About a year and half ago I shared the growth of eSports in This is the Future and this week saw an article in the financial post where the owners of the Canucks Sports and Entertainment, The Aquilini’s, have invested in numerous eSports leagues and teams starting back in August 2018 to build the biggest e-Sports gaming network in North America less that 2 years later.
In 2018 the industry projections of e-Sports were projected to exceed $1 Billion, and now is over $1.5 Billion, a further 50% growth in just over a year with no signs of slowing down, similar to the 400% growth rate of the youth sports sector since 2010 in Canada.
Here are the numbers shared in recent article in the Financial Post;
- Dota2 Event hosted in Rogers Arena August 2018 had $25 Million in prize money, $11 Million going to the winning team
- eSports events hosted across the world in the very same arenas that professional sports teams play in (NHL, NBA) are selling out faster than the top musical acts are
- Ticket prices average $40 for fans of the eSports “athletes” to attend the live events, generating over $600,000 in ticket revenue alone per event
- According to MarketingHub, a market research firm, 800K people had heard of the growing niche industry in 2015, by 2019 the awareness had grown to 1.57B
- Revenue has been increasing by more than 30% per annum, in 2016 was $493 M USD, $906 M in 2018 and is projected to exceed $1.6 B USD in 2021
- eSports is inclusive, regardless of your sex, orientation, nationality etc. if you can play you can play online against any gamers across the globe
What the Aquilinis realized in 2018 like many others in the top 5 professional sports space is eSports is no longer a niche phenomenon but it is growing exponentially and as a means to further grow revenue streams and tap into a new and evolving fan base is to invest in the eSports industry.
Other prominent owners in professional sports have done the same
Jerry Jones – the owner of the Dallas Cowboys, one of the top professional sports franchises in the world, has purchased an esports team, including the purchase of a house in the Dallas area for them to live, eat and to hone their craft who is coached by one of my colleagues, James Leath, founder of Unleash the Athlete. For insight listen to the podcast of the week HERE when I talked to him.
Prominent athletes and celebs are also investing millions into esports
- Michael Jordan, arguably one of, if not, the Greatest Basketball Player of all time, invested $26 Million in eSports organization Team Liquid
- Canadian Rapper Drake who was shown supporting the Toronto Raptors as they made their amazing run to the NBA championship last year has invested in esports organization 100 thieves with teams that compete in games like Call of Duty and Team of Legends
- Steph Curry and teammate Andre Iquodala invested $37 Million in eSports organization TSM whose teams compete in games League of Legends and Fortnite
- Hall of Fame Quarterback and now NFL commentator Steve Young also tagged into the investment made by Steph and Andre and part of the funding will be to build a 15-20,000 square foot eSports facility in Los Angeles
- Rapper Sean “Diddy” Combs along with a group of investors provided just over $30 Million in funding to PlayVS eSports League Based in Los Angeles that allows high school students to represents their schools in eSports competitions and can qualify for the growing number of collegiate scholarships for competitive gamers.
- Former Golden State Warriors Team Mate Kevin Durant invested $38 Million in Vision ESports and esports investment fund and management company
Professional Sports Leagues have also jumped onto the bandwagon starting in 2017
Since this interview in 2017;
- NBA formed a joint venture with Take 2 Interactive to form NBA2K League whose inaugural seasons was in 2018 with 21 teams who are owned by NBA Teams and has partnered with the likes of Champion, AT&T, Snickers as key sponsors
- NHL franchises are also forming leagues, starting with Monumental Sports & Entertainment (MSE) the parent company of the Washington Capitals working closely with EA Sports.
- Maple Leaf Sports and Entertainment (owners of the Toronto Maple Leafs) also is hosting one on one as well as eSports tournaments based on the same EA Sports iconic video game and several other NHL teams are tipping their toe in the water investing in various eSports tournaments, leagues and teams.
- Major League Baseball (MLB), Major League Soccer (MLS) and even the largest professional sports in the world, the NFL with over $13 Billion in annual revenues, is jumping on the esports bandwagon starting with the Minnesota owners investing in Activision Blizzard.
It also has gotten the attention of what used to be a focus on amateur sports, the International Olympic Committee, who has shifted their mindset over the years to permit professional athletes from the MLB, FIFA, MLS, NBA, NHL to participate in winter and summer games.
They also entered into discussions with INTEL last summer to continue on the momentum of pre-Olympic showcase event before the Pyeongchang Winter Games for eSports to be an Olympic event in Paris Summer 2024 Olympics.
If you have been coaching youth sports, a former youth or even professional athlete you’re probably shaking your head why the Olympics would even consider why playing video games could even be considered as sport? Some would argue Poker, bowling, darts are games also but do get considerable coverage on ESPN and other sports networks when major sports like NFL, NHL, NBA, MLB seasons are over.
Here is some insight in terms of the neuroscience what is needed to be a gamer at a high level;
That the video game industry, thanks to PlayStation and Microsoft 360 as well as PC games is now over a $138 Billion USD industry worldwide, has now gotten the attention of celebrities, professional athletes, teams and the Top 5 Professional sports to create a spin-off industry to generate even further revenues via competitive events for one vs. one and team play.
Youth Sports has also grown exponentially in Canada and the US in terms of revenues since 2010 as more and more families go all in supporting their kids chasing the dream of full-ride scholarships or playing professionally, based on the growth of eSports suspect will see that spin-off as well.
Sadly, as more and more specialize earlier and earlier, more and more are quitting because what started out as a fun activity became work as many games are sharing when they retire from competitive game play.
Like overuse injuries in young youth sports athletes as a result of the early specialization phenomenon, a recent science daily article share insight how esport athletes who participated in a study are also at risk for various physical, psychological disorders;
- 56% reported eye fatigue
- 42% report neck and back pain
- 36% wrist pain
- 32% hand pain
- Yet only 2% sought medical treatment
- 40% get no physical activity per day, and average video game playing time is 10-12 hours/day
Although video games have evolved into the competitive eSports industry, youth sports are showing similar trends in terms of physical and physiological health issues including
- 400% increase in ACL tears
- Over 60% of current Tommy John Surgeries on 15-18 year old arms
- Over 200% increase in concussions
- Increase in mental health issues due to pressure to perform, meet parental expectations for return in investment
Both Multi-Billion Industries are suffering from CHRONIC overuse injuries being sustained by KIDS?
Maybe it’s just me, but Houston, we have a problem … a very big problem as these trends will merely lead to a major impact on the medical system in future that is already pushing its limits due to funding challenges to hire nurses, doctors and other support staff.
More than ever, we have to work together to bring the game back to the kids so kids can play for the sake of playing again, not chasing the almighty dollar at a lifestyle pace that is not sustainable long term.