Many viewers know of the huge numbers of total E-sports prizes or record-breaking streaming views on Twitch. However, not everyone understands the “secret” E-sports organizations use to make money.
Similar to football, the sponsor’s image for E-sports organizations appears on jerseys, streaming channels, at every major event and photo shoots. Of the nearly $ 1.1 billion in E-sports revenue expected in 2019, $ 456 million comes from sponsors, accounting for approximately 41.4%.
Major brands have jumped on E-sports “pie” recently. They sponsor, appearing in every corner, from fast food, competition gear to player costumes. Some brands decide to sponsor a major tournament too, such as a 4-year Nike deal signed with League of Legends. Others want to be associated with the player image, like Red Bull has just partnered with Ninja.
Ninja, the famous Fortnite streamer has just become the image representative for Red Bull.
In general, E-sports is the story of a small screen but is watched by young people on many different media. Young people who love games are a group of customers that are difficult to reach for major brands but are willing to spend money on E-sports. So for big brands, the goal is always to brand the famous players for as long as possible. As for E-sports, they are responsible for bringing the brand image to appear on the media as much as possible.
One of the organizations that do a very good job is Team SoloMid (TSM). Built from an LoL website, TSM has now strived to become one of the world’s largest E-sports organizations. They are also currently one of the few E-sports organizations that have positive cash flow, meaning that their annual profits go to the organizer.
The key to TSM’s success is “content” – content, intellectual property – they create. Mr. Devin “Mylixia” Nash, CEO of Counter Logic Gaming at the recent stream also commented on TSM’s way of making money.