Who Owns Esports Teams?

Esports teams are becoming more and more popular, but who actually owns these teams? We investigate the different types of ownership structures for esports teams.

Team Ownership in Esports

Esports teams are usually owned by one of four different types of organizations: game publishers, tournament organizers, traditional sports organizations, and private investors. Each type of organization has its own motivations for owning an esports team and its own advantages and disadvantages. In this article, we’ll take a look at each type of organization and see what they bring to the table.

Traditional Sports Teams

It’s no surprise that many of the biggest names in traditional sports are now involved in esports. In September 2016, the NBA announced the formation of the NBA 2K eLeague, in partnership with Take-Two Interactive, makers of the NBA 2K series of games. This makes the NBA the first major professional sports league to get directly involved in esports.

Other traditional sports leagues have followed suit. In January 2017, it was announced that seven European soccer clubs had formed an esports league, called eDivisie, to play EA Sports’ FIFA 17 game. The following month, it was announced that 17 more European soccer clubs would be joining the eDivisie for FIFA 18. And in March 2018, the National Hockey League (NHL) announced a partnership with EA Sports to create the NHL Gaming World Championship, a tournament for NHL 19 players.

Not content to be left out, North America’s four major professional sports leagues have all expressed interest in getting involved in esports. In December 2016, Major League Soccer (MLS) announced a partnership with Counter Logic Gaming to form MLS’s first ever esports team. In September 2017, it was announced that four National Football League (NFL) teams would be participating in an esports tournament organized by NFL Players Inc., and one month later the NFL revealed plans to launch its own Madden NFL esports league.

Now even Nascar is getting in on the action: In November 2017, Nascar and 704Games announced a new esport series called the eNascar iRacing Pro Invitational Series, which will use iRacing’s simulation software to pit real-life Nascar drivers against each other in virtual races.

Celebrities

It’s no secret that celebrities love to get involved in the world of esports. From Drake to Steve Aoki, a number of celebrities have invested in professional gaming teams or have become team owners themselves. Here are some of the biggest names in the celebrity esports world.

Drake: The Canadian rapper is a co-owner of 100 Thieves, an esports organization that competes in games like Call of Duty and Fortnite.

Steve Aoki: The EDM DJ and producer is a co-owner of Rogue, an esports organization that fields teams in games like Rainbow Six Siege and Overwatch.

Rick Fox: The retired NBA star is the owner of Echo Fox, an esports organization that competes in games like League of Legends, Counter-Strike: Global Offensive, and Mortal Kombat.

will.i.am: The Black Eyed Peas frontman is a co-owner of Echo Fox, an esports organization that competes in games like League of Legends, Counter-Strike: Global Offensive, and Mortal Kombat.

Venture Capitalists

Venture capitalists are firms that invest in companies, usually in the early stages of development, in exchange for an equity stake in the business. Many venture capitalists firms specialize in investments in specific sectors, such as technology or healthcare.

Some well-known venture capital firms that have invested in esports include Accel Partners, Andreessen Horowitz, and Sequoia Capital. These firms have invested millions of dollars into esports organizations, with Accel Partners alone investing $30 million in Super Evil Megacorp, the developer of the popular mobile esport game Vainglory.

VCs usually take a hands-off approach to their investments and leave it to the management of the company to grow the business. However, they may provide guidance and advice when needed. In some cases, VCs may also serve on the board of directors of the company they have invested in.

The Pros and Cons of Team Ownership

Esports teams are a big business. They are worth millions of dollars and are continuing to grow in popularity. Many traditional sports teams are now investing in esports teams. However, there are some pros and cons to team ownership. Let’s take a look.

Pros

There are several advantages to owning an esports team. As the owner, you have complete control over all aspects of the team, from the players and staff to the branding and marketing. You also have the potential to generate a lot of revenue from sponsorships, broadcast rights, and ticket sales. And if your team is successful, you could see a significant increase in the value of your investment.

Another pro is that you can build a supportive community around your team. Esports fans are notoriously passionate and loyal, and they can be a great source of revenue and publicity for your team. If you have a strong brand and a dedicated fan base, you’ll be in a great position to succeed.

Cons

There are a few potential downsides to team ownership in esports. First, it can be expensive to buy into a team, especially if you want to purchase an existing team that already has a good reputation and track record. Second, there is always the risk that your team will not perform well, which can lead to financial losses. Finally, as the owner of an esports team, you will be responsible for all aspects of the team’s operations, including hiring staff, managing finances, and promoting the team.

The Future of Team Ownership

As esports continue to grow in popularity, more and more people are wondering who owns esports teams. There are a few different options for team ownership, and each has its own pros and cons. Let’s take a look at a few of the most popular options for team ownership.

Traditional Sports Teams

As the esports industry continues to grow, we are seeing an increasing number of traditional sports team owners purchasing esports teams. These are some of the most notable traditional sports team owners that have made the jump into esports.

NBA
The National Basketball Association has been one of the most involved organizations when it comes to owning an esports team. In September 2016, the Philadelphia 76ers became one of the first NBA teams to enter the world of esports when they purchased Dignitas and Apex Gaming. This was quickly followed by Houston Rockets, who purchased Clutch Gaming in October 2017.

MLB
Major League Baseball has also made a few forays into esports. In September 2016, Washington Nationals owner Mark Lerner invested in NRG Esports. A few months later, Immortals—the parent company of LoL team Immortals—was reported to have received investment from Steve Kaplan, who is a minority owner of the Memphis Grizzlies.

NFL
The National Football League has been a little bit more hesitant to get involved in esports, but there have been a few instances of NFL team owners investing in teams. In September 2016, Stan Kroenke—owner of several professional sports teams, including the Los Angeles Rams—invested in Echo Fox through his holding company Kroenke Sports & Entertainment. New England Patriots owner Robert Kraft and Dallas Cowboys owner Jerry Jones have also both invested in recent years.

Celebrities

The world of esports has seen a lot of changes in recent years, and one of the biggest has been the involvement of celebrities in team ownership. A-list celebrities like Jennifer Lopez, Shaquille O’Neal, and Alex Rodriguez have all invested in esports teams, and it’s led to a new level of mainstream interest in the industry.

But with the massive influx of celebrity cash, some have raised questions about the future of esports team ownership. Will traditional gaming organizations be pushed out by celeb-backed teams? And what does that mean for the future of esports?

For now, it seems that celebrity-backed teams are here to stay. And while there may be some bumps along the way, ultimately, this could be a good thing for the industry. Celebrities bring with them a level of name recognition and marketing power that can help esports reach new heights.

Venture Capitalists

VCs have been some of the biggest investors in the esports industry, with plenty of deep-pocketed firms sinking millions of dollars into teams and organizations. They’re attracted to the potential for growth in the space and are hoping to cash in on esports’ inevitable explosion in popularity.

However, there are some drawbacks to having VCs as majority owners. For one, they’re not necessarily familiar with the esports industry or how it works, which can lead to decisions that are out of touch with what fans and players want. Additionally, VCs tend to be more interested in making a quick profit rather than building a sustainable long-term business, which could lead to instability within an organization.