twitch! Even the staff from Twitch reached out to offer their help too.
It was during this period, via the streams and participating in gaming events, that I came up with the idea of creating my own organisation. It was then that I wanted to know more about the esports ecosystem and learn as much as possible about this “new world.” Of course, it was due to the ongoing pandemic that I had more free time to allow me to keep learning!
Each conversation I had I learnt and strengthened my belief in creating and launching a team! My thinking was, and is, to utilise my experience as a professional player at Manchester City to replicate that with my team. City is a club that, from the moment that Sheikh Mansour arrived in 2008, had the ambitious aim of making history as a club, of building something historic.
I’ve been playing for City since 2011, and I witnessed that progression firsthand. I was and am a part of its growth. I saw them setting a goal and moving closer to it each year. They did that by
planting solid roots and a long-term, detailed plan. We now maintain one of the best squads in Europe, a top global training centre, and a well-managed and established academy system where the young players train and progress.
Titles and silverware aside, City is one of the greatest clubs in the world. I want the team to have that same vision. To achieve that end, I needed to gather experts for every area. I wanted to make an organisation that respects the growth process, with clear goals to consolidate in the esports world in the medium-term.
ESJ: Let’s talk business! What are the
expectations of Krü as a company?
SA: We have a unique business vision. To achieve that, I knew from the beginning that I had to give the club predictability in terms of organisation, budget and performance objectives.
I defined each aspect with an organisation chart that has a team manager, accountants, lawyers, marketing team , as well as coaches and nutritionists for the players. I contacted everyone personally and laid out these objectives. I was lucky to have them thinking just as I did, and they are now with me! I was able to bring together some very professional people, so when we went into battle the roots were strong
“Silverware aside, City is one of the greatest football clubs in the world. I want my team to have that same vision”
enough to compete in this thrilling but highly competitive world.
Of course we know there will be a period of consolidation, and we don’t want to miss that. As in the case of Manchester City’s development, if we achieve those early stage, first goals, we will build for the future. The idea is to give all we’ve got, but without the pressure of having to win and be the best right now. I know as a professional football player that you lose more than
you win, but if you do things right and build well with the right people involved, you are much more likely to win big.
We want to make Krü a club that grows piece by piece, but in a sustainable way both in sporting and economic aspects. To be clear though, Krü is not a hobby. We are an organisation that wants to grow and become a club that fans will choose to cheer for.
ESJ: Did you expect such positive feedback from fans and industry stakeholders? It has been massive.
SA: I was hopeful! I’d had a very good response with my Twitch broadcasts, but this was different.
Although it’s my club, I’m not the one playing. We are lucky that fans and brands jumped in from the beginning and that they linked the team with me. I know I’m a pro player at Manchester City, and that’s my primary focus right now.
My mission is to help Krü expand, but while knowing how to delegate
responsibilities to someone else. That’s why my goal is to help everyone develop within the organisation and accomplish the club’s goals. Of course, I’ll be paying a lot of attention too, mostly to maintain the spirit of the club.
I also want to pass on our values such as fair play and commitment to the community. I believe that people understood that and the “Let’s go play” - which started as a fun phrase in my broadcasts - was well-understood. I’m truly delighted about feedback from fans, brands, and the esports scene. We even reached people with no experience at gaming and esports. Within a few days, we had more than 25,000 people registered at the Krü website, and we’ve more than 100,000 followers on Instagram and over 50,000 on Twitter. Every time we announce a new player, we get positive reactions so I know we are doing things the right way!
ESJ: With your experience at football, what do you imitate at Krü?
SA: I was lucky to start my professional football career at a young age, and I always tell the story of when I played my first game in the top division at the age of 15 .
I wasn’t able to fully understand what was happening, but I had excellent
guidance and mentorship. I was smart enough to listen to them and learned from all my coaches, my fellow players, and managers. I had the chance to move to Europe at 18, and it was a gamechanger. I learnt about all aspects of being a professional, how to take care of myself, and manage my nutrition. I also learnt that it’s all about teamwork, how one person is never more important than the team. I understood how important a club can be if it’s wellorganised and has clear goals.
All that experience I’ve amassed through my 17 years as a professional has let me create Krü, and that’s what I want to develop. I will always strive and go above and beyond to seek that same commitment and passion.
ESJ: What are the team’s mid-term and longer-term goals?
SA: As we mentioned at the launch event and I wrote on Krü’s website, we want to gather a team of people passionate about video games. It’s key to note here that I’m not talking only about players and content creators, but also about the entire staff and the community we are creating.
We want to banish the negative misconceptions around video games and esports and be a bridge between regions too. We’ve a strong presence in Latin America but we’re always open to the wider world, where the biggest competitions take place. We will help our team to develop: players, coaches, analysts, managers, and streamers.
We will give them the tools to develop themselves to show the world their potential. We do this step-by-step. We’ll start with FIFA, and then we will expand into other esports titles.
ESJ: Do you dream about seeing Krü amongst the biggest esports clubs in the world?
SA: Why not? Of course, though we want to take it step-by-step. When I started playing football, I dreamt about playing at the top level and playing for my national team. Although I accomplished that at a young age, I worked extremely hard to make it a reality, and it was something I put my heart into. I now want to translate the same level of focus and drive into this project, and if we do it the right way, why not dream big?
Living Evil and loving life
Since being acquired by PEAK6 Investments in May 2019, the 21-year-old Evil Geniuses organisation has made major moves, including appointing Nicole LaPointe Jameson (from PEAK6) as CEO, entering Riot Games’ League of Legends Championship Series, and launching a rebranding effort that drew criticism at first but ultimately landed well once fully finalised.
Even amidst the turmoil of the COVID-19 pandemic, Jameson tells The Esports Journal that Evil Geniuses has expanded its staff and added new sponsors, all while pivoting to support existing partnerships as live events were put on hold. We caught up with Jameson
AUTHOR Andrew Hayward @ahaywa“I firmly believe we can be the first competitively, financially, and culturally successful esports org”
to discuss the team’s prosperity in a challenging time, ultimately finding its way with the rebranding, and how she’s put her own stamp on the organisation thus far.
The Esports Journal: How has this year been leading Evil Geniuses through the challenges posed by the pandemic?
Nicole LaPointe Jameson: This year has been interesting. COVID’s impact on esports has been, I’d call it, bifurcated. EG internally, I think, deviates from the norm. By the blessing of pivoting and being thoughtful on how to continue to deliver value to partners and demonstrate value as a product, we’ve actually brought on four new partners this year - even though marketing budgets have been halted and spending is much more cautious.
In terms of retaining current partners, we’ve had to be very creative around things that historically revolved around in-person activations or events. How do we pivot to continue to keep, not just the partnership happy and show value, but also keep the dollars? It’s been an exercise that none of us have had to go through before, as have many in the world.
This is where the beauty of esports was able to shine, because the core of what we do, the competition, was able to continue relatively congruously. The beauty of a global, digital product, especially in juxtaposition to professional sports today, really worked in our favour. We’ve been able to continue on our growth trajectory - probably not at the magnitude we were hoping, but it definitely wasn’t an impediment - while being thoughtful to what’s happening in the rest of the world.
However, how we’ve tackled partnerships and cultural initiatives, knowing the new nuances that exist in remote environments, especially when the esports employee base skews
younger and more global - we’ve had to flex muscles we haven’t had to flex before. But I am grateful for my team and all of us in that we’ve been able to continue without layoffs. We’ve been able to hire and grow and expand in this time, which I know is very atypical from the norm, even in esports.
ESJ: Can you talk a bit more about those pivots you’ve had to make in terms of digital deliverables and how your partners have responded to that?
NLJ: There are two trends in terms of how we’ve pivoted and flexed to continue to bring in partners and drive value for partners. The first is that direct marketing spend, especially for consumer product goods where supply chain or demand has been impacted, has shrivelled up or halted. We’ve had to pivot into ways where budgets were functionally untapped or not stuck, as well as hit value in what I’ll call the emotional sentiment of this time. A lot of our partnership activations previously would have been competitive, like player meet-and-greets, or coming to the facility. They’ve now had a charitable goodwill or community engagement angle, highlighting how esports and our brands care about community impact and recovery.
Esports is also able to shine in how we’ve had to pivot some activations. For example, Razer, one of our longertenured partners, has been generously building out a scrim room and VOD room in our facilities that now no one’s seeing. So making sure we capture it in content rather than a public-facing event has been critical.
When we bring on new partners, in particular Motorola and LG, who are non-endemic brands to the space, we were some of their first entrants into esports in the US. We’re showcasing value and making sure: OK, originally we were hoping for an event where everyone could see [LG] monitors, but now it’s remote giveaways and streams,
and things that can be done through the digital access of our platform. That’s where we’ve had to really focus and hone in on.
ESJ: Do you think esports is wellpositioned to continue weathering the impact of the pandemic as it stretches on?
NLJ: This is where I think EG is a bit different than probably the mainstream of esports, and bear with me as I put on my private equity hat more than my esports CEO hat here. The problem with esports is that the funding structure, generally, is venture money or traditional sports money. Both of those fields have been pounded heavily in COVID times, as traditional sports and live events have ceased and venture money is looking for dividends and liquidity in uncertain market times.
While esports at its core is still able to do what we do, the source of money is shaky. Then you add a product like esports that - to not be overly impolite - is still developing and still finding its own legs to be self-sufficient from a monetisation and revenue standpoint, it’s a relative on paper higher-risk situation to be in. That being said, I am by position an optimist and I’m biased.
What I think is beautiful is that the pandemic has made everyone question and revalue what is valuable from an asset perspective, in terms of investments and partnerships. Esports, the core product, is the most sticky thing that’s existed so far in an entertainment sense, and there probably will have to continue to be pivots on what is important and valuable. Does the geo-affiliation tournament strategy make sense? Do big facilities and arenas make sense? Those will be questioned but esports as its core, I still firmly believe, has only shown that it’s strong and robust to change in this time.
ESJ: Can you talk a bit about leaning into the “Evil” part of the team’s name and making that a central part of the identity?
NLJ: This was a fun exercise for us when we redid our branding and honed in on not just how we visually appear, but how we want to tonally appear, and our values that we wanted to make much more public-facing. This is an identity. When we were doing our discovery period, finding our brand voice was not just about where we want to go, but who we’ve been.
Talking to previous EG alumni, our players, and our competitors, how we’ve been perceived in this space over our 21-year history
helped develop and define what our voice is today. The notion of the “team to beat,” the “heel”, the “beat of their own drum” identity was something we found transcended almost any time period, any ownership group, and any team that EG ever had. There was this unspoken, and now spoken culture, of: We promote individuals to be their best, and we support the individual.
That translates really well into what I’ll call the redefinition of “evil”, almost like “wicked”. We don’t use it maliciously; the little bit of the avant-garde, the antihero-esque personality. We try not to forget the “Genius” side either. It’s not evil to be evil or punchy to be punchy. It is because we have a plan and are thoughtful of where we want to go, and we let the results speak for themselves.
That’s a fun identity to play into, right?
It’s a higher-tension character archetype if you were to define a brand as a character. As organisations struggle to have identities beyond their players,
which are high-churn, having a brand name and face that is distinctive and shines uniquely has been a really fun thing for us in how we’ve been able to operationally and creatively play with it.
ESJ: What sort of takeaways did you have from the process of getting the rebranding to its final version?
NLJ: Never underestimate the amount of time it takes and the amount of iterations. There was a solid threemonth period where we essentially went through two rebrands. We rolled out
ESJ: Do you feel like you’ve put your own personal stamp on Evil Geniuses so far as CEO, or feel like you run things differently from other esports leaders? NLJ: I feel like this is a loaded question. [laughs] Besides, some of the other LCS team owners, who I will not name, call me the esports boomer, which is depressing considering I am the youngest team owner.
I was put in here by the parent company not haphazardly. Not just because I love esports, but personally before this, I
well; we really had to hustle to flesh out the rest of our brand identity. The first time, we leaned heavily on external experts, but we really showed that the value of the endemic voice was a critical component to how we need to shape something that helps us move forward. Because we didn’t change for change’s sake, we had to change for both design reasons as well as identity reasons.
Our old brand didn’t serve us in the manner we needed it to, but we also had to be thoughtful to our legacy and our history more linearly in order to continue to engage and not isolate our fans or our community, because that’s not what we wanted to do whatsoever. The second time around, I think we hit that balance much more successfully. That was a much deeper process in understanding the emotion, as well as the design and the values that people care about as it relates to an esports organisation.
had great business success working in distressed asset turnarounds - taking a product that is struggling and quickly getting it up to speed, up to table stakes. That’s what I have been born and bred and fine-tuned in over the last five years of my career, and so esports, and EG in particular, that’s what they needed.
When I had entered, there was no clear ownership group. We were still reeling from the divestment of Twitch. EG was player-owned and had a COO, but no CEO at the time. They were doing a fantastic job of keeping their Dota competitive presence still at the standards people expected, but behind-the-scenes, there wasn’t much. So when I came in, I tried to hit the balance: I’m tongue in cheek, but business leadership was needed.
I’m sure that’s a new and sometimes spooky thing in esports, especially to the old guard of this space, but I came in to make sure this was a viable company while also not losing the fun and joy
of what an esports team is really here to do: which is to lift trophies and be competitively successful. But I knew I had to come in and lead, bridging not only competitive success but also cultural and financial success, as well. Those two themes might seem obvious to any other business industry or vertical, but a little less obvious to esports teams today.
ESJ: What is your ultimate vision for Evil Geniuses and how do you get there?
NLJ: I know it’s a grandiose one, but I firmly believe we can be the first competitively, financially, and culturally successful esports org. It’s no big secret: esports teams struggle to
monetise today, but we firmly believe the sport’s product, in the few years to come, will demonstrate and flesh out so we can be financially self-sustaining and exceedingly profitable as well.
One thing I’ve been very vocal with, and my team has very much rallied behind, is that we also know we have a duty to shape the ecosystem as we believe is best. It’s still malleable, it’s still growing, and making sure the space is inclusive to not just people out of this space, but
for people of all walks of life. Whatever way you want to slice the diversity pie, it can’t be gatekept if it wants to scale. Doing that in a nonthreatening and authentic manner, the teams are best suited to spearhead that movement. We’ve taken that responsibility seriously in trying to push and be a beacon that the best of the best can compete and work at EG, and hopefully, that will drive other teams to follow to keep up.
Resilience, frustration and new connections in complex times
In 2019, Complexity Gaming opened its lavish GameStop Performance Center headquarters in Frisco, Texas as part of the Dallas Cowboys’ extensive The Star campus. Packed with sponsorship activations and created with big plans for fan events and collaborations with the NFL team, it was one of the most prominent launches of an esports facility to date.
A year later, the headquarters sits largely unused thanks to the COVID-19 pandemic, with pro players training and competing remotely, and planned events cancelled. In a year that has impacted every corner of the
esports industry, it’s an added layer of frustration for Complexity Gaming. And for founder and CEO Jason Lake, known far and wide as one of the most enthusiastic leaders in esports, being stuck at home has been a tough hit.
Complexity has adapted, however, and so has Lake: the organisation has amplified its content creation efforts and attends to its players from afar, and Lake himself has launched personal content channels to maintain his connection with fans in a new way. The Esports Journal caught up with Lake to make sense of a strange year running a prominent esports organisation.
“Esports is here to stay, and I think this year only proves it even more”
The Esports Journal: Can you talk about the overall impact of the pandemic on Complexity and how you’ve had to adapt?
Jason Lake: Overall, while esports has definitely proven resilient and we’re experiencing record-setting viewership, esports teams have been impacted both operationally and on the sales side.
In Complexity, everyone’s been working remote, which is frustrating. We haven’t been able to have some of the public events and things that we’ve built our headquarters around. We’ve shifted to more of a strong emphasis on content creation to keep the fans engaged, and we’ve been really focused on putting the players first and making sure that wherever they might be in the world, that they’re safe, healthy, and able to compete.
ESJ: How has it impacted the way that you approach sponsorship deals and partner activations?
JL: A lot of our sponsorship sales and partner activations included more in-person touchpoints around our headquarters and around the larger property that we share with the Dallas Cowboys, so we’ve had to pivot and add a lot more digital deliverables. It’s an unfortunate side effect of what the entire world’s going through right now, but I’m very grateful and feel blessed that we’re able to pivot digitally in esports.
There were lots of traditional sports that simply had no touchpoints for months and months on end, while we were able to pivot and deliver digital ones.
ESJ: Have you found that your partners have been receptive to those pivots?
JL: Yeah, absolutely. Our partners understand the world and the way it is right now, and are grateful that we can shift some of the deliverables, whether it be content or digital fan engagements, things like that.
ESJ: A lot of your activation plans were based around the GameStop Performance Center, which opened less than a year before the pandemic struck. Has that space largely been in limbo the past several months?
JL: It has. It’s pretty disappointing to build one of the best esports facilities in the world and then have it shuttered.
It’s partially open to employees who need to go in for their work, and then they go through different safety regimens from masks to social distancing. But none of our professional players have been actively training in the facility.
Our Counter-Strike team has actually been in Europe throughout the majority of this. Three out of our five players are from Europe, so they’re home, and then we’ve had a couple of other players living in different countries depending on what month it is. And we’ve sent support staff and content crews to make sure that they’re comfortable. We’ve gone to extreme lengths to make sure our players are provided for, including one instance of a private jet when commercial travel just wasn’t safe.
It’s a strange time, but we’re doing all we can on the organisation side to make sure that we’re putting our players first and that they’re healthy and happy.
ESJ: Traditional sports have been deeply impacted by the pandemic. How that impact also affected Complexity by association?
JL: We’re very interwoven with the Dallas Cowboys organisation and tend to collaborate with them on multiple endeavors.
A lot of those collaborations, due to the NFL’s strict safety protocols, have been delayed or canceled this year. We followed their lead when it comes to office, workplace, and player safety in different areas, and are grateful to have that “big brother,” if you will, to help us
carve out our own safety protocols. We have a sports psychologist that communicates with players over video chat like this, to make sure everyone’s heads are in a good place and they’re healthy, and it’s nice to have those resources to lean on.
ESJ: As somebody who is very enthusiastic about esports competition and Complexity, how has it been for you personally to not be attending live esports this year?
JL: It’s been a very surreal year for me, personally, as I spend a tremendous amount of time on the road and attending events and meeting fans, speaking at conferences, and things like that.
It’s been good on one side, where I’ve been able to spend much more time with my family, and I’m very grateful for that. But for my day-to-day job of running Complexity, I think it’s honest to say that it’s been pretty frustrating. I’m much more of a face-to-face type of person than I am a Google chat or Zoom call guy, so I do look forward to getting back on the road and hanging out with the fans and watching our players compete face-to-face.
ESJ: How has Complexity shifted its fan engagement and content production efforts?
JL: We’ve really tried to increase our content production, both with our influencers like Maddy and Electra and others, and also with a new CS:GO YouTube channel and our series, “Through the Smoke.”
When you’re not able to engage your fans face-to-face, I think the only alternative that makes sense is providing more content for them and having more fan engagement. We’ve been actively revamping our Discord channel, and I’ve personally been attending our Counter-Strike games in the fan cams and watching the game with our fans
digitally. It’s not quite the same thing as sitting in the stands and high-fiving them, but it’s a digital version. We’ve done lots of little things like that to try to keep our fans engaged and to let them know that we’re still actively behind our teams and behind our players, and doing our best to provide them a great experience if they follow our organisation.
ESJ: What motivated you to launch your own Twitch and YouTube channels this year?
JL: You know, more than anything, it was just the extra time I had. When you take away work dinners, airports, hotels,
out there, and start a Twitch and play some games and have some AMAs. I’m just trying to expand my brand and the Complexity brand, and be able to engage with fans in 2020, so I try to take advantage of that extra time and fire those up.
ESJ: With Complexity’s content team nominated for multiple Esports Awards this year, what is it that you think makes Complexity’s content so engaging?
JL: We went to great lengths to hire
ESJ: Looking ahead, what gives you optimism that esports can prevail through this pandemic and come out just as strong, if not stronger?
JL: I think it’s safe to say that we live in an attention-based economy, and anywhere that you can drive enough eyeballs to an ecosystem, there’s going to be a tremendous amount of revenue that eventually follows. Esports has proven to be incredibly resilient in that, although we didn’t have our live events, our online events that the different leagues put together were driving record viewership.
speaking at conventions, and all of the things that I do that devour so much of my time, I find myself with extra time.
I’m generally not the type of person who would just sit around and watch Netflix for hours on end, so I was asking myself: How can I engage with people who are interested in engaging with me? How can I expand what Complexity’s doing and provide these platforms?
The obvious answer was: Hey, let’s start a YouTube and put some content
really talented, passionate people in our content team. I think they have gone... not overlooked, but maybe a little bit under-respected for the quality of content that they deliver. Our “Through the Smoke” series, in my opinion, is one of the best series in esports history, so I’m grateful that they’ve been recognised with these nominations and encourage people to definitely check out our content channels.
Viewership means that we have a very compelling product, and we’re attracting new fans and new players that is going to lead to an even healthier and larger ecosystem in the future. It’s definitely been a frustrating year for everyone in every industry, but I think esports is proving that it’s not a blip on the radar; it’s not a bubble that will pop.
Esports is here to stay, and I think this year only proves it even more.
The Giants grow even larger
AUTHOR Pablo Monti PabloMMontiGiants Gaming wants to be in the spotlight. During this exceptionally unique 2020, the Spanish organisation closed an investment round of €3 million, which allowed the firm to buy fellow Spaniard club X6tence and content generator BCN Fighters. A few months ago, Giants also announced the acquisition of Esportmaniacos, one the most relevant esports media outlets in Spain.
All of that growth has led the organisation to rethink its structure and to face the business from a different angle. This is how Good Game Group was born along with its three main verticals. GG Esports is the competitive side and features Vodafone Giants and X6tence. GG Media has Esportmaniacos, BCN Fighters, and GG Studios, a content production company for brand partners. Finally, GG Product is focused on gaming merchandise, including apparel.
José Ramón Díaz CEO & CO-OWNER GOOD GAME GROUPThe Esports Journal chatted with the company’s CEO and co-owner, José Díaz, about its launch, how Good Game Group sees the industry, and esports’ future in general.
The Esports Journal: When you were working on creating Good Game Group. Was it obvious to launch it as a new business?
José Díaz: We have been talking about it during the whole year after closing the investment round and acquiring different companies. We had a clear picture of where to go in our business, and the strategy was to create this group which lets us have different business verticals. We can work much better both internally and with our partners.
As a company, Giants Gaming needed to evolve. Our goal is to turn this group into a holding, which hasn’t been created as of yet. It will allow us to have different companies for the different activities we are into.
ESJ: You have three verticals right now. Do you see the firm entering into new ones soon? Where do you think the business is going?
JD: There are so many possibilities. Sometimes we think about that, and I say “please hold,” because we don’t have
enough hands to do it all. We haven’t ended one thing, and we are already thinking about the next one. We have three verticals today, and we can grow on all of them.
With GG Products, we can add apparel, which we have been doing with Giants. We are also interested in data, since we have so much information within our group. That’s something we are studying and we are interested in. Another possibility is to create a content creators agency and to relate with other entertainment industries such as movies, music, or fashion. Summing up, we have broader plans, but right now we
to do - many things to grow, and many opportunities - but not in the way we are participating now. Back then, we were just an esports club and not much more. It’s also true that much of what we see around us now didn’t exist.
ESJ: How much did the investment round accelerate your plans?
JD: A lot. We wanted those funds to invest and keep growing, and that’s what we have been doing. Our initial plan had some other things that we weren’t able to do because of the COVID-19 pandemic. For example, our expansion to Latin America - which remains on our schedule - is something that needs to be
are focused on those three verticals and we will be working hard on them until at least 2022. Then, we will see.
ESJ: When you entered Giants, did you imagine any of this?
JD: Not at all. [laughs] We knew esports was the future when we got into this. We started as Giants’ owners in 2012, although we had been involved since 2007 with partnerships and other actions. We knew it was something to pay attention to since it was going to explode someday. If you would have said to me in 2012 that in 2020 I would be doing what I am doing, and how I am doing it, I would have said: “You are crazy”. We did see lots of things
done correctly. It’s a huge risk and has costs we need to organise. On the other hand, we executed other plans that were not on our initial schedule. We have been capable of reacting fast, seeing opportunities, analysing if they are a fit, and deciding to do them.
ESJ: What are your thoughts about the esports industry’s near future ?
JD: I believe it’s exciting, and we will continue to grow. The COVID-19 pandemic has affected many and it will give us a weird 2021. I don’t know what will happen and when. I believe it will be a good year for us, and that audiences will continue to grow. Even though Spain will face a crisis because of COVID-19,
our schedule continues to have growth in 2021. I strongly believe that 2022 will be a great year in which we will step forward. Regarding the esports industry, I believe that the people involved will be able to grow a lot since everything will.
ESJ: Is the esports industry somehow safe from the global economic crisis due to the pandemic?
JD: I believe it is. During these complicated times in which we are living through traumatic situations, we - as an entertainment industry - are somehow a way out for many people. Spain is a country that lives on tourism, and that generates problems in a situation like the one in which we are living in. When
something like this happens and people can’t travel, we see that we are not prepared to face it.
We continue doing what we know, and that’s why we work on GG Media. We know content creation is really important, and it’s a place where we can grow bigger. The global pandemic affects us, but not as much as the tourism industry.
ESJ: Is it possible to make a living out of the sporting aspect in esports? Or is it mandatory to do something else, such as content generation?
JD: A few organisations can make a living only out of the sporting aspect.
We are talking about the top teams in the world, and they also work hard in content generation. Content is fundamental. You can win many matches, but if no one finds out or you don’t know how to sell it in a way that people can enjoy, you are missing something. Sporting results are quickly forgotten. Being able to create content around that adds value. Esports content is as important as results and is a must. We can discuss how you generate them, but you must generate them.
Spotify: Why the streaming giant invested in esports
For Spotify, the esports experience started with the Leviathan.
Worlds. League of Legends. Without a doubt, the crownjewel of competitive gaming. Where Faker rose as esports’ answer to Michael Jordan; where Invictus Gaming betokened the shift from South Korean to Chinese dominance; a tournament watched by more than 100 million people last year. The pinnacle of esports already compares to some of the world’s biggest sporting events.
When it came to esports, Spotify never had any intention of dipping its toe in.
“I’ve become a fan myself,” said Neal Gorevic, Global Head of Marketing Strategy at Spotify, on Riot Games’ showpiece title. Indeed, Worlds can be awe-inspiring: “I had the opportunity to attend a live Worlds game last year, and was so impressed with the level
of production that goes into the entire tournament.”
In August, the audio-streaming platform announced it had agreed to a multiyear deal with League of Legends. Since then, the audio-streaming titan has unveiled LoL-related activations in the Spotify app.
Untold Stories, an exclusive nine-part podcast series, explores important moments in Worlds history. Music playlists such as “This is League of Legends” and “Road to Worlds 2020” are also exclusively curated. “Keep an ear out for more coming soon, too,” Gorevic added on Spotify’s music playlists.
League of Legends as a competitive game is, by almost every metric, top of the class. Spotify’s partnership with Riot
includes sponsorship of Worlds 2020, as well as 2021’s Mid-Season Invitational (MSI) and All-Star Event. Investing in LoL’s major events is a bigger deal than investing in most esports titles; LoL’s reach is global, and international expansion is a priority for Spotify.
“As we work towards our goal of becoming the number-one audio-streaming service in the world, we see the gaming entertainment industry as a critical area for engagement,” said Gorevic.
Spotify’s esports entrance is part of its “ubiquity strategy”: ensure Spotify is everywhere, and can be used however consumers decide to use it—whether it’s during a commute, on a game console, or through at-home speakers. Indeed, despite having a user base of almost 300 million listeners, and now more than 1.9
million unique podcasts on its platform, Spotify has never turned an annual profit. Right now, the strategy is to grip the streaming market tightly and worry about profit later. League of Legends esports is, for Spotify, another gateway to the ears of gamers—and gaming is a goldmine.
“We have an active Spotify Gaming Community internally that meets regularly and facilitates events”
In its Global Games Market Report, Newzoo reported in May that there are 2.7 billion gamers worldwide, projected to spend around $159.3 billion (~£122.51 billion) on games in 2020. PC gaming’s year-on-year growth rate is £28.37 billion, or 4.8% (LoL is currently only available on PC). Put simply: gaming is massive, and makes a truckload of money.
“Gaming and music have a very natural synergy,” Gorevic told The Esports Journal. But why esports? Why not create a partnership without LoL’s competitive events, if the aim is global dominion over audio streaming? League of Legends is popular enough on its own; it is the world’s most popular PC game. Why not strike a deal with Riot that doesn’t include esports?
First of all, Spotify does undertake gaming partnerships separate from esports. “Over the years, we’ve launched integrations with partners such as PlayStation, Xbox, and Discord, all of which have been successful at a global level,” Gorevic commented. Secondly— and crucially—a large proportion of League fans play the game and follow the pro scene.
As of 2019, 68% of LoL fans watched competitive play, according to Statista. Even in comparison to Counter Strike:
Global Offensive, this is a high number as only 51% of CS:GO fans watch the game’s competitive matches. This is noteworthy because CS:GO was the second-most popular esport in the world in 2019 according to Esports Charts—behind only League of Legends. Even among esports giants, LoL towers the highest by far, and boasts an esports following of two-thirds its user base whilst being the world’s most popular PC game. What’s more, 26% of LoL fans only watch competitive matches without playing the game themselves. League is colossal, and its esports scene is far-reaching.
Unsurprisingly then, Spotify was tracking Riot Games for a while. “In our research, Riot Games was top of the list of brands to collaborate with. They have the widest global reach of any esport, with broadcasts in more than a dozen languages, and consistent, recordsetting viewership,” said Gorevic. “Many of our employees at Spotify are gamers themselves—we have an active Spotify Gaming Community internally that meets regularly and facilitates events. It felt like a very natural progression to explore a new global partnership within the esports space.”
Sponsoring LoL esports also allows Spotify to specialise with its activations. Of course, straight brand advertisement for Spotify is front and centre at Worlds, and will remain so at the MSI and All-Star events next year. Riot has also offered brands immersive promotions this year through the use of in-game ribbons, scattered across Summoner’s Rift—the LoL battlefield—that bear the logos of sponsoring brands. But more than that, by sponsoring LoL esports, Spotify has an excuse—incidentally or otherwise— to specialise its in-app activations to events like Worlds; think Untold Stories, the exclusive podcast series.
This year it has become apparent that podcasting is clearly prioritised by the company. In May, Joe Rogan shocked
the world by announcing that his show, The Joe Rogan Experience, would be posted exclusively to Spotify, with the deal worth over $100 million (~£76.87 million). Spotify also acquired The Ringer— a podcast-focused sport and popular-culture media network—for close to $196m (~£150.63m).
Accordingly, Untold Stories came to be when the agreement with Riot was penned. Spotify wants to engage all types of gamers by covering all types of audio consumption. “Thanks to our extended partnership [with Riot Games], we look forward to evolving this podcast over the years to come,” Gorevic said in reference to Untold Stories.
With its huge market share, Spotify can and does invest heavily in personalising the user experience, sacrificing shortterm profits in exchange for providing a sweeping, personalised experience.
“Innovation is at the core of what we do,” said Gorevic. “Spotify is always pushing to ensure a seamless connection with the best-in-class gaming partners, making [the discovery of] new music and podcasts easier than ever.”
Gorevic did not comment on whether Spotify will invest in other esports titles. Regarding the current deal with Riot, however, he teased: “This is a long-term partnership with Riot Games, and it is just the beginning. You can expect to see more details to come in the future.”
As evidenced by its internal “Gaming Community” among employees, gaming lies at the heart of Spotify’s culture. “We have some avid gamers at Spotify who are big League of Legends fans and play regularly,” Gorevic added. “Since we announced our partnership, the excitement has only continued to grow.” While there is clear economic incentive to sponsor League of Legends esports, one can’t help feeling that Gorevic’s taste of Worlds last year, at the very least, made the decision easier. “The energy you feel is unparalleled,” he concluded.
The new Co-CEO breaks down the DreamHack merger
Andrew Hayward @ahaywaESL and DreamHack have been sister companies under parent Modern Times Group (MTG) since 2015. They’ve increasingly found ways to pool their collective resources towards a better, more unified product. Most notably, the ESL Pro Tour for Counter-Strike: Global Offensive was planned to span global events across both brands in 2019 before the COVID-19 pandemic took hold.
At the end of September 2020, the companies announced that they had made this union official, merging under the ESL Gaming umbrella. ESL co-CEO Craig Levine told The Esports Journal that the increased collaboration between the firms ultimately led to the merger.
“We started to see the obvious success,” he said, “so it was only the natural next move to say, How do we put these organisations together now in an even deeper way to continue to position ourselves uniquely going forward?’”
Craig Levine co-CEO ESL GamingIt is important to note that ESL and DreamHack will both continue on as separate brands to target their respective audiences and strengths within the esports and gaming ecosystem. ESL is more focused on the competitive side of things with its “zeroto-hero” mission, providing competition to newcomers all the way up to the toptier pro players. DreamHack, meanwhile, will continue its community-centric events and experiences, although there’s plenty of room for crossover.
“We have an amazing talent pool to build a joint organisation,” said Levine. “The ‘e’ in ‘esports’ makes it really distinct and unique, and having a deep understanding within the DNA of culture and people that understands what esports and video game culture is, we believe, shapes us to then figure out how to build the best business. We have lots of talented people now coming together under one roof to work towards that common goal. Furthermore, we believe very strongly that we are one company, but it’s very important that we will maintain and continue to invest in and position two independent brands.”
Both the ESL and DreamHack brands stretch back 20 or more years, and Levine himself has been in the scene for nearly two decades himself as a player, team owner, and organiser. “It was always a group of individuals where we’ve known each other just pioneering the space together,” he said of the leadership for both brands.
Ultimately, the pandemic didn’t force the issue, said Levine: a potential merger had been talked about for much of the five years that the two firms have coexisted under the MTG umbrella. However, the impact of the pandemic meant that both companies had a
less-frantic stretch of time to evaluate the potential benefits and efficiencies of a merger, and the ability to finally make it happen.
“Everyone’s business slows down a little bit through this, so suddenly you’re not running DreamHacks and we’re not running from festival to festival or arena to arena. We’re able to then really sit down and spend the time together, understand how we build a joint roadmap, and understand how this really can become powerful and beneficial to everyone,” he explained. “It freed us up and slowed us down now to zoom out from our business, as most businesses
amazing people. I think we’re so uniquely positioned and I’m humbled to really lead this organisation through these globally challenging times. It’s a lot of work with the team, thinking about what the right growth engines are and priorities, and how to really build a great place to be as an employer to continue to attract and maintain the best minds in the business.”
After pivoting this year to turn the global and largely in-person ESL Pro Tour into regionalised online events, ESL Gaming is adapting the CS:GO format for 2021. The ESL Pro League is planned with a “studio bubble” format to minimise exposure risk, while planned Masterslevel live events will take on a dualweekend format, with the early stages held in-studio to reduce travel needs. That will also enable more opportunity for content creation between the weekends to foster storylines, and put more major matches on weekends for prime viewing.
are going through in the pandemic, and really assess what’s core, where can growth come from, and how can we achieve that?”
Levine joined ESL in 2014 and was just promoted from Chief Strategy Officer to co-CEO in July, joining Ralf Reichert in the role. Although the first few months in the co-CEO role have brought unique challenges, Levine is savouring the new opportunity.
“It feels like dog years, I think. I’m super excited,” he said. “As we continue to become a global company and a global organisation, this was the natural next step. I’ve really enjoyed the first few months in this role. We’ve got
Getting back to “normal” may still feel like a far-off destination, but ESL Gaming is at least planning for the gradual shift back to its core live experiences while also being prepared for continued challenges and potential further pivots.
“Normal is a moving target,” said Levine. “We anticipate bringing back live arenas with reduced capacity and tiering up our capacity throughout the year based on local safety guidelines, and following suit of what other sports and entertainment are doing in those local markets. It’s going to be a ramp-up, we believe, to get back to the old normal, but we’re optimistic that we will get there, and we’ve got plans in place to be proactively planning towards that as well as to be prepared if lockdowns and local conditions need us to adapt. We’ll be ready.”
The unique potential and challenges of crypto fan tokens
AUTHOR Andrew Hayward @ahaywaBitcoin is easily the bestknown and most valuable cryptocurrency, but there’s more to cryptocurrency than just Bitcoin - and much more to the technology behind it than just digital money.
All cryptocurrencies are based on blockchain technology: an immutable, decentralised ledger system that’s like a robust, trustless database. Copies of the blockchain for each currency or project are scattered across the computers of all participants in the network, ensuring that there is always a backup and drastically reducing the possibility of bad actors successfully changing records.
Bitcoin’s rapid rise and fall in value in late 2017 has led some to denounce the digital asset and others, labelling as a bubble that popped, but the wider cryptocurrency market keeps growing: it sits at a market cap of about $400 billion as of this writing, with other currencies such as Ethereum, Tether, and Ripple each above the $10 billion mark respectively.
Blockchain technology started with Bitcoin, but it has proven to be a valuable technology for purposes other than money. While there are a wealth of startups developing tools around blockchain, it’s also being adopted by major corporate giants and
governments to help with food safety, welfare benefits, and data analytics. It’s also fueling a new industry of digital collectibles, in which digital artwork, in-game items, and other creations are individually “tokenised” on a blockchain to prove rarity and authenticity.
Now those digital collectibles have hit the esports market. As of this writing, we have seen four major esports teams announce crypto fan tokens, which fans can purchase to gain access to exclusive features. For example, owning fan tokens may allow someone to vote on teamrelated matters - such as which in-game banner it should use in competitions - as well as have early or exclusive access to
purchasing merchandise, or potentially be able to meet or compete against their favorite players at an event.
OG, the back-to-back The International champions for Dota 2 in 2018 and 2019, was the first esports team to offer a fan token in conjunction with crypto startup Chiliz and its Socios.com platform. Chiliz has also signed up a range of traditional sporting brands such as FC Barcelona, Juventus, and the Ultimate Fighting Championship, Moreover, fellow esports organisations Team Heretics and Natus Vincere recently began offering their own respective coins via the platform as well.
“We are honored to work closely with Socios.com so that our fans have the opportunity to participate in building OG’s story,” wrote OG CEO Johan Sundstein in a release. “Socios.com gives fans a voice, so the link with OG was quite natural. Enhancing the connection with our community has always been part of OG’s DNA. With Socios.com, we will be able to take it to the next level. We want to push the experience further, by offering them the opportunity to have a real impact in some of OG’s decisions.”
Most recently, Gen.G Esports launched its own crypto fan token for its CounterStrike: Global Offensive team, called the GG Strike Coin. That particular venture was established in partnership with a startup called Rally, which has shared leadership with the org: Gen.G cofounder and Chairman Kevin Chou is also the founder and CEO of Rally. The soonto-release GG Strike Coin earns owners access to private Discord chats with Gen.G’s players and coaches, among other perks.
In addition to the myriad functional benefits of ownership, the digital tokens themselves may rise in value over time, especially with a fixed number of each minted. OG’s Fan Token was initially offered for about $1 apiece at the start, but as of this writing, CoinMarketCap reports that the market price is just over
$2 each. Look, it’s probably not going to challenge Bitcoin on that front, given its current price over $13,000, but it could still be a valuable investment.
It’s early days still for fan tokens, but the initial examples showcase the potential for esports organisations to generate additional revenue while providing more in-depth and exclusive engagement opportunities for those who buy into the system.
However, the wider market has its challenges when it comes to mainstream adoption, and perception is one of the largest. Simply put, many people still do not understand what
cryptocurrency is or why it’s valuable. Some believe that crypto technology is purely used for nefarious and illegal means when in fact there is significant legitimate usage and potential.
Esports teams considering a cryptobacked fan token must avoid fueling that negative perception by simply viewing the move as a trend-chasing revenue play. If crypto fan tokens are truly here to stay, esports organisations must provide clear and sustained benefits to buyers. The more value that teams create around the tokens, the more valuable they will become - and perhaps it’ll be more than a handful of teams offering them this time next year.
An ex-Googler brings ample business experience
Bayes Esports has continued growing in 2020, announcing a $6 million investment round in September and bringing on key hires as it expands its esports data business.
One of the most prominent additions is that of Amir Mirzaee, Bayes’ new Chief Operating Officer. Across more than 15 years in the tech business, Mirzaee has acquired significant experience in various roles, including six years spent with Google from 2011-2017 and serving as the Head of Family Office for Eisbaer Capital since.
As COO, Mirzaee will help amplify Bayes’ growth as it further expands the BEDEX independent data marketplace and seeks profitability. Following Bayes’ investment announcement, The
Esports Journal spoke with Mirzaee about his view on the potential of the esports industry and what he will bring to Bayes.
The Esports Journal: Amir, what is your first impression after 2 months as COO at Bayes Esports?
Amir Mirzaee: To put it into one word: Potential. There is solid momentum in every part of the esports industry currently, and the achievements Bayes Esports has made are amazing. I feel a certain gratitude about having come into this exciting joint venture.
ESJ: You haven’t been active in the esports scene before. What brought you there?
AM: Many topics have come together. I have been active in the tech business
for over 15 years as a founder, head of a family office, strategy consultant, and also as a Business Development and Growth Lead for Google - who by the way are a great company to work for and grow with. At the beginning of the COVID pandemic, I took a moment to reflect on what I had done so far and how I could combine my passion with work life. Tech has always excited me and I’ve played video games since age five. One of my options at the time was to join Bayes Esports. It is absolutely what I wanted.
ESJ: You have been at Google for a long time. What is missing in esports to be as successful as Google?
AM: I think it is always a question of how much focus an industry gets. Google started revolutionising the ad industry with their search engine
and performance ads, which brought the company into the focus of top talents, top investors, and experienced managers, as well as corporate interest. Three years in, they brought on Eric Schmidt, a very experienced manager that turned a product into a business.
This is a nice example of how an industry is gaining momentum and the market is growing rapidly with people coming in from outside of the industry itself. Top talent, top investors, experienced managers, and corporate interest: these aspects have come together rapidly in esports quite recently.
ESJ: What needs to change in esports for it to become more mainstream?
AM: What has to happen above all is regulation and standardisation. Esports lack a uniform structure and format. The leagues are not standardised, as is the case in soccer, for example. What is needed are game publishers like Riot and top league operators like ESL that show strong involvement and have a long-term view for the ecosystem.
Only with that kind of perspective, we’ll create a level playing field where skill wins, where exceptional players make their way to the top through consistent performance, and where esports is presented as a sport rather than just games. Changing this perception in the public eye has started, but will take a while, as we will see teams training
and being managed professionally to be successful. In Asia and the US, this is much more well known already than in Europe, for example.
ESJ: What makes you stand out as COO? What can your team expect from you?
AM: I see myself in the service of the company and the team. Removing roadblocks, streamlining processes, driving efficiency and effectiveness on a company level, and making success measurable - that is my job. I form a unified whole from many individual actions. The COO is an important complementary role to the CEO. Structure is key for sustainable growth.
ESJ: Which areas of the company will be the most connected to you?
AM: Our CEO Martin Dachselt is a very experienced manager in the tech area. He focuses on product vision, strategy, and engineering. I focus on sales, partnerships, legal matters, and finance. I’d say we’re very complementary.
ESJ: How has Bayes Esports’ 2020 developed?
AM: COVID was and is an incredibly hard time for many, we’re always mindful of that fact when talking about our success. As far as Bayes Esports is concerned, however, it was a booming year. Just one-and-a-half years after we started, we have over 150 customers, 50 employees, and sales growth in the
upper single-digit millions range.
Of course, it helped us that customers from the betting industry are looking for alternative opportunities. They inevitably had to try out new content like esports, because everything came to a standstill in traditional sports.
ESJ: With BEDEX, you have developed the world’s first independent marketplace for esports data. Where do you want to go in 2021?
AM: We are the market leader in esports data services and we’ll solidify that position in 2021 in all aspects. We are doubling down on our technological innovations such as the BEDEX data marketplace and developing additional products. Bayes Esports is already offering the highest-quality content through exclusive partnerships with Riot Games, ESL, and DreamHack and expanding both on game title and event coverage.
We just closed a round of financing and will drive for profitability. We are the only provider that can establish data partnerships of this complexity and immediately scale monetisation globally through our joint venture with Sportradar. Sportradar is the industry leader for traditional sports data with truly global infrastructure and we’re happy to be part of the family.
Securing the holy grail of sports data collection
From the first pinsetter to the latest penta, data is arguably the main driver in competition storytelling
ports data and its accompanying analytics market has boomed over the past decade. The tangential sports industry has produced multiple billiondollar companies in the wake of data and engagement.
In the current era of sport, fans expect to see live scores and statistics uploaded to mobile phones seconds
after the action takes place. The consumption of statistics has become ubiquitous. It is an aspect of daily life to provide tinder to fiery discussions over who is the greatest, and wisdom to wagers proving once and for all the one was right about the underdog.
This consumption of player and team statistics brought forth the rise of both sports betting and fantasy
sports. Business verticals arose from sports statistics and birthed the need for faster and more accurate data, revealing the data collection holy grail: an instantaneous, error-free scorekeeping system. While this is still the goal of many sports companies, esports and GRID have accomplished this feat through the digital nature of the competitions in which they specialise.
What eventually became modern stat keeping formed decades ago. The 1930s introduced Pinsetter boys who worked the bowling alleys and manually set up pins while keeping score for patrons. Earlier still, 1870 brought Henry Chadwick and the first tradition of manual baseball scorekeeping. The years following slightly modified the process, but it is still in practice today.
In 1947, the “Magic Eye” photo finish device came to the Olympics. Athletes stood around for minutes after an Olympic race waiting for the film to develop to crown a winner. While primitive by current standards, it was the first step towards including technology into the scoring of a sporting event. This inclusion of technology spurred the adoption of pressure plates and finally by laser finish lines that can be accurate to the nearest hundredth of a second.
Traditional sports, up until the past five years, have stayed true to the art of manual data collection. Often a scorekeeper in a press box or at a scorer’s table sits with a digital tablet trying to keep pace with the action at hand. In 2014, Zebra Technologies and the NFL began placing RFID chips in the shoulder pads of players to automate the player tracking process, SportVU came to the NBA, and goal-line technology has been added to FIFA. It’s a massive breakthrough for traditional sports, but still requires a manual scorekeeper to enter in the final result of the action.
The equation for successful data collection is simple and straightforward. Faster statistics lead to better products, better products lead to accurate predictions, and with it, more informed fans. Each decade comes with breakthroughs, and each giant step forward creates additional technological hurdles. That is until you consider esports.
GRID Esports is a Berlin-based esports data platform that has already mastered the art of producing true real-time data for consumption by a wide variety of customers, from mobile applications to traditional sportsbooks. “Thousands of data points flow through our system every second for a single esports match.” explained Chris King, CTO of GRID. “The group here has worked in traditional sports for many years. It was the dream to be able to pull these statistics from a sports match, but with human constraints, it just wasn’t possible.”
GRID technology sits on a server level for each of the partners they service. Data is delivered in milliseconds from the press of a button and into the GRID API. This allows GRID to service its customers with data that pairs
simultaneously with the action, even if you are sitting at the venue and watching live. When comparing a GRID API feed to an undelayed video, it flows in perfect lockstep.
GRID products built on this data look like the final culmination of what tracking devices for sports will eventually be able to produce. Artificial intelligence and machine learning are employed to apply a flashy prediction graphic. A series of players move around an environment without a hitch. The top-down view gives a visual representation of what is happening in the background: direct, ongoing communication of GRID technology and the partner’s server.
In Counter-Strike: Global Offensive, for example, you can see the loadout and current economy of each player if they pick up a different weapon, and exactly when and where the last frag came from. In Dota 2, you can see the player’s items and spells along with their current XP. All the while, a lightning-fast feed of the game events flows through written out in plain English.
Esports data was not always this clean. In the early days of esports data, information - much like in traditional sports - was collected manually off of a stream for a live broadcast. Some companies and fans use Optical Character Recognition or “OCR” to lay a capture device over a broadcast and try to pull the data. King explains this was common practice for many years, but the issue is that the data becomes unstable over time. Players can change tags, screen resolution can be altered, and labels in the game may be different. All of these factors can lead to the code written for the OCR programs to become obsolete, not to mention all of the data that is present in the game without being available on a live screen.
GRID Esports is set on defining not just the esports data landscape, but realising the long-sought-after holy grail of data collection. Much like the transition from cameras capturing a photo finish to laser marking a final time, GRID built its technology from day one to work directly with tournaments to tap directly into where the data originates.
“Every bit of data that is transferred through our system is built off agreements with relevant rights holders,” King added. “We do this to maximise the quality of our data and products, but also to put the revenue generated by tournament organisers and publishers directly back into their pockets. All the while, we can provide services to bolster their fans and provide our partners GRID integrity services to secure their events.”
Although leagues like the EPL and the NFL have a large lead in fanbases, when looking at the trajectory of sports data collection and esports data collection, the disparity becomes crystal clear. One is a mid-class sedan - sturdy, reliable, and tested; the other a fighter jet breaking the sound barrier. King explained the data gap further: “As a fan of traditional sport, I hope sometime soon it can match the process in esports, but the ability to tap into the ones and zeros of the competition is still a ways off.”
In 2018, Forbes wrote of GRID, “If esports’ moneyball moment is going to happen, GRID will make it a lot easier.” In two years, GRID has brought this vision to life with the flash of fibre optic cables and decades of experience in traditional sports data collection. From the first pinsetter to the latest penta, data is arguably the main driver in competition storytelling. 2020 has brought forward an explosion in esports popularity, and with it, data collection’s holy grail.
Investing in international growth
With offices in the USA, China, and Ukraine, WePlay Esports is a media holding company that likes to do things differently. The tournament operator has stood out over the last few years thanks to a focus on entertainment - what employees at WePlay Esports refer to as “esportainment.” Now the company is again looking to set itself apart from
its rivals by building dedicated esports arenas and investing in separate organisations.
We spoke with Oleg Krot, Managing Partner and CEO of WePlay Esports, to find out more about the strategy behind his company’s latest investments and the new arenas that they have (almost) finished constructing.
The Esports Journal: It was announced at the end of September that WePlay Esports had invested in Organization.GG. Could you please tell us more about how this investment came to be, and why WePlay Esports opted for this platform over other streamer engagement sites? Will you focus on marketing its events through streamers more and more?
Oleg Krot: You need to constantly add value to the audience if you want to succeed in esports or any other competitive industry, especially when focusing on entertainment. WePlay Esports is a team of professionals whose hearts burn for esports and what they do for it. Organization.GG fit this profile and thus became the obvious choice for investment in this area.
Our audience knows that when they follow WePlay Esports tournament broadcasts, they watch more than the matches and the analyst panel in between. They watch a whole story that gradually unravels with Source Filmmaker films, comedy skits, broadcast talent performances, and various plugs. Organization.GG will help us add interactive elements to this story and engage the audience directly.
ESJ: The investment in Organization.GG clearly isn’t a one-off move - that much was made clear in its announcement. Could you share any further information about other investments that you may soon be announcing?
Jamie Wootton @Jamie_WoottonOK: The WePlay Esports business model includes the organisation of professional, semi-professional, and amateur tournaments; production studios globally; brick and mortar esports arenas around the world; development of software solutions,
AUTHORincluding apps for mobile devices and TV sets, and other areas. Most of what we do today has been created or developed internally by our teams across various continents.
Investing in different companies and startups gives us access to personnel and solutions that are hard to acquire elsewhere. I will be able to share the plans for investments or acquisitions of new startups when it’s an appropriate time for that.
ESJ: Back at the ESI Digital Summit in May, two of WePlay Esports’ senior staff presented a session about a sizable, planned expansion. Such a move naturally requires significant capital. Has the company recently received additional investment or is WePlay Esports already well-positioned to make these ambitious plans a reality?
OK: The yearly budget of WePlay Esports has been consistently growing, and this trend will most likely continue throughout 2021 and 2022.
Since the formal inception of the company in 2012, Yura LazebnikovManaging Partner of WePlay Esports - and I have kept the majority stake in this business, and we will keep it that way. At the same time, we are planning to announce a new investor who is interested in esports as a novel form of entertainment as soon as it is possible.
ESJ: Can you provide an update on the progress of these expansion plans? Or has the Coronavirus pandemic put pay to them for now and caused a reassessment?
OK: The pandemic showed one of the big advantages of esports - it can safely take place even amid a global health crisis when it’s not safe to leave your home. The outbreak of COVID-19 did cause a change of some plans and the delay for some launches, but it made no impact on our major goals and the big picture.
Today, we have two fully-equipped esports arenas in Los Angeles and Kyiv that are almost ready to host esports events. We have soft-launched DashFight, which is a project that I believe the fighting game community will soon learn to enjoy, and we are in the final stages of preparation to launch
new tournament circuits. We have also soft-launched a mobile application, and more apps are on the way.
ESJ: There seems to be an everincreasing number of event operators who are using studio space to host their events. How will these arenas compare to the studio environments that your competitors use? Why is it important for WePlay Esports to have these arenas?
OK: We have had a great time using the studio environment ourselves recently for events in Dota 2, CS:GO, and VALORANT, however, the studios are not suitable venues for fans to meet with our team, the players, and other prominent members of the community. That’s why we need esports arenas. It’s essential to have a location where you can host esports tournaments, create content, and meet with the community at any time.
There are a number of complications that arise when renting a venue for a weekend event. Besides a limited time to set up decorations and install your equipment, there is also the hassle of taking it all down again and packing up once the event has ended. With our arenas, the production team will be free experiment with augmented reality, decorate the set, and prepare content for the next big event without worrying about hardware installation and other similar things.
From esports betting to even grander ambitions
AUTHOR Cody Luongo @Luongo_ProIn 2015, Steven Salz was one of many entrepreneurs hoping to claim a slice of the esports industry while it was still baking in the proverbial oven. Alongside Ryan White and Kevin Wimer, co-founders of Counter-Strike skins marketplace Loot Market, the trio defined the ideal set of benchmarks needed to solicit their investment. The venture was contingent on three important criteria: an asset completely agnostic of a game publisher’s intellectual property, thirdparty API, and specific game titles.
This set of guidelines pointed Salz to the world of esports bookmaking. However, the esports betting landscape looked far different back then than it does today. The sector was riddled with unregulated sportsbooks and illegal skin markets, each posing its own regulatory nightmare. Salz never found his ideal esports investment opportunity, so he decided to create his own.
This became the genesis of Rivalry, an online, esports-focused betting platform launched in February 2018, where Salz serves as the Chief Executive Officer. The sportsbook has soared in popularity since, inking official partnerships with the likes of FNATIC, FURIA, and veteran esports content creator Richard Lewis. Having your brand stand out in this deeply competitive space is no mean feat, but it’s something Rivalry has executed extraordinarily well.
When first arriving on Rivalry’s webpage, you are greeted by a colourful and bold art style which wraps the entire site. Meanwhile, a customer support message is prompted using popular video game characters. It’s cheerful, light-hearted, and fun, but the larger strategy behind everything from the platform’s quirky design to its overall vision of esports betting is nothing to sneer at.
“We want to make Rivalry the defining voice and betting home of esports fans,” Salz told The Esports Journal. “The only way to do that is to have a large community voice. You can’t just have a great product, even though we’re trying to do both.”
Digital media is a key part of any consumer-facing business in this day and age. It’s an area that Rivalry has dedicated ample resources towards, and one clearly evident by the breadth of its content and popularity of its brand. Punchy social media account operators, highbrow editorial pieces, and exclusive content segments with partnered organisations and creators all play a part in this elevated mindshare. While successfully driving brand equity and global appeal, Rivalry’s strong community focus is part of a genuine interest in making betting more social, casual, and entertaining.
“We think this demographic and user is way more casual. They want to
look at [gambling] socially and as entertainment. We don’t want to create some stigma around it where they think about it as something dirty,” Salz said. “We add to the entertainment experience of an esports fan. We make money and recycle it back into the community – it then becomes this virtuous cycle and we think that’s good for business and also good for the community.”
If there was any doubt of the bookmaker’s authenticity in looking out for its consumers, one skim of the ‘Rivalry Academy’ would dismiss any uncertainty. The academic portal, available in multiple languages, is equipped with videos and articles designed to educate all walks of bettors, from beginners to experienced gamblers.
“We’re trying to provide as much information so that they’re an informed consumer, the same way you would in any industry,” Salz explained. “We’re building the education to keep the experience consistent, prevent [users] from starting negative behavioural trends, and just aligning it with other consumer experiences they’re used to having.”
Within this ecosystem is a consumer much different than the traditional gambler found betting on football or basketball. This is a younger member of the internet generation with much higher expectations on user experience. It’s a factor Rivalry is astutely aware of, and one that has directionally shaped everything about its core experience.
Salz commented: “We massively overhauled the traditional approach on everything from onboarding, know your customer, customer support, the betting slip, and even nuance items like wallet visualisations to successfully deliver a product that works for this audience.”
These features may seem like comparatively minor additions to the
core wagering product, however, it’s all part of building an exceptional user experience at large. The sportsbook even goes as far as to source its customer support representatives directly from the community, avoiding toilsome, third-party systems; whereas retail operators may encounter organisational bloat allocating the same customer care resources. It’s another area Rivalry has committed to improving, and one that makes its overall competitive advantage just that much steeper.
The DNA of Rivalry’s workforce consists of a less regulated betting experience than you’d expect from a global gambling brand – a quality which has played surprisingly in its favour. Instead, the betting operator tapped technology entrepreneurs from Tornoto’s bustling software developer market; a fruitful move resulting in the entirety of its assets built in-house, allowing its products to have an extra personalised touch.
There are countless benefits in identifying as a tech company, one of which includes the creation of a forthcoming, proprietary casino game the operator is building called ‘Rushlane’.
Launching in late 2020, Rushlane, which Salz defined as a mixture of ‘Mario Kart and Tower Defense’, is Rivalry’s take on microgaming. The casino game
will integrate user-profiles and other platform-specific components for an immersive experience that builds upon the site’s lore. Despite being a tall, rigorous order, the custom casino game allows Rivalry to deepen its offering while staying consistent with its brand reputation.
“We didn’t want to just hit them with slots from day one,” Salz said. “It would betray the brand proposition that we have at Rivalry and it’s not consistent with what we’re trying to achieve.”
While the operator has built a fundamentally successful product, months shy of its three-year anniversary, there’s still a lot more ground to be covered. New markets, regional leads, localised deals, internally developed products, and an expanded esports betting product are all on the company’s horizon.
Salz emphasised: “A really big focus for us over the next 12 months is elevating the brand and being able to get the scale and leverage of a typical sports and media entertainment brand without people constantly linking it to gambling, and therefore having more of an aversion to what we’re producing.
“The scope and scale of the brand itself,” he added, “completely independent of the fundamentals of the business, will be in a very different stratosphere from where it is today.”
The 185-year-old seating solutions firm is expanding its esports ambitions
AUTHOR Andrew Hayward @ahaywaot many companies in the esports space can claim to have been in business for decades, let alone more than a century, but Hussey Seating Company can. Founded in 1835, the family-owned firm began by creating the cast-plows for New England’s rocky soil and over the years pivoted to seating solutions for stadiums, theatres, arenas, and more.
With headquarters in Maine and regional offices in the UK and Asia, Hussey has amassed a significant number of internationally-known projects under its belt, including creating seating solutions for major venues such as Chicago’s
United Center, MGM Park Theater in Las Vegas and the Hong Kong Convention Center in Hong Kong.
As dedicated esports venues spring to life, whether it’s new construction or remodeling existing buildings, Hussey Seating has already provided seating solutions for major developments including Esports Stadium Arlington, the Alienware Arena at Fortress Melbourne, and The Fortress at Full Sail University. Esports has been in Hussey’s sights for several years now, and the company is well-positioned to capitalise on the growing wave of dedicated esports venues.
Recently, Hussey announced a partnership with the National Association of Collegiate Esports (NACE) making them the Official Seating Solutions Supplier of NACE. More than 170 colleges and universities across the United States are part of the NACE, including over 94% of all varsity collegiate programs, with more than 5,000 students participating in its programs.
“We’re really excited to establish ourselves with a national partner like
Sean O’Leary VP of Sales and Marketing Hussey SeatingNACE and be able to not only gain access to their members, but learn more about what’s important to them and what’s driving them so that we can develop tools and products that will really fit their audience,” Sean O’Leary Hussey Seating Company’s VP of Sales and Marketing, explained to The Esports Journal.
“It’s a give and take relationship for both of us,” he continued. “We’re going to be able to get on a deeper level with their members and really help design their facilities hand-in-hand with them. Plus, we want to increase our exposure in the esports industry, and I think the more people are exposed to the work that we do and the solutions we provide, along with the visualisation tools, the more work we’re going to see.”
Hussey Seating provides a full range of seating solutions, ranging from Clarin portable chairs to retractable/ telescopic bleachers, premium fixed seating, and more. The company prides itself on working closely with clients to devise seating solutions that will maximise the space they have available. With esports clients in particular, O’Leary said the company has found that such venues usually benefit from the flexibility to tweak and reconfigure the space to meet the varying needs of different events and competitions.
“You need a partner that’s going to
approach a project with you and see your long-term vision,” he said. “How are you going to use the facility for esports? Are you going to use it for other revenue-generating events? What type of audience do you have? We’re able to provide that one-stop shop for every seat in the house.”
The NACE partnership is a significant addition for Hussey Seating Company, given the rise in collegiate esports programs and the likely influx in venue construction in the years ahead. Even with that alliance on its plate, the company will widen its remit in its search for additional esports organisations that can benefit from its myriad of seating solutions.
One of Hussey’s standout benefits is the ability to provide detailed visualisation to clients, so they can see the venue brought to life digitally before construction begins. Thanks to detailed Autodesk Revit models, Hussey’s designers can provide a hyper-realistic 3D layout of a space with varying seating
“We invented the closed-deck bleacher and have been in telescopic seating since the 1950’s. Seating and innovation are really in our bloodline”
options, and clients can even create a Stereo Panoramic rendering from any seat in the room, in order to look around and check sightlines from that seat.
It is that marriage of modern seating and visualisation technology with long-established roots and a trusted history that O’Leary said sets Hussey apart from newer players in the esports seating space. The quality of its seating products speaks for itself, and the company’s nearly two-century lifespan suggests a resilient, capable business.
“As a consumer of any product, I think that if you’re investing a pretty large sum of money, you want to make sure you have a partner that’s in it for the long run,” O’Leary said. “Someone that’s going to back up what they’re saying with quality warranties and local service.”
“We invented the closed-deck bleacher and have been in seating since the 1950’s. Seating and innovation are really in our bloodline,” he continued. “We’re manufacturing products that are built to last. I would just advise consumers: Do you really want to trust somebody that has not been in business for as long
as their seats are supposedly going to last? We’ve stood behind our products –whether we were making plows in 1835 or state of the art telescopic platforms in 2020.”
“We treat our customers as partners and it’s evident through the projects we’ve completed that when we’re a part of the conversation upstream, we can work together to develop the type of solutions
that are most impactful for our customers’ audiences. We have a full suite of seating solutions which our potential customers can outfit their space with portable floor seating, telescopic bleachers, telescopic platform seating, fixed seating solutions, and many other options. We have every seat in the house which makes Hussey Seating Company an easy, reliable choice for spectator seating.”
Accelerating esports in the country
AUTHOR Tom Daniels @TheTomDanielsver the past few years, esports has steadily risen in prominence. At first, this was from a spectator and participation standpoint; however, as the industry has continued to develop and professionalise, other aspects of the sector have become of greater importance too.
Qatar SportsTech (QST) was designed to accelerate the sports industry in Qatar and the Middle East region by providing startups with access to investment, expertise and connections, as well as developing the startups in its programs by way of mentorship. Some of its partners include beIN Media Group, Aspire Zone Foundation and the Supreme Committee for Delivery & Legacy, along with other key stakeholders in and around Qatar’s sports ecosystem.
Somewhat unsurprisingly given the industry’s growth, the firm has also turned its eye to esports in a bid to propel the sector further forward, and better position Qatar within it too, as has been the case with QST’s investments in traditional sports.
The company’s Accelerator program, which takes place over a three-month period on a bi-annual basis in Qatar’s capital Doha, sees 10 startups selected to take part. These startups are chosen by matching certain criteria across four key sectors: Athlete & Team, Fan & Viewer, Mega Sports Events, and of course, Esports. Applications for Cohort 4 are already open, and will run until the end of January 2021, with the program taking place from March to May 2021.
Amongst the program’s alumni are broadcast solutions provider Sponix Tech, smart clothing firm Torq Labs,
and administrative, financial and sports planning platform Golee. Another 17 distinctive startups have also taken part.
The inclusion of esports in QST’s program highlights Qatar’s vision to develop its competitive gaming scene alongside its recent push for traditional sporting excellence, which is highlighted by the country hosting major international sports events such as the FIFA World Cup 2022.
Qatar has also seen initiatives such as the Qatar Esports Wega Global Games, launched this past January. The three-year global esports competition, centered around Qatar, aims to develop the country’s competitive environment whilst also providing greater opportunities for participants in the scene. The first edition of the Global Games sees tournaments take place for
Counter-Strike: Global Offensive, Dota 2, Street Fighter V, and Pro Evolution Soccer. Moreover, participants are competing to take home part of its $15 million prize pool. This is just one of the initiatives that Qatar has created to show its intention to further develop esports in the MENA region.
When looking at the esports space, QST is specifically focusing on finding startups which “will transform and enhance how gamers participate in and experience esports.” This can include having a solution which enhances performance analytics, event streaming and management, interaction and content management, intelligent virtual assistance, and the creation of gaming platforms.
If a candidate company excels in the criteria and is selected to be inducted into the program, then the organisation will be invited to participate in a three-month intensive accelerator at Aspire Zone, which is described by QST as the “beating heart of sports in Qatar.” Throughout this process, each startup receives a total of $150,000
in investment. Of that, $40,000 is provided in cash, with the rest at a discounted in-kind value.
As well as offering funding, the Accelerator Program also provides a range of other benefits which can be used to mould an esports startup. This includes access to specifically tailored global mentors, a range of investors through “Demo Days” and also free
office space provided for six months in Doha. Start-ups may also have the chance to gain further funding from QDB’s $150+ million capital due to its relationship as QST’s founding partner.
One of QST’s alumni is Fridai, the developer of a voice-powered intelligent virtual gaming assistant. The firm uses artificial intelligence in order to enhance a player’s experience by
providing voice-automated tips on a variety of supported titles. Following the Accelerator Program, earlier this year the firm announced that it is working with Microsoft to introduce an Arabic-language voice assistant to gamers. Additionally, Fridai has recently launched the beta version of its app in Windows.
This year, Jordan-based organisation FATE Esports was selected amongst QST’s third cohort, again showcasing the firm’s willingness to invest in different esports ventures with the ultimate goal to boost Qatar’s competitive gaming sector. FATE scouts and nurtures top esports players and connects them with key stakeholders in the global competitive gaming industry to ensure that the esports ecosystem continues running smoothly.
Aside from being a part of QST’s program, FATE is closely connected with telecom giant Orange in order to run esports tournaments, particularly in the Middle East region. The two
organisations were a part of ESI Digital Summer in August, and presented a brand showcase at the digital conference. On the competitive side, the esports organisation also boasts an impressive CS:GO roster and recently made it to the Intel Extreme Masters Beijing-Haidian 2020 European Closed Qualifier.
Since its launch, QST has scouted 4,264 startups, received nearly 1,300 applications from over 80 countries, and invested $1.25 million across 30 sports tech startups between three cohorts within only 18 months.
QST does not only focus on building and developing esports startups. However, the fact that the firm has integrated competitive gaming into the country’s growth emphasises how crucial implementing a strong esports ecosystem alongside traditional sports is to modern-day developing regions.
As Qatar looks to establish itself as a global hub in the world of sports and
esports, organisations such as QST will ensure that startups are provided with the proper tools and expertise to be able to integrate smoothly into the ecosystem. The success of the Accelerator Program has also seen QST think more locally to nurture and develop Qatari startups.
EntelaQ is designed to do just that with the “Pre-Accelerator Program,” aiming to help young entrepreneurs and university students residing in Qatar to launch their own businesses.
What QST is doing is providing a startup environment which will ultimately benefit the country. Its Accelerator program is not only developing global esports startups, but also integrating the organisations into Qatar’s esports structure. Moreover, by curating local companies and boosting esports entrepreneurs, QST hopes to push the boundaries of esports in the region by helping to develop a living, breathing and thriving scene.
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Upping the ante for potent esports content and production
AUTHOR Andrew Hayward @AhaywaAnyone who follows esports has surely seen DLC Studios’ creative work. It would be hard to miss, given a laundry list of clients that includes the likes of Ubisoft, ESL, Red Bull, MSI, and more, not to mention an array of services including graphic design and brand consultation, photography, video creation, and event production.
DLC Studios was initially formed as an offshoot of UK esports organisation MnM Gaming. Brothers Kalvin and Daniel Chung realised that creating content was one of their biggest strengths within the team, and decided to cofound DLC Studios with Sammy Lam and Rhys Rasmussen to help spread those talents far and wide across the industry.
Since then, the agency has amassed an extensive portfolio of projects, including branding for Red Bull events such
branding for UK based university esports organiser The NUEL, event content work for ESL and MSI, the rebrand of the WFH League, and a fair bit more.
According to Kalvin, DLC Studios’ work showcases their care and understanding of esports, and represents the diverse interests and backgrounds of the entire team. “We care a lot and we show that we care in our work, and we’re always selfcritical,” he told The Esports Journal “We have a diverse group of people from Asia, all across Europe, and South Africa, and everyone has different influences and perspectives.”
When it comes to event production, Daniel suggests that the team’s true value comes from ensuring that clients can achieve their objectives even amidst any obstacles at hand.
“Our expertise comes into the more technical stuff,” he explained. “A lot of what we do during those moments is problem-solving. When given limitations on resources in terms of time or space, it can require a lot of creative technical thinking from our side to deliver what they want within the constraints we are given.”
Like the rest of the esports industry, DLC Studios was thrown a curveball with the COVID-19 pandemic, which largely eliminated live events and in-person activations. While that had been a big part of the team’s workload prior to lockdown restrictions, DLC Studios shifted gears to double down on content creation and branding, and has actually grown its team during this time despite the resulting economic challenges.
“There are no events and we’ve gone from traveling and doing a lot of event coverage to refocusing on creating graphical work, whether it’s logos or illustrations for our clients,” said Daniel. “There’s been a lot of adapting to situations, but it’s highlighted our strengths and made us very adaptable to the situation. There are some effects from the pandemic, but it’s given us time to refocus our work into different areas that we might not have had as much time to focus on before.”
One such project is the recent secondseason redesign of WFH League, a corporate esports competition initiative from Esports Insider and London-based esports and gaming bar Platform. DLC Studios worked to develop stronger visual branding and messaging for the initiative, delivering a look that is
playful but still professional, inviting and welcoming to all. Kalvin said that he recognised the potential for the league to help companies understand esports.
“I wanted to sit somewhere in between corporate and quite playful. I didn’t want it to be too playful, as its target audience are people in business who want to play games. I didn’t want to lose either market, so the task was: How do we merge the corporate world and game world into one?” he said. “When we built that world, the graphical language represented a lot of things like diversity and different games and age groups, so we combined lots of areas of gaming digitally into one. That’s how we started to merge the worlds together.”
“Esports is very on-topic right now and can be difficult for people to understand who aren’t in the space. Maybe WFH League is the bridge for corporate groups to understand the space by them competing in the tournament,” he continued. “It’s a good way to understand the esports space, because a lot of companies are trying to get into it.”
Even more so than traditional sports leagues, esports provides such a persistent opportunity for content creation, which is where an agency like DLC Studios can be such a crucial partner to firms. Sammy says that the standard for quality content and branding continues to be raised in the industry, and likewise, DLC Studios continues to up its game to deliver for clients.
“Over time, esports design has improved a lot. We’re seeing many designers being more experimental,” he said. “With the bigger organisations, you can really start to see their brand show through their design. There was a time where newly created organisations would have very similar logos and visuals. Now, there’s a lot of individuality and a lot of different styles, and there’s such a constant stream of content to take inspiration from.”
Elevating the esports broadcast production game
AUTHOR Ross Video @Ross_video“Gold has the look.” “OK, bring it in, 3-2-1, cut Gold.” Veteran sports producers and production teams have heard backand-forths like this in control rooms and trucks throughout their careers. Certain actions almost become second nature, and crews that have worked together on the NFL, EPL, NBA, and similar sports will be able to produce amazing shows full of compelling stories, all through the smart use of replay, graphics and camera work.
They have it easy. In esports, the challenges extend well beyond using 20-something cameras to
pick up the action and tell stories. Sure, we can get action and reaction from teams as they win or lose on the stage, but the real action is happening ingame. Sometimes it’s hard for seasoned gamers to catch the key moments, and we rely on great work from casters on comms to give us the details of the strategies and plays that make the difference.
Telling these stories is a huge challenge. Added to that, the majority of esports production teams are made up of a combination of a few old TV guys and then a host of gamers. When someone
yells, “Give me Coldzera’s molly defense at Banana, cross rolled into Fer’s 4k at B” across the gallery at a crucial moment, even a replay team with 20 years of experience running top-end football or hockey won’t have a clue what shots to hit.
This is why an esports production gallery really needs to have the gamers deeply involved in the production itself. The tricky issue then becomes how to get gamers to understand the production side so that these two cultures can meet in the middle. The big question the esports community
has been struggling with over the last few years is, “How can we produce a compelling show that works for fans and for casual viewers alike?” Fortunately, answers are now emerging.
Technology companies (like Ross Video) have all the kit necessary to enable esports content producers to create great shows, if you have the budget and the right skillset. However, we want to do more – providing tools that empower gamers to do things that would impress even the most experienced of high-end TV production crews, without needing the years of experience and sweat equity that goes with it.
That’s what we’ve done with DashBoard.
For a piece of software that comes at zero cost, it’s a game changer for so many productions. DashBoard is essentially a complete SDK with a GUI
builder that allows anyone to create customised interfaces for controlling a host of kit from Ross Video (and other manufacturers) from a single location in a super simplified and personalised way.
Our customers have taken this software and gone to town with it. One great example directly related to esports is the HyperX Esports Arena in Las Vegas.
This is a dashboard panel that Riley, then graphics operator at HyperX, used to manage incredibly complex big screen shows in the venue, while simultaneously firing inserts for the broadcast stream. You can see at a glance how easy it is to use.
Riley’s story is a great one. He had very little work experience, let alone live production experience, when he was hired at HyperX. Within no time, thanks to DashBoard and the Ross workflow,
he was operating graphics for huge productions, even some that aired on cable networks in the US.
The potential for this is limited only by your team’s imagination. As an example, we have several major sports venues and TV productions around the world that manage their shows with a team of one! That’s one person, sitting in front of a DashBoard panel operating the in-venue show and contributing to what’s going on the produced feed.
What we really want to see at Ross is smart and creative people using this technology to produce compelling shows (both in venues and on streams) and elevate the production value of esports content, bring it up to and beyond what we see in traditional sports.
Effective communication comes from within
AUTHOR Pablo Monti @PabloMMontiIn recent years, esports organisations became much more than just sports teams eager to win the competitions in which they participate. Content creation, maintaining a relationship with endemic and non-endemic brands, and even producing merchandise are some of the activities that these organisations face every day as they grow.
The global COVID-19 pandemic has increased the awareness and reach of esports across the world. Not only have audiences grown, but also many brands decided to jump into this industry and
partner with teams and competitions. It’s extremely important to ensure that brands can relate to the esports audience in an authentic manner.
Isurus has been part of the Latin American esports landscape for more than 10 years, and they know very well how to relate to new brands. That is why they decided to get even more involved and be part of better communication.
The Latin American organisation recently decided to create its own communications agency to assist brands in the process of investing and
liaising in esports. How do they get this done? Isurus Studio is the name, and they gather professional experience, industry knowledge, and the best human resources available.
Juan Cyterspiller, CEO of Isurus Studio, told The Esports Journal, “Just like everyone sees Isurus as a place to find gaming fans, they can also find a strategic partner that has been on the top for 10 years. Through Isurus Studio, we use video games as the new virtual spotlight for better branding.”
Isurus is one of the most popular
esports organisations in Latin America. Collectively, the team garners more than 4 million monthly impressions on Instagram and 5 million on Twitter. Regarding PR numbers, over the last six months, they had a 216 billion global audience, according to Agility PR, which measures their reach for both print and online media. Some of the key geographies Isurus targets include Argentina, Mexico, and Brazil, with the United States representing its fourth biggest audience.
Without any doubt, Isurus is living its dream, and that is thanks to the professional talent that the organisation employs. The staff not only has professional experience in the esports industry, but also understands how it works. For brands, partnering with the most popular influencers is not always the right move. Sometimes, the key decision is to partner with someone that will deliver the message in the way that the brand needs.
“When a brand wants to join the esports world, it’s hugely important to know about it,” said Isurus Gaming Principal CEO Facundo Calabró. “At Isurus Studio, we have an extremely qualified team that has a deep understanding of the communications and esports worlds. They can determine the best way for a brand to jump in.”
This Latin American esports club believes that it is time to professionalise the gaming industry in the region, and creating this communication agency is a key factor to achieve that. Esports, just like communication, has no borders. With all this in mind, Isurus decided to bring the best professionals of both esports and communication industries to keep growing the gaming world and to show how important that is.
“Driven by entertainment, we are the ideal communication channel between avantgarde brands that want to relate with a
young audience,” said Antonella Meriggi, Marcom Manager at Isurus Studio. “We offer leadership and professionalism within a highly-changing environment, besides unique know-how from years of doing this.”
The impressive growth of esports has pushed organisations to professionalise and diversify their businesses. Besides the core goal of putting together
winning teams, organisations now are also multi-pronged companies with several businesses. In today’s climate, esports organisations don’t just compete in competitions but they provide content generation, relationship with brands, merchandising selling, and much more under one umbrella. The very best companies find the right balance between them all.
An Argentine team CEO’s vision
Since popular Argentine streamer Francisco
“Frankkaster” Postiglione announced the launch of his esports organisation, 9z Team hasn’t stopped growing in terms of competitive rosters and audience. Postiglione is the man behind the club and he has a huge personal fanbase that also follows the team.
The Esports Journal chatted with Frankkaster about his organisation, the work they have done during the past years, and about the near future.
The Esports Journal: 9z Team recently turned 2 years old. How did you manage to lead the team’s growth? Francisco Postiglione: When we started with 9z, I didn’t see it as the important organisation we are today. It was like having a hobby and helping friends, giving them space to work and become pro players. It started as some kind of game between friends and turned into a serious Fortnite team. Then, we added Counter-Strike: Global Offensive and then came League of Legends. I didn’t expect that much growth.
As I got involved, I became aware of the potential of the esports industry, and I understood that it was time to leap. Two years ago, I decided to professionalise the company by adding legal and accounting advisors.
Other professionals joined, bringing their experience and helping with the development. We were two people when we started, then there were 10, and now we are many more. Right now, 9z has more than 70 streamers and players from Argentina, Brazil, Chile, Peru, and Uruguay.
ESJ: What are the different areas that 9z has involved in its growth?
FP: 9z has two main businesses: content creation and sports. Right now, we have 11 teams competing, both male and female. From within the organisation, we constantly look into new talents and adding other titles for our fanbase.
On the other hand, our streamers are among the most-watched in South America. They are growing and their audiences are growing, and we create content to achieve that and to generate new commercial opportunities. Our organisation seeks the professionalisation of the esports and gaming scene in Latin America, the growth of the ecosystem through engaging actions, and making this business profitable for brands.
Francisco “Frankkaster” Postiglione Founder and CEO 9Z TeamESJ: What other aspects make 9z one of the most relevant esports organisations in the region?
FP: We think of ourselves as a 360-degree organisation in Latin America. This has been important for our partners, who realize the importance of quality content for the fans and consumers. We want to achieve our goals and keep growing into one of the most important organisations in the region. That’s why we developed a Marketing and Public Relationships plan for 2020-2022 with four big principles:
• Brand development
• Quality content creation
• Online and offline event organisation
• Brand internationalisation
ESJ: How important are your partners in this development?
FP: The support we have from our sponsors is fundamental to work seriously and keep growing. Luckily, we see more brands investing in esports clubs and competitions, but the main thing is when non-endemic brands
jump in. During 2020, 9z has partnered with three big brands: leading telecom Claro Argentina, gaming peripherals brand Logitech, and gaming computer manufacturer Aorus. Red Bull is our partner from the start. Thanks to them, our organisation continues to grow and we can keep giving the best content to our community.
ESJ: What are your thoughts about the esports industry in Latin America?
FP: Latin America is a constantlyevolving region in esports and Argentina is one of the countries with the most potential - probably the same as any big country in the world. A CS:GO match between 9z and another very popular team, Coscu Army, had 100,000 concurrent viewers. That happens just a few times a year at top global events.
We are doing things right, but there’s more to be done. We work to demonstrate that we do our job properly. Brazil did it right, and it took them five or six years to reach the top. Argentina is now in the spotlight
because of the talent and the work we are doing, but we need to keep doing it the right way.
ESJ: What’s the biggest strength of 9z?
FP: We are truly humble and we know our audience. That’s what makes 9z so popular. Many said we were just kids, and in a way, we are. We are being responsible and we are professionals that came from being other streamers’ viewers five years ago. That’s why we understand exactly where to go with this, and that’s our biggest strength.
ESJ: What’s the biggest objective for 9z for 2021?
FP: For 2021, we aim to keep growing in the international market to reach a place no other Argentine organisation did. I want us to make it to the group stage in League of Legends’ World Championship. I want us to advance deep into the CS:GO Pro League. I want us to play a Rainbow Six international tournament. I know we will accomplish that because we are working hard and putting in a lot of effort, heart, and compromise.
Adaptation, development, success: Analysing Prize Payments’ first 12 months
The global health pandemic created a seismic shift in the modern-day business landscape, with many industries having to adapt and change long-term plans.
However, during these hardships, the esports sector became a major focal point due to its ability to continue amongst the coronavirus outbreak.
After launching in August 2019, esports payment solutions provider Prize
Payments has spent much of its tenure amidst the COVID-19 pandemic. Nevertheless, this hasn’t halted the firm’s growth. The company continues to offer its payments platform to tournament organisers and publishers in order to reduce transaction time for prize money, and ensure that compliance is maintained.
Speaking to The Esports Journal, Han Park, co-founder and CEO of Prize Payments, opened up about how the
company has managed to continue developing despite the pandemic.
“We had really aggressive plans for what we wanted to do this year starting in March, and that’s when obviously things started spiking up,” commented Park. “We still went with our plans aggressively in March and April with the uncertainty of what this whole COVID lockdown was gonna equate to, and we actually had to pivot our strategy to adapt to what was happening.
“Our original plan was to go after the major tournament organisers that were doing a lot of live events. You can count all your triple-A publishers and the large event organisers probably on both hands. Those were our targets,” he continued. “However, as soon as the event cancellations started happening, you just saw announcements of events cancelling one after each other.”
Han Park Co-Founder and CEO Prize Payments
Park went on to detail that while the global health pandemic halted the company’s immediate plans, as soon as the industry transitioned to hosting more online tournaments, he discovered an opportunity to adapt the business.
“We had to pivot and say that our strategy for this year is to downscale the prize money volume, that we were going to expect to move from large events, and focus on going after the smaller tournaments that are online,” he added. “We also started to look at different tournament organisers that were off our radar initially.”
Prize Payments was created to provide tournament organisers with the opportunity to safely transact prize money to its competitors, ensuring that global payment regulations are followed and that the process is smoother for both the payer and payee.
The idea of the firm was dreamed up during Park’s time leading ESL North America from 2014-2018, when he discovered that an esports-specific payments solution has yet to be fully developed. As a result, he opted to create Prize Payments to fill this void in the industry.
Explaining his decision to launch Prize Payments, Park stated: “We dealt with a lot of prize money [at ESL]. Everything from weekly online cups for $50 USD all the way to the million-dollar payouts for Halo. What we found is that, because of the payment complexities and the rules and regulations around compliance changing, it’s really hard to pay people cash. There’s no solution out there that focuses on the logistics and the compliance side.
“You can use PayPal to transfer money, but because the prize money is
considered taxable income in a lot of countries, it has to be reported and the information that you collect of the payees has to be privacy compliant. Those are the challenges that I ran into at ESL and I said: If we’re encountering this and we’re doing all of these white label productions for all these game publishers... when they take their programmes in-house, there’s no way their corporate accounting teams are going to be able to do this compliantly unless they staff up.
“Every company is going to need at least a chance to look at a third-party solution that’s holistic, turnkey, and mitigates corporate risk,” he added. “That’s why I launched the business. It was something that was needed.”
Following its inception, Prize Payments has already secured partnerships with the likes of Ubisoft, Sega, LiquidDogs, and PG Esports. These agreements have undoubtedly highlighted that there was a need to develop the esports industry’s payments sector.
In January, Ubisoft’s Rainbow Six Siege Nordics Championship delivered player winnings to Denmark, Finland, Sweden, the Netherlands, Germany,
and the United Kingdom, with 95% of the competitors opting for direct bank transfers via Prize Payment’s platform. The players received their prize money within 15 hours of the transfer.
Due to its early success, the payment solutions provider partnered with DreamHack this September in order to integrate its platform into the organiser’s online competitions. According to Park, the agreement showcased how Prize Payments’ willingness to adapt to the current climate has proved to be a success.
“Initially, the approach was that we wanted DreamHack for their large prize pools from their big events,” he said. “DreamHack is known for these tentpole events around the world. They’re handing out large sums of prize money on behalf of the publishers for the games that are at their festivals. So we know that there’s a lot of payees that are receiving
a lot of payments. But once they started cancelling their events, our conversations with DreamHack also changed.”
“They were like, ‘We’re going to go back to our roots of online gaming, and look at doing these community events.’ We said that we are a perfect case study, then,” Park added. “With our strategy pivot and their business having to adapt to the environment, we can power their online platform payments as well.
“That’s how the test started really coming about. It gave them a chance to not commit their large event prize pools to a new platform, but instead do it almost like a case study with these community cups. They are $5,000, but they’re being paid out to hundreds of players. It’s global in nature and they’re like, ‘Let’s test this.’”
With the first 12 months completed, attention now turns to the future of Prize Payments and how the company plans to continue its development. Whilst esports is still at the forefront for the firm, Park sees the opportunity to branch into other sectors which also lack in the payment compliance industry.
“If you really look at esports, it’s still a limited universe. You know who all the triple-A publishers are, you know who all the big tournament organisers are, and then there’s the rest of the pool,” he said. “We look at providing a solution within esports as kind of a step of what this platform really is. It’s all about compliance and ease of use to handle the transfer of global payments.”
“What we’re seeing is that once we made our announcements, we started getting a lot of inbound requests from different industries that are having the same challenges,” he concluded. “We’re looking at optimising our platform and introducing it to other verticals that have similar challenges.”
ESI Connect sits in-between the current esports rights holders (from teams, to tournament organisers) and those on the outside looking in from brands, to suppliers and investors.
Acting as a bridge between these; ESI Connect will evaluate what you seek to do, propose the best fit, initiate the right contacts and support you in the delivery of your plans.
For more information reach out to info@esportsinsider.com
Bringing esports to schools and making a difference with Game Changers
AUTHOR Andrew Hayward @ahaywaHigh school and collegiate esports programs have grown significantly in number and scale in recent years, and PlayVS is one of the key companies helping to drive scholastic adoption. Founded in 2017, the North American firm provides a turnkey platform for schools to establish their own esports programs and host competitions across games such as League of Legends, Rocket League, and Overwatch.
Schools are buying into the program in droves, with more than 21,000 signed up to date across the high school and university levels, encompassing 143,000+ students. With more than $900,000 in scholarship funds for the current academic year, PlayVS also provides a way for students to fuel their own education by playing the games they love.
“The mission is really to power the standard for amateur esports,” Aakash Ranavat, Vice President of Central Operations at PlayVS, explained to The Esports Journal. He added that scholarship funds are “our way and our publishers’ way of investing back in the ecosystem.”
Ranavat points to several potential benefits for schools establishing their own esports programs. Organised school activities can lead to better social and behavioral skills for students, alongside a helpful lesson in sportsmanship. As more and more schools invest in esports programs, they are also fueling a drive to make competitive gaming every bit as much of
a legitimate, recognised school sport as any traditional, physical activity.
“Through our partnership with the National Federation of State High School Associations, it’s really about making esports a varsity sport,” said Ranavat. “Just in the way that you would participate in basketball or football for your school, you would participate in esports, which means you’d compete for a state title and you’re recognised as the best in that state.”
While schools can opt to create their own bespoke esports programs, there are multiple advantages to using the PlayVS platform. It’s easy for schools to get up and running and plug into the setup, which lets them get started with competition against other schools, to handle scheduling and tech support, and to tap into the connections that PlayVS has with state athletic associations and game publishers alike.
“What we want to do is handle all of the logistical legwork for schools so that they can focus on what matters most, which is the players and the experience,” said Ranavat. “That’s scheduling, logistics, and match day support, plus our publisher partners really entrust us to integrate their titles with our product, which I think really enhances the player experience.”
“We’re able to operate at scale,” he continued. “We have a scalable platform that allows us to bring on high schools or colleges and universities across the nation and seamlessly integrate them and offer the best experience possible.”
PlayVS certainly has investors interested in its vision. In September 2019, the company announced a $50 million Series C round that brought its investment total to more than $95 million to date. According to Ranavat, PlayVS has used that funding to
significantly expand its team, nearly doubling head count, and to fuel more accessibility and inclusion programs to help spread the word of scholastic esports far and wide.
One of those programs is Game Changers, an initiative designed to help bring more young women into esports competition through reduced entry fees and mentorship from industry professionals. With ambassadors such as 100 Thieves League of Legends Academy head coach Kelsey Moser and G2 Esports Head of Content Karina Ziminaite involved, PlayVS is also helping young women learn about potential career paths in the space.
“The mission is to inspire more young women to explore gaming, tech, and esports as a career opportunity, creating a safe space for more girls to get into gaming on their campuses, and then also providing a platform for amazing women in the gaming industry to share their experiences and advice to the next generation of female gamers,” said Ranavat.
PlayVS recently expanded from the United States into Canada, but while there’s still significant room to grow within those countries alone, Ranavat believes that there’s even more opportunity around the globe.
“I think there’s tremendous opportunity in the US - not just in the number of schools, but also program size growth within those schools. Canada is a huge opportunity for us, and then it’s really just international territories beyond North America,” he said. “If you look at the adoption or engagement with esports, it
is even more prevalent than it would be here in the US and Canada. Of course, the scholastic structure is different there, but from a potential from an engagement and scale perspective, if you look at Asia and even areas like Europe, there’s tremendous potential as well.”
“The future is really bright,” Ranavat added. “If you just think about where we’re focused and a lot about what our mission is, there’s just a ton of potential for us as a company and as the industry grows as well.”
Bayes Esports is the go-to address for the Esports Data Industryfor data right holders, consumers and service providers alike. The Berlin-based tech company has developed BEDEX, the World First Independent Esports Data Marketplace for In-Game Data For more info, visit www.bayesesports.com