Page 47 - Forbes Magazine-September 30, 2018

Technology ESPORTS

“I want TSM to be a household brand; I want
us to be the Dallas Cowboys and the Yankees,”
says the perpetually kinetic 26-year-old, who was
featured on Forbes’ 30 Under 30 list in 2017. “It’s
not enough for me just to be successful in North
America.”
Esport companies like TSM field competitive
teams in video games that are as fun to watch—
whether live in a stadium or online on a game-
streaming service like Amazon’s Twitch—as they are
to play. The basic premise of League of Legends has
two teams of five at opposite ends of an intricate map
trying to destroy each other’s bases. Throughout a
match, typically 30 to 40 minutes, players kill mon-
sters (and, of course, opposing players) to earn gold
and “experience” to buy new upgrades and become
stronger than their opponent.
Billionaire owners of professional sports teams
such as Robert Kraft (of the New England Patri-
ots) and Jerry Jones (Dallas Cowboys) are among
the most significant new owners in esports. Be-
cause they own (or operate) venues where esports
competitions can be held, these moguls have a
front-row seat to the industry’s explosive growth,
A Really Big Score and they are spending millions in hopes of build-
ing franchises as big as TSM.
Worldwide, the esports industry is project-
Andy Dinh made his bones as the Derek Jeter of esports. ed to reap nearly $1 billion in revenue this year
Now the 26-year-old gaming legend owns one of the and is building an ever-growing global viewer-
world’s most successful teams. But can he continue to ship. That’s nothing compared with NFL foot-
dominate as billionaire moguls enter the arena? ball ($13.2 billion in 2016), but it is rivaling sec-
ond-tier sports like Major League Soccer ($644
BY MATT PEREZ million in 2016). ESPN has been broadcasting
esports for several years, and last year’s League of
housands of screaming fans packed the Legends World Championship final had an on-
stands and floor space at Boston’s TD line viewership of 57.6 million—about half of last
Garden in September 2017—to watch year’s Super Bowl TV audience. Major brands
Ta video game championship. At Center are also spending millions to get in front of this
Court was an elevated stage with ten computers young and rabid male audience. Video gaming
running the competitive game League of Leg- might even be an Olympic sport someday soon.
ends. Four massive screens were mounted above League of Legends has already taken the first step,
to display the action. When confetti finally rained appearing as a demonstration event at the 2018
down on the crowd, the threepeating champs Asian Games.
jumped around between smoke machines as The concept of revenue sharing, particularly of
a familiar chant broke out—“T-S-M! T-S-M! broadcast income, among teams—common in tra-
T-S-M!”—much like Alabama fans cheer “S-E-C! ditional sports leagues—is still in its infancy in
S-E-C! S-E-C!” in Tuscaloosa. esports, so sponsorships dominate the space. The
TSM—short for Team SoloMid—is one of the Amsterdam-based market researcher Newzoo es-
Trophy life: TSM
founder Andy most recognizable brands in esports, and its vic- timates that 40% of overall revenue this year will
Dinh with the 2017 tory in Boston built on its success as the win- come from sponsorship deals. Some brands part-
League of Legends
North American ningest North American team in League of Leg- ner with the league and tournament organizers,
championship ends, competitive gaming’s top title. But its while others invest on the team side. TSM features
hardware. He used
to give $20-an-hour founder, CEO and owner, Andy Dinh, who Geico and Gillette on its jersey, creates “Team Soda
gaming lessons to emerged from the sidelines to hug his players Mid” commercials with Dr Pepper and uses Logi- ETHAN PINES FOR FORBES
Steve Arhancet, now
co-CEO of rival Team onstage, had only one thought after the team’s tech keyboards and mice during competitions.
Liquid. sixth championship: What’s next? The paucity of reliable ROI metrics have led

48 | FORBES SEPTEMBER 30, 2018