What your parents have to know about esport
Your parents need to know that the term Esport (electronic sport) means playing video games on an organized and professional competitive level.
The games that are part of it, are usually multiplayer and are divided into several categories, some of which are:
- Battle Royale
- Sports simulation
The tournaments are organized like any other sporting event, with referees and commentators.
In recent years, there are also several platforms that give the opportunity to participate in online competitions.
Tyler 'Ninja' Blevins is the first professional player to get a cover of ESPN Magazine, earns at least $500,000 per month among his various companies, and is an essential reference point among the players.
Epic Games wants to invest $100 million in cash prizes among the various tournaments in its first year of competition.
The winners of these tournaments will earn up to $250,000 in a week.
The top 60 Esports players in the world earn at least $1 million a year, coming to compete with the average salary of an NFL player.
The success of Ninja and many others has pushed a generation of young people to get involved and seek success.
The Cloud9 professional team raised $50 million in a funding round according to Esports Observer and Forbes.
These fifty million are to be added to the $ 25 million already collected previously.
The round was conducted by Valor Equity Partners and the founder and managing partner, Antonio Gracias, joined the management of Cloud9.
Other investors include TrueBridge Capital Partners, Reimagined Ventures and GlassDoor.
The American organization will build a facility where players will train and a based office in Los Angeles in 2019.
The structure that will be between 20,000 to 30,000 square meters, will be used as a hub for its teams and staff, as well as for the training and talent scouting of young promises.
In addition, Cloud9 plans to acquire a facility in London in the future, as its Overwatch League team is based there.
The Esports sector has grown exponencially in recent years.
A NewZoo report said that total revenue rose from $493 million in 2016 to $655 million in 2017 and total revenue could exceed $900 million in 2018.
Again according to the same report, revenues in the Esports sector take place in different ways including:
- The sponsors are the main contributors. Until now, most sponsors are companies in the industry such as Intel, Corsair and HP. But in the last few months brands like Macdonald, Gillette and Monster are coming forward.
- Advertisements are the second largest source of revenue. Here too, strictly technological brands dominate.
- Revenues from media rights, that is money paid by platforms like Twitch and Youtube to broadcast live tournaments.
- Revenues also come from tickets and goods during Esports events, as well as merchandising sales. Games like LoL or Overwatch offer themed skins that can be bought in-game to support the various teams.
Another important news is the introduction of a business model: franchising.
This type of business comes directly from American leagues like NBA and eliminates retrocessions and promotions.
In this way there’s a closed league where starting teams, upon payment of the entry fee, will be the same even in the following seasons.
The pioneers of this model are League of Legends and Overwatch. This system is based on three factors:
- Local representative: each team represents a city for which it competes.
- The teams get more bargaining power with the sponsors: without the fear of disappearing or going backwards, you have the possibility to plan company moves in the medium-long term. The sponsors, in turn, know that they can trust the various brands and establish a serious and lasting relationship.
- The sale of TV rights. At this time, Twitch is the most used platform for broadcasting competitions, but in the last period more and more traditional TV broadcasters are taking interest to the transmission of these events.
THE NEW TREND
With the advent of Fortnite more and more young people have approached the sector and more and more parents are having to live with this passion.
Parents today, want to help their children to pursue a career in Esports and for this they decided to hire professional players to train their kids.
One of the most important sites for coaching is GamerSensei.com, customers buy one-hour lessons with a coach, many of whom have a professional Esports background.
In addition to scheduling child training, parents also aim at the manager role.
It’s not uncommon for them to manage social channels and their children's choices.
We are facing a real revolution in thinking and Esports are opening doors that were previously inaccessible.
Following their sons and helping them along this path, is not different from supporting them to football or tennis training.
We are facing a growing sector and, consequently, several careers and earning opportunities.