- Unveiled last month, Toronto’s Overwatch League esports expansion franchise now has a general manager, coach and $21.5 million in equity financing
- OverActive Media Group Inc., the ownership group behind the Toronto franchise, says the $21.5 million is the largest financing in Canadian history for an esports-focused business.
TORONTO — Unveiled last month, Toronto’s Overwatch League esports expansion franchise now has a general manager, coach and $21.5 million in equity financing.
OverActive Media Group Inc., the ownership group behind the Toronto franchise, says the $21.5 million is the largest financing in Canadian history for an esports-focused business.
While a large chunk of change, more will likely be needed. The original cost of a franchise was pegged at US$20 million in its first year of operation in 2018 with reports suggesting the next round would go for a minimum of US$35 million.
“The financing is necessary to meet the schedule of payments that we have anticipated,” said OverActive Media CEO and president Chris Overholt, the former CEO of the Canadian Olympic Committee.
Some will go towards the franchise fee. The rest will help fund initial operations.
Overholt says the initial financing “signals to the market for sure that people are taking this space seriously.”
“Overwatch,” a team-based first-person shooter, has spawned a blue-chip esports league backed by big names and big money.
The Toronto equity financing was led by original investors including tech entrepreneur Sheldon Pollack and Michael Kimel, part-owner of the Pittsburgh Penguins and co-founder of the Chase Hospitality Group.
Others have joined the principal investors, who also included venture capitalist Adam Adamou and the Kimel family led by Michael Kimel as principal owner.
“We’re working every day here. It’s exciting,” said Overholt. “We’ve got good momentum.”
Jaesun Won has been named team general manager with Lee (Bishop) Beom-joon, formerly of the London Spitfire, appointed head coach.
The team is also sorting out its name, with input from fans. The season starts in early 2019.
Vancouver is also joining the league, with Canucks Sports & Entertainment chairman Francesco Aquilini at the helm.
There are currently 12 teams: Boston Uprising, Florida Mayhem, Houston Outlaws, London Spitfire, New York Excelsior and Philadelphia Fusion in the Atlantic Division and Dallas Fuel, Los Angeles Gladiators, Los Angeles Valiant, San Francisco Shock, Seoul Dynasty and Shanghai Dragons in the Pacific Division.
Other expansion franchises for 2019 are Washington, D.C., Paris, and Chengdu and Hangzhou, China. Atlanta and Guangzhou, China, joined the fold last month.
The London Spitfire won the inaugural league championship — and $1 million — in July, defeating Philadelphia 3-0 at a soldout Barclays Center in Brooklyn, N.Y. Philadelphia collected $400,000 as runner-up.
The league is the brainchild of Overwatch developer Blizzard Entertainment, whose gaming portfolio also includes “World of Warcraft” and “StarCraft.” Blizzard says Overwatch is the fastest of its titles to reach more than 30 million players.
The league plans to continue staging its games at Blizzard’s esports arena in Burbank, Calif., in 2019 with plans to stage games in the franchise cities in 2020.
OverActive Media Group used to be The Ledger Group, rebranding in April to “to reflect its focus on the ownership of esports platforms.”
The company has already invested in Splyce Inc., a professional esports team involved in “League of Legends,” “Call of Duty” and “Halo” leagues. It also has interests in Askott Entertainment Inc., a leading esports gaming company, and Enthusiast Gaming Inc., an esports media company.
“We’re going to build out a professional esports company that holds franchises on the inside,” said Overholt.
“We expect to be major players in acquiring franchises for Toronto,” he added.
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Source: https://www.vancourier.com/toronto-overwatch-esports-franchise-starts-to-fill-front-office-and-raise-funds-1.23457694
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