Is Franchising The Future For Esports?

Franchising is a new marketing concept that businesses use to expand their clientele. Prominent sports organizations use it to attract more investors and increase their revenue. Popular bookies such as Betway have efficient franchising systems in their esports leagues. But, the concept is still controversial in the sports industry. In this post, we discuss the impact of franchising on esports.

Franchised Esports Leagues

Many esports organizations attract new sports investors through franchising. The concept has improved the gaming industry in recent years. Riot Games and Activision Blizzard have sophisticated franchising systems that have helped popular sports entrepreneurs like Peter Guber, Ted Leonsis, and Stan Kroenke improve expand their businesses. More publishers will soon franchise their games.

Investment is a crucial factor that determines the success of an esports company. Franchising helps esports organizations increase their enterprise value and stability. Also, it has made esports leagues understandable hence attracting prospective advertisers and owners. Gamers can visit  to play different esports leagues. Some people claim that the franchise charges that sportsbooks incur are inflated. You can only access specific games if you are in a certain region.

The Sports Business Journal interviewed several industry experts about franchising. They stated that esports leagues should consider using this marketing tool. Team owners who try it can make informed decisions about franchising once they make initial investments. It improves the commitment and stability of teams, according to Bryce Blum, the owner of ESG Law and Theorycraft. Sports organizations can create better frameworks through franchising.

Activision Blizzard sold 12 franchise positions in 2017 and earned $20 million. The firm launched Overwatch League last year. The video game firm will launch the Call of Duty League in 2020. The franchised game will cost $25 million. Riot Games earned $10 million after it sold several slots of the League of Legends Series early 2017. It received $13 million from new teams and $10 million from existing teams.

Unfranchised Esports Leagues

Some popular esports leagues such as Counter-Strike: Global Offensive, Fortnite and Dota 2 are unfranchised. Apex Legends, Rocket League and FIFA might integrate franchised systems soon. Unfranchised leagues resemble open tournaments. Teams with certain achievements qualify for the competitions. Relegation and promotion are common in unfranchised leagues.

Jeremy Dunham, the founder of Osyonix Studios believes that franchising doesn’t work in all esports teams. He said that Psyonix has a variety of models to choose from to expand its clientele. They will improve the firm’s financial position and help it pay its players.

Publishers determine whether it is important for an esports to incorporate a franchise system. For instance, Epic Games is focused on developing Fortnite rather than venturing into esports. Also, most of its tournaments favor individual players instead of teams. Franchising is appropriate for sports with a huge fan base thus making it uneconomical for small leagues.

Franchising helps renowned bookmakers such as Betway attract more investors into their sports leagues. It allows organizations to license their business models and intellectual property. Franchises have improved the esports experience of fans and players. Some esports companies earn millions of dollars through advertising, media right charges and sponsorships.

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