
Esports Future Comes Into Focus at Sports Decision Makers Summit in Miami By Ken Kerschbaumer, Editorial Director
Wednesday, May 8, 2019 - 1:14 pm
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The future of Esports and its role in the traditional sports media landscape was the subject of a panel discussion at the 2019 Decision Makers Summit, produced in Miami this week by SportBusiness and Sportel. Gaming is a part of our mainstream culture as it is a $150 billion industry and is bigger than Hollywood, says Bobby Sharma, founding partner, Electronic Sports Group. Esports is a $1 billion industry and that speaks to the opportunity to reach an under-utilized audience that is enthusiastic, 18-34 years old, global, digital, highly educated, and relatively wealthy. It is a bit of a moving target as the industry evolves but the opportunities are there.
(l-to-r) Eric Fisher of SportBusiness moderated a discussion with Tyler Schrodt of EGF, Bobby Sharma of Electronic Sports Group, and Lance Mudd of the U.S. eSports Federation.
The explosion of interest in Esports has resulted in traditional leagues like the NBA and NFL embracing Esports versions of their sports. On one hand the minutes a gamer spends playing a video game version of a sport means they are not engaged with the actual sport, but it also allows the sport a chance to open or expand a relationship.
One of the things I love about NBA2K is the NBA knows exactly what they are there for, says Tyler Schrodt, founder and CEO of the Electronic Gaming Federation which brings Esports facilities and operations to high schools and universities. They want to drive younger engagement with the NBA and create new fans. It's really all about entertainment consumption.
Lance Mudd, founding member and sport director of the United States eSports Federation, agrees that there is an opportunity to drive Esports players to traditional sport and that it is also about entertainment. There is, however, a need for more stability as a game like Fortnite captures the gaming community's attention only to have its hype wiped away by Apex Legends before reclaiming the hype. His organization is a non-profit that is the official governing body for Esports in the U.S. and also a member of the International eSports Federation. A key goal is to nurture, inspire, and protect Esports athletes and the culture by uniting the wide variety of stakeholders in the industry.
For game publishers Esports is a pure marketing effort as they want to increase longevity of the game and have a loyal community across many different titles, he says. The question now is how to take Esports forward and help investors and also help teams gain legitimacy.
Storytelling, and helping non-players understand the games, is key to that effort.
You want people to be at a bar and interested in watching it, so you need to help the random person understand what is happening and that means increasing the production value, he adds.
While there may be a perception that gamers are not active or interested in real sports that is simply not the case. Schrodt points to a survey that found that 60% of gamers in high school also were wrestlers or played football and other sports. And Sharma says that 70% of games watch traditional sports.
The relationships with Esports and leagues like the NBA did come to market in a disingenuous way, he says. The NBA's effort was pretty transparently about marketing and connecting to that 70% and even the other 30%. The goal is to make the NBA the league of choice.
The trick is to not lump all games into one bucket. Each game has its own player population with its own cultural identifiers and commercial opportunities across those audiences. That makes it similar to traditional sports and also why it makes sense for traditional sports leagues to get involved, even if it is as a hedge against concerns about the aging fans of traditional sports.
The investments in Esports is not just about the big-time competitions that can dominate the gaming news cycle. There is a constant and steady beat of competitions on Twitch and also at high schools and college campuses. That amateur market is an important one and Schrodt's company offers out-of-the-box Esports solutions that can get school up and running with a program and also make them part of the National Intercollegiate Esports League.
There is an opportunity to look at using the traditional sports blueprint and make investments that are similar, he says. Our league structure is more like the MLS. But colleges are investing immense amount of money in new facilities and even high school state associations, districts, and local government is getting involved.
The investments and interest are coming fast as last year saw a massive influx of investment capital. But money doesn't get rid of bumps in the road and there are still plenty of issues to be sorted out such as increased oversight and governance, athlete safety, well-being, and managing growth responsibly. Also, the audience demands authentic partners, so as more money comes in the dangers of those who are less than sincere increases bringing its own challenges.
It's a digital first and a global audience that is growing, says Sharma. It's also here to stay.
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