We believe investors are betting that esports organizations are going to grow like tech companies, not sports teams.
Esports Teams: Valued as Tech Companies
Josh Chapman
2802

Loved the article! Not sure if you’re jumping into this conclusion too quickly though. The reason being that traditional sports franchises monetize their fans incredibly better. The Average Revenue per Fan (or “User”) is higher in the traditional sports world — particularly, if I’m not mistaken, when it comes to media rights. So my thought was, actually, if esports organizations will soon need to justify their high valuations (which, I agree, they will have to) then they need to become even more like traditional sports franchises? Meaning, they need to get way higher media rights and merchandising revenues. One way to do this? Build much stronger relationships between their fans/viewers and the pro players. Case in point: if you live in LA, you can probably name the typical Lakers starting 5 (and you definitely know LeBron James); but I am pretty sure you can’t even name one player in any of the LA teams on Overwatch League.