SPONSOR: Enthusiast Gaming Holdings Inc. (TSX-V: EGLX) Uniting gaming communities with 85 owned and affiliated websites, currently reaching over 150 million monthly visitors. The company exceeded 2018 target with $11.0 million in revenue. Learn More

The Battle for Esports Dominance is on

• As esports teams battle out in front of millions of fans online, companies are engaging in similar warfare as they look to lock up sponsorship deals with some of the most prized assets in the industry
• This year, esports sponsorship revenue is projected to be the highest revenue stream at US$456.7 million, growing 34.3% from 2018 (NewZoo, 2019)

By: Ben Feferman

The race is on! As esports teams battle out in front of millions of fans online, companies are engaging in similar warfare as they look to lock up sponsorship deals with some of the most prized assets in the industry. This year, esports sponsorship revenue is projected to be the highest revenue stream at US$456.7 million, growing 34.3% from 2018 (NewZoo, 2019). As casual fans continue to tune into extended amounts of esports content daily, businesses are beginning to understand the value proposition that esports presents; an industry that is ubiquitous, interactive and rapidly growing. In turn, sponsors provide vast amounts of financial resources that help transcend the nature of esports events, teams and players, alike.

Top Sponsors in Esports

Intel (NASDAQ: INTC)

From producing CPUs to dabbling in the game, Intel has held the longest sponsorship in esports with the Electronic Sports League (ESL). The two companies announced a partnership in which they will invest US$100 million towards esports initiatives to help the global growth and expansion of esports. Intel also sponsors many large esports events, including Intel Extreme Masters, ESL One, Intel Grand Slam, Counter-Strike: Global Offensive Pro League and the LPL league.

T-Mobile (NASDAQ: TMUS)

T-Mobile is a telecommunications company that started sponsoring some major teams very early. In 2017, T-Mobile was sponsoring both Cloud 9 and TSM, some of the largest esports teams in North America. Although they no longer sponsor those teams, T-Mobile continues to make an impact in the Overwatch League (OWL) by sponsoring the league and two of its teams, the Houston Outlaws and New York Excelsior.

BMW (ETR: BMW)

BMW is switching gears in 2019 as it begins to watch the esports landscape closely. The automotive company not only sponsored its first esports team in 2019 in Cloud 9, but also partnered with Brazil’s paiN Gaming in the same year.

Nike (NYSE: NKE)

It is hard to imagine a competitive environment in this world that does not have Nike’s footprint. Nike treats esports the exact same way. Nike supports esports athletes, such as Jain “Uzi” Zihao (Chinese League of legends Pro), through endorsement deals and sponsors the Chinese League of Legends Pro League, supplying the entire 16 team roster with Nike apparel. Through these synergies, Nike hopes to create sportswear catered to the esports audience and training programs for gamers to improve.

SAP (NYSE: SAP)

In a data-driven age, where analytics are helping countless athletes improve, it is only natural for electronic sports to follow the same path. In 2018, SAP, a business software company, announced a three-year sponsorship with Team Liquid to help improve the team’s performance through innovation in data driven analysis. SAP will use its SAP Huna, a business analytics platform, along with Team Liquid’s DOTA team’s collaboration to help pioneer the first wave of deep game analysis. SAP also sponsors large events, such as ESL and DreamHack, to provides these live events with data analysis using its cloud platform.

As the arms race heats up for dominance in esports sponsorships, the companies with established relationships with top tier teams and leagues will have a strong first to market advantage. However, with the centrality and fragmentation of the industry, there are still many untapped pockets for new entrants.

The vast majority of esports companies, be in teams, franchises or content plays, will be relying on corporate sponsorships to drive revenue and these companies know, sponsorships are what will continue to drive their valuations. This market is going to heat up and get way more interesting.

Other Large Esports Sponsors.

• Honda (TYO: 7267) – Team Liquid
• Monster Beverage Corp (NASDAQ: MNST) – PSG Esports
• Nissan (TYO: 7201) – FaZe Clan, Optic Gaming
• Puma (ETR: PUM) – Cloud 9
• HTC Cord (TPE: 2498) – FaZe Clan
• Pepsi (NASDAQ: PEP) – Team Dignitas, Splyce, Sk Gaming
• Disney (NYSE Disney) – Team Liquid
• Daimler AG (ETR: DAI) – ESL
• Razor (HKG: 1337) – Immortals, Evil Geniuses, Seoul Dynasty, LA Valiant, EDG,

Source: https://investorintel.com/sectors/esports-gaming/esports-gaming-intel/battle-for-esports-dominance/

• Announced that it has partnered with Hanesbrands Inc.’s Champion® brand to create custom apparel  for Enthusiast Gaming’s Esports Division, Luminosity Gaming and loyal fans worldwide
• Exclusive launch at Enthusiast Gaming Live Expo, EGLX, October 18-20 in Toronto

TORONTO, Oct. 18, 2019  — Enthusiast Gaming Holdings Inc. (TSXV: EGLX)(FSE: 2AV) (“Enthusiast Gaming” or the “Company”) is excited to announce that it has partnered with Hanesbrands Inc.’s (“HBI”) Champion® brand to create custom apparel  for Enthusiast Gaming’s Esports Division, Luminosity Gaming (“Luminosity”) and loyal fans worldwide. With over 50 professional esports players and influencers reaching 60 million collective followers, the collaboration with the Champion® brand reconfirms Luminosity’s brand power as one of the largest, globally recognized esports organizations in the world. 

Steve Maida, President of Enthusiast Gaming’s Esports Division, Luminosity Gaming commented, “For a brand as powerful as Champion to partner with our Esports Division, Luminosity Gaming, further proves the dominance and sheer size of the gaming and esports industry. We can now offer our fanbase of over 60 million an opportunity to buy exclusive Luminosity gear and proudly represent Team Luminosity. HBI’s Champion® brand is a leader in providing merchandise and attire to loyal esports fans, and we are excited to continue collaborating with them to create our unique Luminosity+Champion clothing line.”

The Luminosity+Champion custom apparel will launch at Enthusiast Gaming Live Expo, EGLX, taking place on October 18 – 20, at the Metro Toronto Convention Centre in downtown Toronto. With 55,000 attendees in 2018, EGLX is the largest video game expo and esports tournament in Canada. Attendees of the expo will have an exclusive chance to purchase the Luminosity+Champion apparel and represent Team Luminosity. The Luminosity roster includes esports influencers Nicks, Kiwiz, Formula and Plu, Grammy-nominated rapper Tory Lanz, and Team Captain, NFL star Richard Sherman. 

Following EGLX, the Luminosity+Champion custom apparel will be available exclusively on Luminosity’s website (Luminosity.gg), and through the organization’s social media channels. 

Tyler Lewison, General Manager of Champion® Teamwear (a division of HBI) commented, “Luminosity Gaming is one of the largest globally recognized esports organizations in North America. They share the same passion that we have at Champion Teamwear: to support esports athletes worldwide and positively contribute to the rapid growth of an exciting up-and-coming sport. This collaboration allows players and fans to experience high-quality, comfortable Champion® apparel while supporting one of the most exciting teams in the industry.”

In addition to the partnership with the Champion® brand, Enthusiast Gaming has partnered with some of the world’s leading brands including Activision Blizzard, Ubisoft, Foodora, Nintendo, Bell, and Microsoft. As the gaming and esports sector continues to grow, more non-endemic brands are starting to enter the space; as the largest gaming network in the U.S., reaching over 200 million global gamers monthly, Enthusiast Gaming is a leading option for brands looking to reach the gamer demographic.

About Champion 

Since 1919, HBI has offered a full line of innovative athletic apparel for men and women including activewear, sweats, tees, sports bras, team uniforms and accessories under its Champion® brand. HBI uses innovative design and state-of-the-art product testing to ensure uncompromised quality and innovative apparel for our consumers. Champion® athleticwear can be purchased at department stores, sporting goods, specialty retailers, and at Champion.com. For more information, please contact us at 1-800-315-0563 or at Facebook.com/Champion, follow us on Twitter @Championusa or on Instagram @Champion. Champion® is a brand of Hanesbrands Inc. (NYSE:HBI).The Champion® trademarks are owned by HBI Branded Apparel Enterprises LLC a wholly-owned subsidiary of Hanesbrands, Inc.

About Enthusiast Gaming 

Enthusiast Gaming (TSX.V: EGLX)(FSE: 2AV) is building the world’s largest network of communities for gamers and esports fans. Already the largest gaming network in the U.S., the Company’s business is comprised of three main pillars: Media, Events and Esports. Enthusiast Gaming’s digital media platform includes 100+ gaming related websites and 900 YouTube channels which collectively reach 150 million visitors monthly. The media network generates over 30 billion ad requests and over 1 billion page views per month. Enthusiast’s esports division, Luminosity Gaming, is a leading global esports franchise that consists of 7 professional esports teams under ownership and management, including  the Vancouver Titans Overwatch team and the Seattle-based Call of Duty team. Collectively, the integrated ecosystem reaches over 200 million gaming enthusiasts on a monthly basis. Enthusiast Gaming’s event business, owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.com) with approximately 55,000 people attending in 2018. For more information on the Company, visit www.enthusiastgaming.com. For more information on Luminosity Gaming, please visit luminosity.gg

CONTACT INFORMATION:

Investor Relations: 

Julia Becker
Head of Investor Relations & Marketing
[email protected]
(604) 785.0850 

Forward-Looking Information
Certain statements in this release are forward-looking statements.  Forward looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future.  Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including risks related to factors beyond the control of Enthusiast Gaming.  The risks include risks that are customary to transactions of this nature and customary to companies which have their stock traded on the TSXV. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Enthusiast Gaming will obtain from them. 

This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
 
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SPONSOR: Enthusiast Gaming Holdings Inc. (TSX-V: EGLX) Uniting gaming communities with 85 owned and affiliated websites, currently reaching over 150 million monthly visitors. The company exceeded 2018 target with $11.0 million in revenue. Learn More

Can Investors Get a Piece of the Esports Action?

There’s huge potential in this subsection of the video game world.

Motley Fool Staff

If you’re looking for an industry with a ton of rapid growth behind it and plenty of room for more ahead, you could do worse than to consider video games. The amount of time we spend on them is increasing at a ridiculous clip, as is the amount of money, and the global trends appear promising, which adds up to an opportunity for investors. If you don’t feel ready to take advantage, Motley Fool Answers co-hosts Robert Brokamp and Alison Southwick want to help.

For this podcast, they’ve invited senior analyst Jason Moser back into the studio, this time to talk about the current situation in the world of video games and esports from an investor’s perspective: which companies look strongest, how this particular business might move the needle for some more diversified companies, and more. In this segment, they focus specifically on the world of esports. So if you can’t quite imagine how watching other people play video games could evolve into the next breakout spectator sport, allow them to walk you through it.

To catch full episodes of all The Motley Fool’s free podcasts, check out our podcast center.

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Source: https://www.fool.com/investing/2019/10/16/can-investors-get-a-piece-of-the-esports-action.aspx