EXCLUSIVE – Brands must respond to the rise of eSports

The man in charge of the famous Football Manager computer game series, Miles Jacobson of Sports Interactive, has warned the sports business world to ignore eSports at their peril. 

Jacobson is studio director of Sports Interactive, owned by Sega, who develop the famous football simulation series.

The rise of professional gamers and eSports globally, has caught many traditional advertisers and brands by surprise. Although Jacobson thinks the industry is now reacting:

“Advertisers are really taking games seriously now, as they realise the amount of eyeballs they can reach… Part of that is through opportunities inside games. So with Football Manager we have advertising hoardings around the side of the pitch, and it’s a key part when we’re looking at getting rights, is letting leagues know how many eyeballs their brands are going to be seen by.  The leagues and the clubs can use that to get their sponsorship deals up, because of the amount of eyeballs.”

“We have separate advertising deals, where the ad hoardings are clickable, so they’re interactive, so people can put special offers on for our audience. It’s a new medium and a new way of doing things.”

Football Manager has also benefitted from the rise of streaming. Computer game players are now broadcasting themselves playing their games – often to huge audiences. The platform Twitch has been key to the rise, and Jacobson says it’s now a huge part of his industry.

“It’s a very important place for games to be. But it’s also a very important place for people who are fans of e-sports. They’ve got all these different channels, completely unrestricted. Anyone can join Twitch and start broadcasting. In Football Manager for example, you press a button and you can be streaming on Twitch. It’s a great promotional tool for the brands, but it’s also creating stars.”

“A lot of the people who are regular Twitch broadcasters are now getting more traditional roles as well, but they want to stay on Twitch. They’re not that interested on being on Sky or BBC because they are doing very well out of broadcasting on Twitch. If you haven’t been there before, and you want to experience people playing games, it’s much much better than it sounds! It’s genuinely entertaining.” 

eSportsArena

The rise of these stars, through mediums like Twitch, has led to them having audiences which dwarf even the biggest traditional channels, well into the tens of millions. While the rise of the these stars was unexpected, Jacobson says it’s hardly unsurprising. 

“It isn’t that unusual if you think about it. If you look at films, it’s not the director or the script writer who is the star, it’s the person playing the character, or the character itself, who’s the star. So it makes sense we are mimicking that industry, but the sports industry as well. It’s not football that’s the star, it’s the footballers. It’s not the chief executives that are the stars, it’s the managers that are the stars.”

“So while I don’t think anyone expected it to happen in the games or sports industry, it’s definitely the way its going. I think it’s fantastic, we’re seeing talent that would not have had a shot with traditional media, just broadcasting themselves from their bedrooms, whether that be on Twitch or YouTube.”

“You look at someone like PewDiePie, who’s not necessarily in the e-sports world, but he’s earning millions of dollars a year with hundreds of hundreds of millions of views of his videos. Which is a wider reach than any of the TV shows that we think are huge nowadays, or any of the sports broadcasts we think are huge.”

Which leads brands into a somewhat unknown world when they deal with these new stars. The traditional model of advertising doesn’t apply, with the games and gamers able to be more selective with who they work with. But if a brand can get onboard, they get a level of engagement they wouldn’t have experienced before.

“It’s so important for the brands, because for people who play the games, there’s a lot of trust towards the developers and the people doing the videos [on Twitch and YouTube]. So if you are advertising on one of those videos or sponsoring one of those games, you have a better brand fit straight away, because there’s a trust element.”

eSports_Gamer

“Why would this person be doing a deal with this brand if they didn’t like that brand, or didn’t trust that brand. So it is harder to do those deals. There are companies I wouldn’t want advertising in the game, because I may not like their products. So we are able to cherry pick as it doesn’t drive our revenue model entirely.”

“YouTube and the Twitch stars have so many people wanting to work with them, they can also pick and choose.  It’s a very different opportunity to traditional media, you just slap your brand on it, and one that I think is great for the consumer as well as the brands.”

While brands scramble to work with gamers working out their bedrooms, at the other end of the scale, the rise of elite gamers has also become major business as well.

Arenas across the world have started to sell out, and the top players are becoming millionaires.

Major League Gaming has established itself as one of the leaders in that field – their partners Vindicia outlined some of the ways they interact with their audience:

“Major League Gaming has been a client for 4 years, they run gaming tournaments around the world, they’re currently building a stadium in Macau they’re in talks about naming rights for other stadiums for gaming seasons, they’re owners are professional athletes and coaches from the NFL MLB and NBA, the nice thing about eSports is they haven’t given away their rights.”

“The MLG take personalisation very seriously, they have offers that are specific to what you’re interested in based on the data from the website. They’re benefiting from their clients being millennials and teens so they are used to purchasing in this way. As these kids get older, we will have to present them offers in a way that they want to purchase.”

“They’ve gotten very creative with sponsors, they have for example a button in some of their tournaments where you can order a pizza! They’ve been successful with Pepsi, Dominos Pizza bringing them into the model”

VindiciaTedTalk

For Jacobson the sky is the limit for e-sports. The international e-Sport federation are already in discussions with the IOC about recognition. Should they succeed, a spot at the Olympics at 2024 or 2028 could be a possibility. 

“I think eSports is on such a trajectory at the moment it’s neigh-on-impossible to predict where it is going to be in five years. SuperData talks about it being a 1.3 or 1.4 billion dollar industry within three years, I personally think that’s the lowball figure with the way things are going now.”

“We will see a stadium in Europe sell out for an e-sports event in the next two to three years, arenas are selling out all the time. It’s only a matter of time until it becomes recognised as another full sport, rather than an eSport and the way it’s being looked at now.”

“The kids that are playing these games are super talented, and what they can do with their fingers is as good as what footballers can do with their feet. So why shouldn’t they be getting that credit and becoming proper superstars of the future”.

FOOTBALLMANAGER

eSports have the power to rip up the rule book, written by traditional sports. Brands, broadcasters, and the wider sports industry needs to sit up and notice the seismic changes going on. Many have already. Jacobson’s message to the sport industry is clear:

“I think people in the sports industry need to take interest, because e-sports is talking to an audience that, at the minute, you’re struggling to get to. If you go to a football stadium or a rugby stadium, the audiences tend to be quite old, compared to when I was growing up, when it was mainly kids.”

“So while you have that captive audience now, in 10 or 20 years time, when people fall out, you might not have new people coming in. So getting involved in eSports and talking to people who love e-sports is going to be great for your brand, and hopefully getting those people back to traditional sports, as well as e-sports.”

Whether it be elite level e-sports, virtual advertising, or the latest Twitch star broadcasting from their room, it’s an industry that only seems to be growing, and bringing onboard more and more partners.

{jcomments on}

ONE World Sports Picks up Rights to Barça TV in U.S.

American global sports network ONE World Sports has agreed a strategic rights deal with Univision Deportes that will see them become the exclusive English-language U.S. TV home of Barça TV, erectile  the official in-house channel of Spanish LaLiga giants FC Barcelona.

Across all of its platforms, ONE World Sports will have access to exclusive player interviews, insider access to special event coverage and game day analysis.

The network will also provide encore presentations of all Barcelona matches including all La Liga, UEFA Champions League and Copa del Rey competitions.

“Through ONE World Sports’ partnership with Univision, we will bring F.C. Barcelona to the U.S.,” said Joel Feld, ONE World Sports Executive Vice President, Programming & Production.

“Barça TV provides soccer fans an insider perspective of some of the greatest players to ever step on the pitch that you just cannot get from only watching the match.”

Juan Carlos Rodriguez, president of Univision Deportes said: “This new deal with ONE World Sports is one way we are leveraging our extensive portfolio rights in ways that make sense for our business.

“This agreement allows Univision Deportes to deliver soccer content our fans care about most on Univision’s platforms while maximizing the value and exposure of our rights portfolio.”

The Rocky Road to Rio: Brazil’s Testing Facilities Under the Microscope

Earlier this month the World Anti-Doping Agency’s Foundation Board unanimously voted to declare the national anti-doping agencies for Russia, Andorra, Israel, Argentina, Bolivia and Ukraine non-compliant with its code.

Additionally, Brazil, Belgium, France, Greece, Mexico and Spain have all been placed on a WADA watch, meaning their “anti-doping agencies must meet strict conditions by March 18, 2016 or be deemed non-compliant”.

What makes these moves especially pertinent are that Rio hosts the Olympics next year, while Paris is bidding for the 2024 Games.

Rio2016_Torch

These revelations have not made enjoyable reading for the sport of athletics; the IAAF has received strong criticism over revelations of systematic doping in Russian athletes, with potential for more offenders emerging worldwide.

The dim light at the end of the tunnel, perhaps, is that there is time for things to be brought in line in time for next year’s summer games, creating a much fairer playing field for the global sporting elite.

Just last May WADA announced that Brazil’s drug-testing laboratory has seen its status as an Olympic-standard facility restored having been stripped of its ranking two years earlier. The lab had failed to meet international standards so the Brazilians were forced to undertake significant work to improve testing conditions.

In the hiatus between WADA’s stance and local efforts to remedy the labs, Brazil hosted the 2014 FIFA World Cup and had to fly urine samples, at great expense, to Switzerland for testing.

Versapak1

Even though WADA has now approved Brazil for testing, it should be noted that the Rio lab has the capacity for 3,000 tests at next year’s Games compared with the 5,000 processed in London in 2012.

As things stand, the only other WADA accredited laboratory in South America currently is in Bogota, Colombia as Argentina and Bolivia have been declared non-compliant.

By way of comparison, even if the watch listed countries of Belgium, France and Spain are excluded, Europe has 12 accredited labs operational so South America has a lot of catching up to do.

With testing coming under intense scrutiny, improvements need to be made very quickly.

Versapak2

For some of the countries implicated in the WADA report the consequences are yet to be decided. Russia has accepted its ban from the IAAF, with caveats that they will be allowed to compete in Brazil if certain conditions are met. Russian athletes will be monitored even more closely between now and Rio, as – owing to further investigations currently being held – will the elite competitors from Kenya and Ethiopia.

The creativity with which sportsmen and women have avoided detection over the years proves that any cheaters will do their best to be one step ahead of the testers.

Ironically, this doesn’t mean that testing times are restricted to athletes, WADA and IAAF are also under pressure. With the next Olympics only a matter of months away, the road to Rio is looking distinctly rocky and doubtless will come to a dead end for some.

Francis Cassidy, Versapak’s Chair of Doping Control.

Reebok Acquires LUTA and Invests in Fight For Peace

Reebok International has announced it has purchased boxing and martial arts brand, order  LUTA, and a long-term alliance with Fight for Peace.

The details of the partnership have not been disclosed but at the beginning of 2015, a percentage of sales of selected Reebok products will support Fight for Peace.

Matt O’Toole, President of Reebok, said: “We are honoured to be able to establish this partnership with Fight for Peace and include LUTA within our sporting portfolio.

“The work Luke and the team have done over the years to help young people who are growing up with tremendous challenges, surrounded by drugs and violence, is remarkable and is something we are looking forward to supporting and expanding so that together we can help even more young people at risk.”

Luke Dowdney MBE, Founder of Fight for Peace and LUTA, said: “Our new partnership with Reebok and its acquisition of LUTA is incredibly exciting for Fight for Peace and its future.

“Both organizations share a strong belief in the power of fitness and training and the impact it can have on young people’s lives, particularly those at risk of being involved in crime and violence.

“Working with Reebok allows us to continue to build awareness for Fight for Peace, as well as secure a long-term funding structure for us to develop our international growth and development.”

 

 

FIFA Audit and Compliance Committee to Review Garcia Report

FIFA have confirmed they are to further review the 42-page report written by prosecutor Michael Garcia into the bidding process for the World Cups in 2018 and 2022.

Garcia and the head of FIFA’s ethics committee adjudicatory chamber, pharm Hans-Joachim Eckert, buy cialis had their scheduled meeting yesterday which is the first time they have met to discuss the fallout of the report released last week.

A joint statement released by Garcia and Eckert today confirmed that the report will be handed over to the chairman of FIFA’s Audit and Compliance Committee who will “fulfil his fiduciary and statutory duties and to determine how much of that information should be made available to the FIFA Executive Committee”.

The statement read: “The chairman of the adjudicatory chamber and the chairman of the investigatory chamber of the FIFA Ethics Committee met today to discuss the recent developments and the current situation regarding the inquiry on the bidding process for the 2018 and 2022 FIFA World Cups”

“Both chairmen agreed that it is of major importance that the FIFA Executive Committee has the information necessary to evaluate which steps are required based on the work done by the FIFA Ethics Committee.”

Through the statement Garcia and Eckert also confirmed that cases had been opened against individuals.

“The investigatory chamber has already opened a number of formal cases against individuals as a result of that inquiry.

“Neither the recent referral of the reports to the Swiss Federal Public Prosecutor’s Office nor the request to the chairman of the FIFA Audit and Compliance Committee will interfere with those ongoing proceedings.”

“Both chairmen stressed the vital role of the FIFA Ethics Committee in ensuring the highest standards of ethics and governance at FIFA. Irrespective of the independence of the two chambers, the two chairmen regard good communication as key to fulfilling that role.”

Please watch our latest Sports Law Show which features the Garcia Report.

BOA Confirm Fight For Peace as Charity Partner for Rio 2016

The British Olympic Association (BOA) has announced Fight for Peace as one of its charity partners for the Rio 2016 Olympic Games.

Fight for Peace is a Non-governmental Organisation which combines boxing & martial arts with education and personal development in communities affected by crime and violence and have academies in both London and Rio de Janeiro.

As part of the agreement the BOA will provide expertise and counsel for Fight for Peace staff in the development of a sport performance programme with support of Team GB and its sporting partners.

The partnership has also been created with the purpose of encouraging inspirational exchanges between Olympians, athletes, coaches and the young people at Fight for Peace.

The BOA will work with Fight for Peace to facilitate visits from Team GB athletes and training workshops for coaches at both of the Fight for Peace academies in London and Rio.

Additionally Fight for Peace will support British Olympic Association’s marketing campaign in the run up to Rio 2016 as they begin to build support for Team GB both in the UK and Rio.

Both organisations will also adopt a collaborative approach with the British Olympic Association’s youth engagement programme, Get Set; encouraging healthy, active lifestyles, communicating the Olympic Values and sharing content about preparations and plans for the Rio 2016 Olympic Games.

CEO of the British Olympic Association Bill Sweeney, said: “The BOA and Fight for Peace share a core belief – that sport can transform lives. This partnership will enable us to share expertise and resources, helping Fight for Peace to continue their great work and helping us to have a presence and voice in Rio as we prepare for the Games.

“We are looking forward to working with Luke and his team to ensure that Team GB has a positive impact in Rio and Brazil in the run up to, during and after the Rio 2016 Olympic Games.”

Luke Dowdney MBE, Founder of Fight for Peace, said: “It is an honour and pleasure to be working with the British Olympic Association. This is a fantastic opportunity for us to have access to the expertise and talent within the organisation and we are really excited about the opportunities ahead.

“We believe that this partnership will add real value to the work that we already do at Fight for Peace as it will help to drive awareness of the charity and also help to improve our sport performance programme which plays a vital part in attracting young people to our Academies and away from an alternative life of crime and violence.”

Steve Parish Confirmed as Panellist For Directors’ Club’s Return to London

iSportconnect, diagnosis the world’s largest private network for sports business professionals, medicine is delighted to announce the Directors’ Club will be returning to London on 26th November.

This will be the final Directors’ Club of 2014 and along with Abu Dhabi and Dubai, medstore will be the third Directors’ Club to be held in November, displaying the growing success of the event.

iSportconnect is delighted to announce Crystal Palace FC Chairman Steve Parish as the first panellist for the Directors’ Club.

Parish has been the Chairman at Crystal Palace since 2010 after he, along with a consortium of another three businessmen, acquired the club.

Prior to his role at Crystal Palace, Parish founded and owned global brands services company, Tag Worldwide.

Originally starting in London, iSportconnect Directors’ Club events are a gathering of exclusively invited director level delegates, partaking in a BBC Question Time-style discussion with a panel of well-established executives from the sport industry.

Followed by networking, the discussion is held under Chatham House rules, allowing for an open and free flowing debate.

The event will be followed by a Christmas Dinner. The venue for the event and the dinner will be announced soon.

Michael Cunnah, Chairman of iSportconnect, said: “We are delighted to welcome Steve as a panellist for our next Directors’ Club in London. Steve has been very successful in leading Crystal Palace back into the Premier League and will give us great insight into the sports industry.”

Save the date: 26th November 2014

To register your interest contactsylvia-line@isportconnect.com

Invitation Policy: iSportconnect Directors’ Club is an invitation only event open exclusively for CEOs, chairmen and director level executives from governing bodies, sports teams and sponsorship brands.

Social Media Policy: The iSportconnect Directors’ Club follows Chatham House rules and therefore all content must be kept inside.

We encourage delegates to tweet pictures and use our hashtag #iSCDirectorsClub but please do not quote panellists.

Partnership opportunities: Our partners benefit from a range of different branding opportunities and introductions to potential clients. Please contact Woolf at woolf.thomson-jones@isportconnect.com or call +44(0)20 3239 5400

To watch highlights of previous iSportconnect Directors’ Clubs click here.

Event Partners

UFC_Logo     OmnigonLogo     Mitoo_Logo      

Exponential_Logo     PrivatAir_Logo      SportlobsterLogo

{jcomments on}

NRL Clubs to Receive Additional Cash Grants from Next Season

National Rugby League (NRL) chief executive Dave Smith has revealed clubs will receive an extra $450,000 next season. The additional money comes as an advance from future club funding.

The additional cash increases the annual grants received by clubs from the governing body to $7.55 million. Smith says this decision has been made as part of a strategic overhaul of the game’s finances. The NRL administration will aim to generate substantial profits outside of broadcast revenues, which will allow club’s to focus on long-term stability and fund the game’s central administration.

Smith said: “We have already undertaken the most detailed benchmarking exercise in the game’s history.

“We have a chance now to give clubs certainty for 2014 and plan where we can most effectively invest in growing the game in the years ahead.

“The club council recognises the importance of what we are trying to achieve and has been supportive of the process we are undertaking.”

Lyon to Advance Stadium Development

French football club Olympique Lyonnais will proceed with proposed plans to develop their new Stade des Lumieres home, order as France prepares to host the European Championships in 2016.

Lyon hope to move in ahead of the 2015/16 season after playing at their current Stade de Gerland home since 1950.

Stade des Lumieres will be constructed roughly seven kilometres from the centre of Lyon and is set to play a major role in Euro 2016.

The country’s Finance Minister, Pierre Moscovici said: “The completion of the stadium is the result of determination and is an important day for the region and for local employment.”

The stadium will be the first in the country funded entirely by private investment.