Revenue streams you'll get from building your esports team
It’s a common dream for many sports investors to own a team in the big leagues– whether it’s football, baseball, or soccer. What stops them from acquiring a team is the hefty price tag which can cost an upwards of a billion just to wade in. An esports team, on the other hand, can realize a sports investor’s dream of owning a franchise while building a brand for a younger, global market.
Managing and owning an esports team can be risky if the investor focuses on winning league tournaments. Fortunately, this risk can be managed by creating revenue streams from a potential market of 380-million esports viewers and enthusiasts across the globe.
The first revenue stream franchise owners should look at would be content creation at video game platforms like Twitch. These platforms play a billion hours of content to hundreds of thousands of viewers and therefore promise returns for advertising. A team can engage with these viewers while pushing advertisers’ brands.
Sponsorships can mitigate the costs of maintaining the team. Players can wear the logos of sponsors on their shirts to increase their patrons’ brand reach and awareness. This has been the case for big brands like Alienware or Logitech appearing on esports team uniforms.
Esports teams can also earn from their own merchandising as physical sports teams do. It’s a revenue stream that investors should tap when they start their franchise.
Tyler T. Tysdal co-founded CCFO, a multi-family office that manages over $700 million in assets. In early 2015, Mr. Tysdal sold his interest in CCFO. His finance career began in investment banking with Alex Brown & Sons. More on Mr. Tysdal and his work here.
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| Image source: Sogo Gakuen Human Academy |
Managing and owning an esports team can be risky if the investor focuses on winning league tournaments. Fortunately, this risk can be managed by creating revenue streams from a potential market of 380-million esports viewers and enthusiasts across the globe.
The first revenue stream franchise owners should look at would be content creation at video game platforms like Twitch. These platforms play a billion hours of content to hundreds of thousands of viewers and therefore promise returns for advertising. A team can engage with these viewers while pushing advertisers’ brands.
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| Image source: ja.wikipedia.org |
Sponsorships can mitigate the costs of maintaining the team. Players can wear the logos of sponsors on their shirts to increase their patrons’ brand reach and awareness. This has been the case for big brands like Alienware or Logitech appearing on esports team uniforms.
Esports teams can also earn from their own merchandising as physical sports teams do. It’s a revenue stream that investors should tap when they start their franchise.
Tyler T. Tysdal co-founded CCFO, a multi-family office that manages over $700 million in assets. In early 2015, Mr. Tysdal sold his interest in CCFO. His finance career began in investment banking with Alex Brown & Sons. More on Mr. Tysdal and his work here.
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