Esports is becoming so popular that the lines between the virtual pros and those who do it on the 3-D field of battle are becoming somewhat blurred. We can see that the tournament money for esports is soaring, as evidenced by The International 10, Dota 2’s grand championship, with prize money in excess of $40 million with $14 million going to the winning team.
And because of this booming video game economy, traditional sports franchises are teaming up with the heavy hitters who shape the virtual esports world and using their brands to get in on the action. It’s just another revenue stream for teams like the Chargers that gives them exposure to an entirely new demographic.
“The popularity of esports amongst our fans provides a great opportunity for our team to create deeper connections and meaningful engagements,” said Chargers chief revenue officer Jim Rushton. “We think the Chargers Gaming Tournaments will be very popular with our fans and a fun way to compete in an entertaining and social environment with gamers throughout our fan base.”
The NFL football games today are attracting worldwide attention and during the NFL season, Sundays are reserved for nothing but watching football in millions of homes across America. The National Football League has become a religion and SoFi Stadium, home of the LA Chargers and Rams, is one of 30 places of worship.
Moreover, the Chargers are not the only professional sports franchise to align with Esports Entertainment Group, as the Denver Broncos, Baltimore Ravens, Philadelphia Eagles, Indianapolis Colts, Tampa Bay Bucs, New York Rangers and Cleveland Cavaliers have also struck deals with EEG.
“We continue to gain strong traction among top-tier professional sports franchises with our industry-leading tournament platform,” said Grant Johnson, CEO of Esports Entertainment Group. “We are delighted to expand our reach in the NFL through our partnership with the Chargers. Our robust tournament platform will help the Chargers strengthen connections with their fans while providing new avenues for engagement.”
Stock Rising on Esports Entertainment Group
EEG’s fourth-quarter numbers turned heads as they revealed revenue jumped a whopping 63 percent over the previous quarter with revenues soaring to $8.8 million while stockholders’ equity rose to $74.8M, up $63.4M over fiscal year 2020.
Those are staggering increases but there are several reasons why Esports Entertainment Group is a high-flyer and one generating a great deal of interest. Let’s take a look at the deals they have done and the moves they have made recently, generating a wave of new revenue and interest from potential investors.
- Completed acquisition of BetHard, the B2C business of Gameday Group, adding Swedish and Spanish gaming licenses and substantially increasing revenue base.
- New Jersey gaming license formally accepted by NJ Division of Gaming Enforcement in May 2021.
- Completed $35 million private placement of convertible notes with $17.50 conversion price.
- Partnered with Square, the world-leading point of sale and payment processing provider, to integrate its payment solution into ggLeap, a premium esports center management software.
- Partnered with Game Fund Partners to become a part of their venture capital arm and a new planned $300 million game fund.
- Partnered with Hall of Fame Resort and Entertainment Company to become the official esports provider for the Hall of Fame Village powered by Johnson Controls, joining Topgolf Swing Suites and Don Shula’s among others.
- Signed agreement with Associated Students of UCLA to launch state-of-the-art Helix eSports gaming facility inside Ackerman Union, located in the heart of UCLA’s campus.
- Launched crypto mining application at ggCircuit enabled LAN centers.
- Signed exclusive content partnership with ESTV EsportsTV, the world’s first 24-7 live linear video channel dedicated to esports.
- The Company’s SportNation brand was nominated for eGaming’s Marketing Campaign of the Year Award.
The above is just a snapshot of what Esports Entertainment Group has been up to recently and there is plenty more as well. However, it does underscore just how powerful these esports companies are becoming and the interest being generated in the industry as a whole.
It should be noted that esports has experienced a colossal boom since the global pandemic. While nearly all other forms of recreational activity were shuttered due to mandatory quarantines, social distancing protocols, and a ban against large gatherings of any kind, people began to wander over to the one activity they could enjoy in the company of others – remotely, of course – video gaming.
An entirely new demographic was now assuming virtual characters and getting in on an activity that they normally would have ignored. And what’s even more interesting is, as the pandemic restrictions began to ease, many of these new fans are still hanging around. Come to find out, they like it, and what’s more, they are now a part of the esports community. And that is good for business. Just ask EEG.