Can You Invest In Esports Teams?
Contents
Can You Invest In Esports Teams? The Answer Is Surprisingly Complicated – Forbes
Introduction
The global esports economy will reach $696 million in 2017, according to a new report by games and esports analytics firm Newzoo. This is up 38% from last year. And it’s expected to grow to $1.5 billion by 2020.
This growth is being driven by investment from traditional sports teams, media companies, and brands. And it’s resulting in some big changes in the esports landscape.
One of the most notable changes is the influx of investment from traditional sports teams. In the past year, we’ve seen teams like the Houston Rockets, Manchester City, and the Golden State Warriors invest in esports teams. And it’s not just NBA and soccer teams getting involved. NHL teams like the Florida Panthers and Edmonton Oilers have also made investments in esports.
This trend is being driven by the fact that traditional sports teams see esports as a way to reach a younger demographic of fans. And as esports continues to grow, we can expect to see even more investment from traditional sports teams.
Another big change we’re seeing in esport
The birth of esports
With the integration of video game culture into mainstream society, Esports has seen a significant rise in popularity in recent years. The increasing accessibility of technology and broadband internet has allowed people from all over the world to compete in online gaming tournaments for cash prizes.
The birth of esports can be traced back to 1972, when Atari held the first video game tournament for its space-themed game Spacewar. The competition was held at Stanford University and had a grand prize of a year’s subscription to Rolling Stone magazine. From there, the popularity of esports grew throughout the 1970s and 1980s with the advent of arcade games like Pac-Man and Donkey Kong.
The 1990s saw the introduction of dedicated esports tournaments, such as the World Cyber Games and the Intel Extreme Masters. These competitions featured games such as Quake, StarCraft and Counter-Strike. The early 2000s also saw the launch of professional esports leagues, such as Major League Gaming and the Cyberathlete Professional League.
With the growing popularity of streaming services like Twitch, esport events have become more widely available to spectators around the world. In 2013, Twitch was responsible for broadcasting more than 860 million hours of esports content. This number has only grown in recent years, with Twitch now boasting over 15 million daily active users.
The market for esports
The esports industry is growing rapidly, with new tournaments and leagues cropping up all the time. This growth has led to an increase in the number of people who are interested in investing in esports teams.
There are a few different ways to invest in an esports team. One way is to simply buy a team that is for sale. Another way is to invest in a team that is not yet for sale, but which may be looking for investors in the future. Finally, you can also invest in an esports league or tournament, which can give you a stake in the success of the league or tournament itself.
No matter which route you choose, there are a few things to keep in mind before investing in an esports team. First, it is important to do your research and make sure that you are investing in a team that has a good chance of success. Second, it is important to have a clear understanding of the financial risks involved. And third, it is important to remember that your investment may not pay off immediately – it may take years for an esports team to achieve success and generate profits.
The investment potential in esports
A new study from Activate finds that the esports economy will reach $696 million in 2017, up 41% from last year. And, by 2020, the global esports economy is projected to be worth $1.5 billion. Of that, $696 million will be generated directly through esports activities and activities related to it such as media rights, tickets, and sponsorship. Indirect revenue, which includes things like game publisher fees and consumer spending on gaming hardware, is estimated to bring in an additional $822 million this year. By 2020, those numbers are expected to rise to $1.48 billion and $2.96 billion respectively for a total of $4.4 billion
Risks associated with investing in esports teams
Before you invest in an esports team, it’s important to be aware of the risks associated with this type of investment.
The esports industry is still in its early stages, which means it is subject to a lot of volatility and uncertainty. This can make it difficult to accurately value an esports team, and investments can lose value quickly if the industry doesn’t grow as expected.
Another risk to consider is that many esports teams are affiliated with specific game publishers. This means that if a publisher decides to stop supporting a particular game, the team’s value could drop significantly.
It’s also important to be aware of the legal risks associated with investing in esports teams. The industry is currently unregulated, which means there is no governing body to protect investors from fraud or misrepresentation.
Before investing in an esports team, be sure to do your research and work with a reputable investment advisor who understands the risks associated with this type of investment.
Conclusion
In conclusion, while you can certainly invest in esports teams, it’s important to do your homework first and understand the risks involved. The esports industry is still fairly new and volatile, and there is no guarantee that your investment will pay off. However, if you’re a fan of esports and have some money to spare, investing in a team can be a great way to show your support and potentially make some money down the road.
