Connect with us

General

Takaze’s Take: The Rise of American Esports—and the Fall of the NCAA

In this article, Takaze discusses the NCAA’s legal challenges. The future of Division I sports, and the future of American esports.

Published

on

The Rise of American Esports—and the Fall of the NCAA

The University of Arizona recently announced that its esports program has been de-funded.[1] The esports program “can no longer continue without the additional funding and has lost its varsity status.”[2] There are three categories of collegiate esports programs: Varsity, Non-Varsity, and Club.[3] Varsity esports programs are led by directors, and their success is “based on recruitment and competitive placement.”[4]

“40% of esports programs live under the athletics department.”[5]

Non-Varsity esports programs are led by directors, and their success is “based on recruitment and on-campus student engagement.”[6] “60% of esports programs are housed outside of athletics.”[7] Esports Clubs are led by students, and their success is “based on community development and student leadership.”[8]

Esports are not the only programs struggling.[9] In fact, athletic “departments around the country are struggling to generate revenues capable of offsetting runaway expenses. Inflation, NCAA deregulation, and COVID-related loan obligations have all driven up the cost of operation in recent years.”[10]

‘The cost to colleges and universities in student-athlete recruitment and acquisition is higher than it’s ever been. Then you add deregulation, more liberal transfer guidelines and chaos in NIL, it makes these commitments more like a series of one-year contracts.’[11] ‘Then you face the cost to retain student-athletes including developing deep NIL resources, and making massive experience investments which is another challenge entirely.’[12] “College sports insiders estimate that ~75% of Division I athletic departments now rely on some form of institutional support, with some receiving tens of millions in subsidies annually.”[13]

Takaze’s Take

The NCAA is experiencing death by a thousand cuts. We ought to be cheering. Once the Death Star is destroyed, the New Republic can usher in a just regime. We prefer to cover up or deny our institutions’ transgressions in America. If America does take action to correct wrongdoing, it is half-measures.[14] The term “student-athlete” is derogatory. The NCAA has used this term to justify their misconduct.[15]

Supporters of the term student-athlete should be considered bigots. The athletes in the top tier of Division I collegiate athletics are professionals. Denying these are professional leagues because of the athlete’s age is asinine. In America, age doesn’t determine whether an athlete is a professional. The United States has no issue sending young women to compete in the Olympics.[16] Anyone opposed to Division I athletes earning salaries that accurately reflect the value of their abilities must self-reflect. What emotions are you feeling?

Advertisement

Old Men Yelling at Clouds

Nick Saban’s comments about NIL have garnered a lot of attention. Recently, he said it’s “fantastic that players get to make money now. But every single coach, in every single revenue sport, if you’re paying attention, is saying the same thing. This is the only thing that any recruit is asking about now when they come on visits. And I don’t believe it’s pearl-clutching to wonder if maybe that’s not ideal.

Maybe something about the school and your development there as a human being oughta comment on your process there and your line of thinking because overwhelmingly those athletes are going to have to find a job that isn’t football when they leave.”[17] Given that these athletes are being asked to play professional sports without receiving a salary, no coach should be surprised that athletes want to maximize the area they can profit from. The universities should not be the only party that profits.[18]

 Saban isn’t the only noteworthy individual upset about these professional athletes demanding fair wages. Senator Tommy Tuberville is outraged as well. Senator Tuberville said, “the last time I looked, they’re not employees. These students are student-athletes… Coaches right now have a little bit of control of the football team or the basketball team or gymnastics… Problem is [if] unions get involved, they will go on strike before a championship game. They will hold hostage the people that are paying the bills.”[19]

Senator Tuberville’s comments are absurd. Senator Tuberville’s words are belittling and condescending. However, his position is understandable. Right now, everybody in the equation wins except for the athlete.[20] Treating these professional athletes fairly is terrible for business. The NCAA and the Universities are in complete control. If these professional athletes don’t toe the line, the NCAA and/or the University can crush them.[21] It’s a sweet deal for the NCAA and the Universities. Senator Tuberville is right; these professional athletes are “going to kill the goose that laid the golden egg.”[22]

Stay In Your Lane

A University cannot manage a professional sports team. There has been significant discussion of Title IX’s impact on NIL and athlete pay. “Title IX prohibits sex discrimination at educational institutions that receive federal money. It plays an instrumental role in college sports. Among other effects, Title IX requires that athletic departments provide equitable treatment to men and women athletes.”[23]

Advertisement

The expectation is colleges “that pay football and/or men’s basketball players but not other athletes [will] undoubtedly face Title IX litigation. They might also face claims under the Equal Pay Act and Title IX of the Civil Rights Act, laws that prohibit sex discrimination in compensation and employment.”[24] The NCAA is scrambling to find ways to compensate women’s basketball programs.[25] The NCAA needed five years to name a partner for the NIL Registry.[26] Why should we ask these young women to wait for whatever half-baked plan the NCAA unveils?[27] The NCAA is not taking action to right a wrong. The NCAA recognizes that their chickens have come home to roost.

Thanos Warned Us

Pay-for-play is inevitable. Scholarships are no longer the be-all and end-all. “At many programs, players are receiving NIL as a way of going above the NCAA scholarship limit of 85 per team. It’s a way to have a deeper roster and keep veteran players around.”[28] The performance of these professional athletes is worth more than what the university bills for a semester’s or an entire school year’s tuition. A scholarship’s actual value is that of a deal sweetener. The time when a scholarship could be used as a weapon against these professional athletes has passed.[29]

 The NCAA should seek an honorable death. The jig is up. The players are seeking “monetary damages for being denied three things: a share of broadcasting revenue… the opportunity for revenue that would have been possible in college sports video games and NIL opportunities prior to 2021. They also want NCAA rules changed to allow the Power Five to negotiate with players going forward for their appearance in televised game broadcasts and the removal of NIL restrictions related to direct school and conference payments.”[30]

The NCAA is understandably afraid. “The fundamental risk for the NCAA in permitting colleges to make direct NIL payments is the moment one of those payments is exposed as compensation to attend, or not later transfer from, a school. Such a payment wouldn’t be NIL, but instead pay-for-play-a payment the NCAA has long insisted is an anathema to the student-athlete model and a threat to amateurism.”[31] The NCAA’s value was in its ability to restrict profit sharing.

 University Athletic Directors (ADs) appear prepared to sacrifice the NCAA to save themselves. Some ADs believe that the “system is broken, and I don’t know how much more we can break it… This is forcing a traditional model to look outside itself, and that’s a good thing.”[32] Apparently, the NCAA is the only party that cannot see the writing on the wall. Some ADs claim this has “been on our radar for quite a while now…

Advertisement

While the terms haven’t been resolved, or if they will be resolved if this doesn’t go to trial, you think about the changing model of college athletics all the time… [College athletics] is going to look different in three years than it does today, but I don’t think any of us have a clear vision of exactly what that is, other than knowing that times are changing.

A lot of colleagues can complain about that, but at the same time, it’s exciting too. It’s an opportunity to be part of the new world of college athletics when it arrives.”[33] The NCAA is outmanned and outgunned.[34] Professional athletes are asserting their rights. Universities have abandoned the NCAA. Now, Uncle Sam has added himself to the NCAA’s dance card.[35] The Federal Trade Commission has forbidden the use of noncompete clauses.[36] The IRS is targeting NIL collectives.[37] The NCAA has mistaken NIL as its safety net. NIL is the harbinger of death.

Ready to Form Voltron?

Conflict is essential to bring about change.[38] The public execution of the NCAA is good for the sports world. Charlotte and Stephen Jones of the Dallas Cowboys recently reminded us that asserting your rights is good for business.[39] How much longer will the Power 4 Conferences exist? The Pac-12 was hunted until it became an endangered species.[40] The ACC is on the verge of imploding.[41] The B1G and the SEC are not devoted to the College Football Playoff (CFP).[42] So, who has next?

 In the football world. The College and professional games have increasing commonalities. On the field, Helmut communication and the 2-minute warning have arrived.[43] Regarding business transactions, players have essentially been granted free agency.[44] Furthermore, NIL opportunities allow players to delay declaring for the NFL draft.[45] Some believe the Power 4 conferences must break up with the NCAA.[46] The College football “Super League” is generating considerable attention.[47]

There would be eight divisions, and the “seven permanent 10-team “Super League” divisions consist of every Power Five school plus Notre Dame, and are organized geographically: west, southwest, plains, Midwest, northeast, south and southeast. In large part, the effort appears to preserve or reunite historic rivalries, a number of which have been shattered by conference realignment.”[48] Is an eighty-team “Super League” the same show with a different title? Will a committee determine which teams earn postseason berths instead of wins, losses, and tiebreakers? Hopefully, the goal was to suggest something silly to ensure consumers pay attention to detail.

Advertisement

 Some believe that

“a distinct separation of NCAA Division I college football by a minimum overall program/athletic budget needs to happen. In other words, it is not the have and have-nots. It is the have and never-will-be’s, and nothing will really change that simply because of financial efficacy. It does not make financial or competitive sense for many schools… to play in a sandbox where they cannot compete.”[49]

Let this be the moment when Americans stop embracing half-measures. The top tier of Division I sports are professional leagues. At best, seven to ten football teams can win a title in Division I. Perhaps there will be more parity after the league is reborn. Take the top 30-32 teams and establish a formal professional league. Division I professional sports are the only major American sports leagues with over 40 teams.

Implementing a system of promotion and relegation will create suspense and generate excitement. Embracing a system of promotion and relegation forces programs to prove they belong in the top tier and silences critics.[50] Determining who belongs in the sandbox is best done on the field, not in meeting rooms. Players can unionize once a formal professional league is created, and collective bargaining can begin. The NFLPA, NBPA, and WNBPA can assist or house the newly formed unions. Finding owners for these new teams will not be difficult.[51]

 The universities will get their piece of the pie. Stadiums and arenas can be leased.[52] The narrative surrounding public funding for stadiums and arenas is changing. “The battle for public funding is highly competitive and the tendency historically has been for municipalities to allocate those dollars to “more visible” stadia… Tier two and three properties, and minor league organizations, particularly those in secondary markets, have gotten overlooked. But that mentality is starting to change.

Broad demand for live entertainment nationwide, and an influx of smart money into these teams… has brought on a newfound willingness amongst elected officials to allocate public dollars.”[53] Elected officials’ support for funding stadium projects is not intrinsically evil. “Taxpayer support of sports isn’t inherently bad: Fair and thoughtful deals between cities and teams can result in situations where the public sees a return on their investment.”[54] The universities’ logos and jerseys can be licensed.[55] Let’s do this right—no need to cut corners.

Advertisement

Trust The Silver Surfer

NBA Commissioner Adam Silver can be trusted with the fate of the basketball world. Silver’s handling of NBA business issues has been masterful.[56] For those wondering what March Madness would be like without the NCAA, some believe there would be little change. “The players would still play for their teams, fans would still watch, and non-fans would fill out brackets for their office pools. The difference would be found off the court. Players would be paid for their labor and the use of their name, image, and likeness on broadcasts, merchandise, and apparel…

TV networks, sneaker companies, and other businesses that profit from the tournaments would have to share in the money, just like they share with the NBA and WNBA players through group licensing.”[57] Silver is undoubtedly lined up, waiting for the swell. The author believes the top 30-32 Division I basketball teams should establish a formal professional league. Moreover, the author insists implementing a system of promotion and relegation will create suspense and generate excitement.

Betting companies will argue that Cinderella and a large postseason tournament are essential. However, the NBA isn’t a stranger to this space.[58] The NBA is considering expanding into Europe.[59] Hopefully, the entire universe acknowledges that basketball’s future is brightest under the Surfer’s stewardship.

Are The Stars Aligning?

The streaming wars are being waged in the sports world.[60] The framework for sports media rights deals is evolving; this is the perfect time for a revolution. “The NBA is ‘seeking a new decade-long – or longer’ – media rights contracts that will ‘alter how it traditionally delivers games, with streaming becoming the principal distribution method.’”[61] The NBA has the framework for a deal with Prime Video.[62]

The NBA’s commitment to streaming is forcing companies to adapt-or-die.[63] The NBA is head-and-shoulders above the other major American sports leagues in terms of progressive thinking and business savvy.[64] “Remember, the beauty of streaming is that the platforms have the capability to capture more about who is engaging with the content, and how they’re doing it.”[65] The sports world is metamorphosizing; lean in.

Advertisement

A Phoenix Rising From The Ashes

“Esports is growing across the Globe. Mature markets like North America and Western Europe are continuing to grow. However, over the last year, audience numbers were most affected by growth markets in the Middle East, Africa, Asia-Pacific, and Latin America.”[66] Despite the NCAA’s distasteful business practices, esports have succeeded in North America. “Schools are mostly trying to make revenue through esports by increasing enrollment. If your cost of attendance is USD 35,000 or USD 40,000 per student, and you only have to invest maybe USD 5,000 or USD 10,000 per student for the esports program, then that could be a revenue generator.”[67]

The demise of the NCAA is the salvation the esports world has been praying for. The NBA is active in this space.[68] The Surfer is ready to strike. The NBA’s ability to take over the space will bring suitors to compete with the Saudis. [69] Once the NFL catches up to the NBA, esports will have the momentum it needs to become an Olympic sport.[70] Madden tournaments are 1 v. 1.[71]

The author is unsure if 11 v. 11 matches are feasible; nevertheless, 7 v. 7 matches are. Ideally, the NFL will recognize the value of establishing a league like the NBA’s 2k League. Investing in Madden and Flag Football will assist the NFL in achieving its international ambitions. We have to do this, and we should want to—let the NCAA burn.


[1] Emma LaPointe, University of Arizona Cuts Funding to Esports Program, THE DAILY WILDCAT (Apr. 1, 2024), https://wildcat.arizona.edu/154624/news/university-of-arizona-cuts-funding-to-esports-program/.

[2] Id.

Advertisement

[3] Chris Postell & Kris Narayan, Trends in Collegiate Esports Report Lite, 10 (4th ed. 2024).

[4] Id.

[5] Id.

[6] Id.

[7] Id.

Advertisement

[8] Id.

[9] JohnWallStreet, College Sports’ Rising Costs Becoming Institutional Level Problem, JohnWallStreet (Jan. 23, 2024), https://blog.johnwallstreet.com/p/college-sports-rising-costs-becoming-institutional-level-problem.

[10] Id.

[11] Id.

[12] Id.

Advertisement

[13] Id.

[14] See Jack N. Rakove, Original Meanings (1997); Angela Y. Davis, Freedom Is A Constant Struggle (2016); Mary L. Dudziak, Cold War Civil Rights (2011); Risa L. Goluboff, The Lost Promise of Civil Rights (2007).

[15] See Josh Eidelson, NCAA Abuses ‘Student-Athlete’ Term to Deny Rights, NLRB Alleges, Bloomberg Law (Dec. 18, 2023, 4:47 PM), https://news.bloomberglaw.com/daily-labor-report/ncaa-abuses-student-athlete-term-to-deny-rights-nlrb-alleges.

[16] Nick Zaccardi, Olympic Women’s Gymnastics Median Age in 20s for First Time in Decades, NBC Sports (July 14, 2021, 4:42 AM), https://www.nbcsports.com/olympics/news/olympic-gymnastics-average-age; See Louise Radnofsky, U.S. to Pay Victims of Larry Nassar $100 Million Over FBI Failures, The Wall Street Journal (Apr. 17, 2024, 12:15 PM),  https://www.wsj.com/sports/olympics/larry-nassar-fbi-failures-18067a65?st=3hjy9s61m3wicmt; See also Juliet Macur, U.S. Rowing Rescinds Ted Nash’s Honors After Abuse Investigation, The New York Times (Apr. 30, 2024, 6:20 PM),  https://www.nytimes.com/2024/04/30/us/ted-nash-jennifer-fox-abuse-investigation.html?smid=nytcore-ios-share&referringSource=articleShare&sgrp=c-cb.

[17] Seth Emerson, What Nick Saban is Wrong, and Right, About in NIL Debate, The Athletic (Mar. 13, 2024), https://theathletic.com/5339689/2024/03/13/nick-saban-nil-college-sports-congress/.

Advertisement

[18] Cork Gaines, The 23 Universities That Make At Least $125 Million Annually From Their Sports Teams, Business Insider (Jan. 25, 2024, 4:56 AM), https://www.businessinsider.com/college-sports-revenue-ncaa-ohio-state-buckeyes-texas-football-2024-1; See also NCAA Finances: Revenue and Expenses by School, USA Today (Mar. 14, 2024, 10:05 AM), https://sports.usatoday.com/ncaa/finances.

[19] Daniel Libit, Tuberville Says Dartmouth Union Will Kill NCAA ‘Golden Goose’, Sportico (Mar. 6, 2024, 6:00 PM), https://www.sportico.com/leagues/college-sports/2024/tuberville-dartmouth-union-vote-1234769673/.

[20] See Eben Novy-Williams & Brendan Coffey, Auburn’s Under Armour Stock Deal Fell By $8.6M. Now It’s a Nike School, Sportico (Apr. 9, 2024, 2:00 PM), https://www.sportico.com/business/commerce/2024/auburn-nike-under-armour-equity-1234774545/; Timothy Rapp, Colorado Sees Record-Breaking Application Numbers After Deion Sanders’ 1st Year as HC, Bleacher Report (Mar. 9, 2024), https://bleacherreport.com/articles/10112333-colorado-sees-record-breaking-application-numbers-after-deion-sanders-1st-year-as-hc#.

[21] Michael McCann, Threat to Strip LSU Athletic Scholarships Raises Legal Questions, Sportico (Apr. 3, 2024, 10:10 AM), https://www.sportico.com/law/analysis/2024/louisiana-governor-threatens-athletic-scholarships-anthem-skip-legal-questions-1234773631/.

[22] See supra note 19; See also Labor Cases at Dartmouth, USC Start of Larger Dispute Over Athletes’ Employment Status, Sports Business Journal (Mar. 19, 2024), https://www.sportsbusinessjournal.com/Articles/2024/03/19/college-labor-cases?hl=labor+cases+at+Dartmouth&sc=0&publicationSource=search; David Cobb, Reggie Bush’s 2005 Heisman Trophy Reinstated as Former USC Trojans Star Wins Long Battle, CBS Sports (Apr. 24, 2024, 11:17 AM), https://www.cbssports.com/college-football/news/reggie-bushs-2005-heisman-trophy-reinstated-as-former-usc-trojans-star-wins-long-battle/.

Advertisement

[23] Michael McCann, Biden’s Title IX Rule Lands as NCAA Athletes Gain NIL, Employee Rights, Sportico (Apr. 22, 2024, 5:55 AM), https://www.sportico.com/law/analysis/2024/biden-title-ix-regulations-nil-employee-1234776305/.

[24] Id. See Daniel Libit, Oregon Denies ‘Any Control’ Over Nil Collective In Title IX Defense, Sportico (Mar. 5, 2024, 9:00 AM), https://www.sportico.com/leagues/college-sports/2024/oregon-title-ix-defense-division-street-nil-phil-knight-1234769273/; See also Daniel Libit, Oregon, Division Street Play for Kicks Amid Title IX Nil Litigation, Sportico (Mar. 29, 2024, 8:00 AM), https://www.sportico.com/leagues/college-sports/2024/oregon-division-street-shoe-partnership-title-ix-nil-litigation-1234772918/.

[25] Andrea Adelson, NCAA Mulls Ways for Women’s Basketball Teams to ‘benefit financially’, ESPN (Apr. 7, 2024, 4:34 PM), https://www.espn.com/womens-college-basketball/story/_/id/39895247/ncaa-mulls-ways-women-teams-benefit-financially.

[26] Daniel Libit & Eben Novy-Williams, NCAA Names NIL Registry Partner After Five-Year Process, Sportico (Apr. 25, 2024, 3:53 PM), https://www.sportico.com/leagues/college-sports/2024/ncaa-nil-registry-administrator-teamworks-1234776842/.

[27] See Biden: ‘Even if You’re the Best, Women Are Not Paid Their Fair Share’ in Sports, Sports Business Journal (Apr. 17, 2024), https://www.sportico.com/leagues/college-sports/2024/ncaa-nil-registry-administrator-teamworks-1234776842/; Lindsay Crouse, Even Clarkenomics Can’t Solve Sexism in Sports, The New York Times (Apr. 18, 2024, 1:38 PM), https://www.nytimes.com/live/2024/04/16/opinion/thepoint?searchResultPosition=1#caitlin-clark-salary; Jacob Feldman, After Caitlin Clark, Women’s Sports Fans Are Done Compromising, Sportico (Apr. 16, 2024, 5:55 AM), https://www.nytimes.com/live/2024/04/16/opinion/thepoint?searchResultPosition=1#caitlin-clark-salary.

Advertisement

[28] Austin Meek, Seth Emerson, & Mitch Sherman, In College Football’s NIL and Transfer Portal Era, Does the 85-Scholarship Limit Matter?, The Athletic (Apr. 18, 2024), https://theathletic.com/5424013/2024/04/18/college-football-scholarship-limit-nil-portal/.

[29] See supra note 21.

[30] Michael McCann & Daniel Libit, Athletes’ Motion in NIL Case Pits Baker’s Words Against NCAA, Sportico (Apr. 4, 2024, 12:42 PM), https://www.sportico.com/law/analysis/2024/ncaa-nil-class-action-summary-judgment-1234773887/.

[31] Michael McCann, Direct NIL Payments Could Be Final Nail in Amateurism’s Coffin, Sportico (Apr. 8, 2024, 5:55 AM), https://www.sportico.com/law/analysis/2024/direct-nil-payments-colleges-ncaa-1234774185/.

[32] Ben Portnoy, College Admins Gear Up For Potentially New Budget Lines As House Case Potentially Nears Settlement, Sports Business Journal (Apr. 30, 2024), https://www.sportsbusinessjournal.com/Articles/2024/04/30/house-v-ncaa-settlement-college-administrators-react?hl=College+Admins+gear+up&sc=0&publicationSource=search.

Advertisement

[33] Id.

[34] See Michael McCann, Details Matter: NCAA Settling House and Carter Won’t End Legal Woes, Sportico (Apr. 30, 2024, 7:31 PM), https://www.sportico.com/law/analysis/2024/ncaa-settlements-house-carter-legal-problems-1234777448/.

[35] See Guy Lawson, ‘The Death of College Sports Will Be Fast and Furious:’ The Scandal That Could Kill the NCAA, RollingStone (Mar. 24, 2024), https://www.rollingstone.com/culture/culture-commentary/ncaa-college-sports-corruption-scandal-1234993227/.

[36] Michael McCann, FTC Noncompete Ban Looms Over Sports Execs, Coaches, NIL, Sportico (Apr. 23, 2024, 8:26 PM), https://www.sportico.com/law/analysis/2024/ftc-bans-noncompetes-sports-implications-1234776614/.

[37] Daniel Libit, IRS Letter an ‘Indictment’ of NIL Collectives’ Exempt Status, Sportico (Apr. 6, 2024, 3:43 PM), https://www.sportico.com/law/analysis/2024/ftc-bans-noncompetes-sports-implications-1234776614/.

Advertisement

[38] See Kathy Miller Perkins, Creative Conflict: Tips for Change Leaders, Forbes (Sept. 18, 2023, 7:33 PM), https://www.forbes.com/sites/kathymillerperkins/2023/09/18/embrace-constructive-conflict-tips-for-change-makers/?sh=13737461755f. See also Bernard Mayer, Staying With Conflict (1st ed. 2009); Bernard Mayer, The Dynamics of Conflict (2nd ed. 2012); Bernard Mayer, The Conflict Paradox (1st ed. 2015).

[39] Eric Jackson, We Sued the League for $700M: How the Cowboys Reshaped the NFL, Sportico (Mar. 11, 2024, 6:14 PM), https://www.sportico.com/leagues/football/2024/we-sued-the-league-for-700m-how-dallas-cowboys-reshaped-the-nfl-1234770381/.

[40] See OSU, WSU Finalize Financial Settlement With Departing Pac-12 Schools, Sports Business Journal (Mar. 26, 2024),https://www.sportsbusinessjournal.com/Articles/2024/03/26/pac-12-financial-agreement?hl=Pac-12&sc=0&publicationSource=search.

[41] Amanda Christovich, Everything You Need to Know About the Legal Attempts to Kill the ACC, Front Office Sports (Apr. 21, 2024, 11:39 AM), https://frontofficesports.com/everything-you-need-to-know-about-the-legal-attempts-to-kill-the-acc/; Eben Novy-Williams, FSU Seminoles Eye $327M From Revenue Bonds Amid ACC Fight, Sportico (May 4, 2024, 5:12 PM), https://www.sportico.com/business/finance/2024/fsu-athletics-bonds-seminoles-acc-fight-1234777813/.

[42] See Ben Portnoy, Same Network, New Questions As ESPN Extends College Football Playoff Deal, Sports Business Journal (Mar. 25, 2024), https://www.sportsbusinessjournal.com/Articles/2024/03/25/college-football-playoff?hl=college+football+playoff&sc=0&publicationSource=search; Doric Sam, SEC, Big Ten Would’ve Left CFP If New Contract Wasn’t Reached, Say Sankey and Petitti, Bleacher Report (Apr. 22, 2024), https://bleacherreport.com/articles/10118001-sec-big-ten-wouldve-left-cfp-if-new-contract-wasnt-reached-say-sankey-and-petitti#:~:text=SEC%20Football-,SEC%2C%20Big%20Ten%20Would’ve%20Left%20CFP%20If%20New%20Contract,Reached%2C%20Say%20Sankey%20and%20Petitti&text=Prior%20to%20reaching%20an%20agreement,Big%20Ten%20from%20the%20postseason.

Advertisement

[43] Chris Vannini, Helmut Communication, 2-Minute Warning Coming to College Football, The Athletic (Apr. 19, 2024), https://theathletic.com/5424958/2024/04/19/college-football-helmet-communication-2-minute-warning/#.

[44] See Nicole Auerbach, NCAA Changes Transfer Rules, Formalizing Era of Immediate Eligibility: How We Got Here, The Athletic (Apr. 16, 2024), https://theathletic.com/5419130/2024/04/16/college-football-transfer-portal-rule-changes/.

[45] See Scott Dochterman, How Name, Image and Likeness is Impacting NFL Draft Decisions: ‘That is Guaranteed Money’, The Athletic (Apr. 19, 2024),  https://theathletic.com/5423892/2024/04/19/nil-college-football-nfl-draft-depth-salaries-contracts/.

[46] See Joe Moglia, The Time Has Come for Power Five Football to Break From NCAA, Sportico (Mar. 27, 2024, 5:55 AM), https://www.sportico.com/leagues/college-sports/2024/time-for-power-conferences-break-from-ncaa-1234772535/.

[47] See Daniel Libit & Eben Novy-Williams, College Football ‘Super League’ Pitch Deck Details Breakaway Plan, Sportico (Apr. 16, 2024, 2:00 PM), https://www.sportico.com/leagues/college-sports/2024/college-football-super-league-pitch-deck-1234775652/; See also Group of Five School Administrators Considering Separate Playoff, Sports Business Journal (Apr. 24, 2024), https://www.sportsbusinessjournal.com/Articles/2024/04/24/college-football-group-of-five-playoff?hl=college+football+playoff&sc=0&publicationSource=search

Advertisement

[48] Id. See also Andrew Marchand & Stewart Mandel, Inside the College Football ‘Super League,’ One Powerful Group’s Idea to Fix a “dead’ System, The Athletic (Apr. 3, 2024), https://theathletic.com/5383639/2024/04/03/college-football-super-league-cst-realignment/.

[49] David Ridpath, Super League Proposal Can Be Giant Step Forward for College Sports, Sportico (Apr. 24, 2024, 8:30 AM), https://theathletic.com/5383639/2024/04/03/college-football-super-league-cst-realignment/.

[50] See Derek Reese, What is Promotion and Relegation?, World Soccer Talk (Apr. 29, 2023), https://worldsoccertalk.com/news/what-is-promotion-and-relegation-20230205-WST-417286.html; How is European Soccer Structured With Leagues and Cup Competitions?, Bundesliga,  https://www.bundesliga.com/en/faq/what-are-the-rules-and-regulations-of-soccer/how-is-european-soccer-structured-with-leagues-and-cup-competitions-10568.

[51] See Tom Lamont, So, You Want to Buy a Pro Sports Team? Here’s How, GQ Sports (Jan. 16, 2024), https://www.gq.com/story/how-to-buy-a-pro-sports-team; Dan Moore, What’s Behind the Exploding Prices of Pro Sports Franchises?, The Ringer (Nov. 28, 2022, 8:28 AM), https://www.theringer.com/sports/2022/11/28/23472636/sports-team-franchise-valuation-sale-prices; See also Brendan Coffey, CVC IPO Offers Glimpse Into Private Equity Giant’s Sports Strategy, Sportico (Apr. 24, 2024, 5:55 AM), https://www.sportico.com/business/finance/2024/cvc-ipo-shows-sports-strategy-1234776582/; Jacob Feldman, Steve Ballmer Announces Halo Sports & Entertainment Portfolio, Sportico (Mar. 7, 2024, 10:00 AM), https://www.sportico.com/leagues/basketball/2024/steve-ballmer-halo-sports-entertainment-portfolio-1234769658/; Kurt Badenhausen, Harris, Blitzer Launch Youth Sports Firm Unrivaled as TCG Invests, Sportico (Mar. 27, 2024, 5:55 AM), https://www.sportico.com/business/commerce/2024/harris-blitzer-youth-sports-unrivaled-tcg-1234772563/.

[52] See Peter A. Carfagna, Negotiating and Drafting Sports Venue Agreements, (2nd ed. 2016).

Advertisement

[53] JohnWallStreet, Secondary, Tertiary Markets Investing Billions in Stadium Construction Projects, JohnWallStreet (Apr. 9, 2024), https://blog.johnwallstreet.com/p/secondary-tertiary-markets-investing-billions-in-stadium-construction-projects; See also Andy Peters, Colleges Race to Build Athletic Training Facilities and Expand Stadiums, CoStar News (Aug. 28, 2023, 6:16 PM),  https://www.costar.com/article/1700575423/colleges-race-to-build-athletic-training-facilities-and-expand-stadiums.

[54] Brendan Coffey, How American Taxpayers Support Sports Teams and Athletes, Sportico (Apr. 17, 2024, 8:00AM), https://www.sportico.com/business/finance/2024/how-american-taxpayers-support-sports-1234775732/.

[55] See Frequently Asked Questions (FAQ), Purdue University, https://www.purdue.edu/trademarks-licensing/faq.php.

[56] See Eben Novy-Williams, Disputed T-Wolves Sale May Force NBA Rule Change, Silver Says, Sportico (Apr. 10, 2024, 4:58 PM), https://www.sportico.com/business/team-sales/2024/nba-adam-silver-timberwolves-sale-arod-lore-glen-taylor-1234774828/; Lev Akabas, NBA’s Load Management Policy Reduced Missed Games by Stars, Sportico (Apr. 16, 2024, 12:00 PM), https://www.sportico.com/leagues/basketball/2024/nba-awards-load-management-adam-silver-1234775529/.

[57] Michael McCann, The Last Dance of ‘Amateur’ March Madness, Sportico (Mar. 18, 2024, 5:55 AM), https://www.sportico.com/law/analysis/2024/march-madness-the-last-dance-1234771163/; The College Basketball Crown is the new tournament in town. See Eric Fisher, Fox Adds to Jumbled College Hoops Postseason with New Tournament, Front Office Sports (Apr. 3, 2024, 6:08 PM), https://frontofficesports.com/fox-adds-to-jumbled-college-hoops-postseason-with-new-tournament/.

Advertisement

[58] Jacob Feldman, NBA G League Team Ignite Shuts Down Amid NIL Changes, Sportico (Mar. 18, 2024, 12:00 PM), https://www.sportico.com/leagues/basketball/2024/nba-g-league-ignite-future-nil-recruits-1234771262/.

[59] Kurt Badenhausen, NBA Explores Europe Options, Including Launch of New League, Sportico (Mar. 11, 2024, 5:55 AM), https://www.sportico.com/leagues/basketball/2024/nba-europe-new-league-euroleague-1234770112/.

[60] See Michael McCann, ESPN, FUBO Push Dueling Arguments In Streaming Antitrust Case, Sportico (Apr. 11, 2024, 7:37 AM), https://www.sportico.com/law/analysis/2024/espn-fubo-antitrust-lawsuit-1234774891/; Brendan Coffey, FUBO CEO Says TV FEE ‘Bullying Has Got To Stop’, Sportico (Mar. 6, 2024, 5:55 AM), https://www.sportico.com/business/finance/2024/fubo-david-gandler-sports-tv-bullying-1234769411/; See also JohnWallStreet, ESPN, FOX, WBD Product Just Another Virtual in Crowded Entertainment Marketplace, JohnWallStreet (Feb. 14, 2024), https://blog.johnwallstreet.com/p/espn-fox-wbd-jv-just-another-virtual-in-crowded-entertainment-marketplace; JohnWallStreet, Local Influencers, Content Creators Now Necessary Part of Sports Media Ecosystem, JohnWallStreet (Apr. 2, 2024), https://blog.johnwallstreet.com/p/local-influencers-content-creators-now-necessary-part-of-sports-media-ecosystem.

[61] Report: NBA Looking to Alter How it Delivers Games in New Media Deals, Sports Business Journal (Apr. 22, 2024), https://www.sportsbusinessjournal.com/Articles/2024/04/22/nba-new-media-rights-plans?hl=Report%3a+NBA+looking+to+alter+how+it+delivers&sc=0&publicationSource=search.

[62] Andrew Marchand, Amazon Prime Has Framework Deal for NBA Broadcast Rights, Per Sources, Putting Pressure on TNT, NBC, The Athletic (Apr. 26, 2024), https://theathletic.com/5450064/2024/04/26/nba-broadcasting-rights-amazon-prime-video/.

Advertisement

[63] See Anthony Crupi, WBD Preps NBA Counteroffer As Sir Charles’ Waiting Game Continues, Sportico (May 3, 2024, 5:21 PM), https://www.sportico.com/business/media/2024/charles-barkley-tnt-wbd-preps-nba-counteroffer-rights-deal-1234777749/; Anthony Crupi, NBA Rights Renewal Race Could Pose Existential Threat to WBD, Sportico (Apr. 30, 2024, 4:59 PM), https://www.sportico.com/business/media/2024/nba-rights-renewal-race-warner-bros-discovery-existential-threat-1234777393/.

[64] See Eben Novy-Williams, NBA, WNBA Media Rights Better Off Sold Together: Adam Silver, Sportico (Apr. 11, 2024, 12:22 PM), https://www.sportico.com/business/media/2024/nba-wnba-media-rights-sold-together-separate-1234774937/. See also Anthony Crupi, NFL’s Rolapp Stands by TV in Face of Streaming Questions, Sportico (Mar. 21, 2024, 3:01 PM), https://www.sportico.com/business/media/2024/nfl-brian-rolapp-tv-streaming-super-bowl-1234771936/; Anthony Crupi, NFL Helps Peacock Book $1.1 Billion While Streamer’s Losses Narrow, Sportico (Apr. 25, 2024, 11:34 AM), https://www.sportico.com/business/media/2024/peacock-revenue-1-billion-nfl-wild-card-game-1234776809/; Dylan Manfre, Want A Day Off After the Super Bowl? So Does Roger Goodell, Sportico (Apr. 26, 2024, 4:09 PM), https://www.sportico.com/leagues/football/2024/roger-goodell-super-bowl-schedule-change-nfl-1234776986/; Brendan Coffey, NFL Teams Take Advantage of New Debt Limits, Float $1.5B in Loans, Sportico (Mar. 28, 2024, 6:38 PM), https://www.sportico.com/leagues/football/2024/nfl-debt-fitch-ratings-1234772992/.

[65] JohnWallStreet, Cord Cutting Could Be The Best Thing To Happen To Pro Leagues, JohnWallStreet (Apr. 23, 2024), https://blog.johnwallstreet.com/p/cord-cutting-could-be-best-thing-to-happen-to-pro-leagues.

[66] Werner Geyser, The Incredible Growth of eSports [+ eSports Statistics], Influencer Marketing Hub (Jan. 30, 2024), https://influencermarketinghub.com/esports-stats/.

[67] Adam Stone, Maximizing ROI: Lessons from Collegiate Esports Investments, EdTech (Feb. 23, 2022), https://edtechmagazine.com/higher/article/2022/02/maximizing-roi-lessons-collegiate-esports-investments#:~:text=Schools%20are%20mostly%20trying%20to,could%20be%20a%20revenue%20generator..

Advertisement

[68] See League Info, NBA 2k League https://2kleague.nba.com/league-info/.

[69] See Kevin Hitt, How Can Saudi Money Help Stabilize, Grow Esports over the Long Term?, Sports Business Journal (Apr. 4, 2024),   https://www.sportsbusinessjournal.com/Articles/2024/04/04/saudi-esports?hl=how+can+Saudi+money+help+stabilize%2c+grow+esports&sc=0&publicationSource=search.

[70] See Flag Football, International Olympic Committee https://olympics.com/en/sports/flag-football/; Jason Wilson, NFL Sees 2k Playmakers As Both A Second-Screen Experience, Year-Round Engagement Tool, Sports Business Journal (Apr. 25, 2024), https://www.sportsbusinessjournal.com/Articles/2024/04/25/nfl-sees-2k-playmakers-as-second-screen-experience-and-engagement-tool?hl=NFL+sees+2k+players+as+both&sc=0&publicationSource=search.

[71] Official Rules, Madden Championship Series https://www.ea.com/games/madden-nfl/madden-nfl-24/compete/official-rules.

Advertisement

Author

  • Takaze A. Turner

    Takaze A. Turner, a distinguished figure at the intersection of entertainment and law, showcases a profound passion for anime, cinema, and gaming. His academic journey commenced at the Ohio State University, where he excelled in English, earning his degree with cum laude honors. Furthering his legal education, Takaze achieved his Juris Doctor from the University of Missouri School of Law, before embarking on specialized legal studies. He has since attained an LL.M. in Business Law from Florida State University College of Law and an LL.M. in Entertainment Law from the University of Miami School of Law. Currently, he is enhancing his expertise by pursuing an LL.M. in Taxation Law at the same institution. Takaze’s multifaceted legal education, coupled with his deep-rooted interests in entertainment, positions him uniquely within the legal landscape. His academic accomplishments reflect a dedicated pursuit of knowledge across various sectors of law, particularly those intersecting with the business and entertainment industries. At the core of his professional journey is a commitment to understanding and navigating the complex legalities surrounding entertainment and media, ensuring he remains a pivotal figure in legal discussions related to these dynamic fields. His ongoing pursuit of an LL.M. in Taxation Law further exemplifies his dedication to broadening his legal acumen, underscoring his role as a key contributor to the legal community, especially in areas where law meets entertainment and technology. View all posts

General

Tencent’s Light of Motiram – Innovation or Imitation?

Published

on

The line between inspiration and imitation in the gaming industry has again sparked debate, this time involving Tencent’s title, Light of Motiram, and Sony’s Horizon Zero Dawn. The controversy highlights the ongoing tension in intellectual property (IP) law within gaming, echoing past cases like Palworld vs. Pokémon. Here, we explore these issues, their legal implications, and what they mean for the future of game development.


The Allegations Against Light of Motiram

Tencent’s Light of Motiram, bears striking visual and thematic similarities to Sony’s Horizon series. Both games feature post-apocalyptic settings where players navigate lush environments populated by mechanical animals. Critics have pointed out uncanny resemblances, from the aesthetic of mechanised creatures to thematic overlaps like “nature meets machine”​. For a side by side comparison, see here .

While Light of Motiram distinguishes itself by introducing survival mechanics, such as team-based gameplay and base-building, it doesn’t escape comparisons. This raises the question: at what point does inspiration become actionable under IP law?

Fans have drawn parallels between this situation and the ongoing legal battle between Nintendo and Pocketpair over Palworld, suggesting Sony might consider legal action for intellectual property infringement. While Light of Motiram incorporates some original features, the resemblance in core design has led many to accuse Tencent of unoriginality and blatant copying. Neither Sony nor Tencent has officially commented on these accusations or hinted at legal steps so far.


A Familiar Pattern: Palworld vs. Pokémon

Tencent’s predicament mirrors the legal battle between Nintendo and the creators of Palworld. The latter faced allegations of patent infringement (among other IP infringements). Their game, which shares visual and mechanical similarities with Pokémon, has been called “Pokémon with guns” due to its concept of capturing and using creatures in combat and other tasks.

Advertisement

Nintendo and The Pokémon Company filed a lawsuit in September 2024 in Japan, claiming that Palworld infringes on patents related to mechanics like capturing creatures using a throwable object, visual indicators for capture success rates, and riding creatures in an open world. These patents stem from a broader set filed in 2021, before Palworld’s official release

There’s growing speculation about potential legal issues between Sony and Tencent. Given Sony’s history of protecting its intellectual property and the attention this controversy is garnering, a legal dispute similar to the Nintendo-Pocketpair case could emerge, especially if Light of Motiram proves successful upon release. For now, the gaming community is watching closely to see if Sony takes action or if Tencent modifies the game to address the criticisms.


Concluding Remarks

Legal disputes like these, underscore the challenges of fostering creativity while protecting original work. Developers tread a fine line when drawing inspiration from popular titles. While derivative works can expand genre boundaries, they risk infringing on protected IP, leading to costly litigation.

Whether or not Sony files a lawsuit (most probably will do so), the discourse surrounding this case will likely influence stakeholders’ understanding of the balance between innovation and IP protection—a critical issue as the esports and gaming industries continue to grow.

Tencent’s Light of Motiram – Innovation or Imitation?

Light of Motiram – Steam

Advertisement

Author

  • Tencent’s Light of Motiram – Innovation or Imitation?

    Despoina, a pivotal member of Esports Legal News, seamlessly blends her fervour for Intellectual Property and Internet law with a specialised focus on the vibrant Video Game industry. In her current role as the Programme Element Leader for Pre-Masters and Lecturer at Brunel University London Pathway College, she navigates the realms of academia and legal practice, with a particular emphasis on the digital domain. Despoina’s commitment to advancing the legal understanding of the video game industry is evident in her Ph.D thesis, titled “The Interpretation of Copyright Protection in Video Game Streaming in Europe” which delved into the intricate relationship between copyright protection and the emerging phenomenon of video game streaming in the European context. Her dedication to this field ensures that she remains at the forefront of legal developments. With a Master of Laws (LLM) degree in International Commercial Law from Brunel University London, Despoina has solidified her expertise in the legal facets of the global business environment, providing a sturdy foundation to navigate the legal challenges within the esports and video game industry. At Esports Legal News, Despoina not only brings her academic rigor and legal expertise but also plays a crucial role in the coordination of a major ELN project, which, while still confidential, promises to be a significant contribution to the esports industry. She ensures that the intersection of Intellectual Property, Internet law, and the video game industry is navigated with precision, depth, and foresight, contributing to the ethical and legal progression of the esports industry. View all posts

Continue Reading

General

Book Review: The Routledge Handbook of Esports

Published

on

The Routledge Handbook of Esports edited by Seth Jenny, Nicolas Besombes, Tom Brock, Amanda Cote and Tobias Scholz, offers a comprehensive and interdisciplinary exploration of one of the fastest-growing sectors in contemporary sports and entertainment. This handbook is an essential resource for students, researchers, and industry professionals alike.

The structure of the book is both logical and engaging, divided into ten key themes that address the multifaceted nature of esports. Each of the 62 chapters, authored by 93 leading academics and industry specialists, presents rigorous research, practical examples, and case studies that illuminate the current landscape of esports. The themes range from foundational definitions and historical context to critical discussions on players, business management, and the future directions of esports.

Book Review: The Routledge Handbook of Esports

Chapter-by-Chapter Analysis of the The Routledge Handbook of Esports

Section 1: Introduction to Esports

The opening chapters provide a solid grounding in the subject, notably Chapter 1.2, which tackles the complex task of defining esports. Nothelfer, Jenny, and Besombes navigate the nuances of this definition with finesse, distinguishing between recreational gaming and competitive esports. Their proposed definition serves as a cornerstone for the entire handbook, establishing a clear framework for subsequent discussions.

In exploring the history of global esports, Jin and Besombes highlight significant technological milestones and cultural shifts that have propelled esports from niche competitions to a global spectacle. Their chronological account, pinpointing key transitions since the late 1950s, contextualizes the evolution of esports within broader societal changes.

Further enriching this exploration is Chapter 1.4, which meticulously outlines the diverse stakeholders within the esports ecosystem. Carrillo Vera and Antón’s depiction of the interdependencies among players, publishers, broadcasters, and fans emphasizes the complexity of this burgeoning industry. This holistic view is crucial for understanding how various entities collaborate and compete in the esports landscape.

Chapters focusing on esports genres and the role of game developers provide valuable insights into the mechanics of the industry. Hamer and Besombes categorize game genres with precision, while Ashton delves into the evolving responsibilities of game publishers, notably their transition to the “Game as a Service” model. These discussions reflect the dynamic nature of esports and its continual adaptation to technological advancements.

Advertisement

Section 2: Esports Research

The second section of the handbook shifts focus to esports research methodology, a particularly notable feature as it addresses the nascent state of academic inquiry in this field. Baker, Sharpe, and Jenny’s overview of current research topics emphasizes the multidisciplinary nature of esports studies and suggests a robust framework for organizing future research efforts. While Jenny, Harris, Scholz and Besombes discuss the organisations, Labs/Centres and Journals related to Esports research, Campbell, Jenny, Cregan and Smithies provide general recommendations for Esports research. The call for more rigorous methodologies, including randomized controlled trials and qualitative approaches, is both timely and necessary as the field matures, as Cote, Foxman and Law highlight in 2.5.

Each chapter contributes to a greater understanding of the methodologies employed in esports research, providing practical recommendations and critical insights. For instance, Macey and Hamari’s examination of survey methodologies, along with DiFrancisco-Donoghue and Varga’s focus on experimental designs, equips researchers with essential tools to explore this vibrant field.

Section 3 – Esports Players

This section of the handbook highlights the vital role of players in the esports ecosystem, examining various facets crucial for their development, support, and sustainability. Featuring insights from both industry experts and academics, it presents evidence-based strategies aimed at enhancing player performance while prioritizing overall wellness. Chapter 3.2 by Hong and Wünsch offers an in-depth look at the daily routines and pressures faced by esports players, providing a comprehensive overview of their professional lives and the expectations from various stakeholders.

Jenny explores the essential skills required for elite esports performance, emphasizing the importance of physical coordination, mental acuity, and teamwork in competitive environments. Chapter 3.4 by Varga, Scholz, and Tan delves into the use of data to assess and improve player performance, highlighting both the strengths and limitations of analytics in capturing the nuances of communication and team dynamics. Watson, Jenny, and Johnson discuss the multifaceted roles of esports coaches, offering practical advice on coaching philosophies and educational pathways to enhance coaching effectiveness. Chapter 3.6 by Swettenham, Abbot, and Leis emphasizes the significance of mental fortitude in esports, presenting strategies for improving team communication and guidance on seeking psychological support. Migliore provides practical recommendations for physical activity, sleep, nutrition, and mental health, addressing common issues like stress and gaming addiction.

Chapter 3.8 by McGee, Ho, and Jenny highlights common injuries in esports and advocate for ergonomic practices to enhance player safety and performance. Meissner shares valuable insights on how to support children through various stages of their esports journey, from early involvement to professional aspirations. Chapter 3.10 by Fisackerly outlines the journey from casual to professional play, noting the impact of collegiate esports systems and the challenges players face in their careers.

Advertisement

Section 4 – Esports Business and Management

Section 4 of the handbook dives into the commercial landscape of esports, examining the business and management practices that underpin this rapidly growing industry. While esports have attracted entrepreneurs and investors, it has also faced challenges, leading to calls for more sustainable business models. This section seeks to bridge traditional business principles with the unique dynamics of esports, offering readers valuable insights into various aspects of the field.

Chapter 4.2 by Parshakov and Barajas explores the financial frameworks and business models that drive the esports industry. It highlights diverse revenue streams and cost structures, alongside the evolution of prize money, showcasing the financial maturation of esports and investment opportunities within publicly traded companies.

Gentile introduces the discipline of esports management, emphasizing the need for effective managerial and leadership practices in this burgeoning landscape. The chapter reviews organizational structures within esports teams and leagues, providing a solid foundation for aspiring managers.

Chapter 4.4 by Helmefalk, Berndt, McCauley, Borg, and Erlandsson serves as a practical guide to orchestrating offline esports events. It covers key processes and stakeholder expectations, equipping readers with insights to successfully plan and execute tournaments.

Kauweloa explores the evolving architecture of esports venues, categorizing them into three types. The chapter addresses the design and technical considerations that influence venue management, urging future research to rethink conventional definitions of esports arenas. Chapter 4.6 by Becka, Antón, Vera, and Ruera examines the intersection of esports and tourism, identifying how esports events can enhance city branding and attract tourists. It highlights nine global “esports tourist capitals” and the potential for integrating esports within the hospitality sector.

Advertisement

McCauley and Baker dissect the marketing strategies shaping the esports landscape. They analyse consumer behaviours and innovative branding techniques, offering a comprehensive overview of team and player branding as well as digital marketing practices. Chapter 4.8 by Pizzo and Hedlund delves into the critical role of sponsorships in esports, examining the relationship between endemic and non-endemic brands. It emphasizes the importance of authentic engagement to resonate with esports audiences and provides recommendations for maximizing sponsorship effectiveness.

Mitchell, Möglich, and Ritacco explore the evolving field of public relations within esports, discussing challenges and best practices. They highlight effective communication and crisis management strategies that are essential for navigating the complex PR landscape. Chapter 4.10 by Büßecker, Lenke, Ruhland, Vitale, and Scholz investigates unique HR management practices in esports, from talent acquisition to organizational culture. It emphasizes the need for tailored HR approaches to foster engagement and adapt to the industry’s distinctive demands.

Section 5 – Esports Media and Communication

Section 5 of the handbook delves into the pivotal realm of media and communication within esports, illustrating how digital athleticism is conveyed to audiences worldwide. This segment combines insights from seasoned practitioners and scholars, providing a thorough exploration of esports journalism, production, streaming, spectatorship, and fandom.

Chapter 5.2 by Wolf and Cote traces the evolution of esports journalism, detailing its transition from niche forums to mainstream coverage. The authors examine the challenges faced by traditional media, such as ESPN and Yahoo, in grasping the esports narrative, while also highlighting the rise of content creators as an alternative source of news and insights.

Knutson and Liebig discuss the intricate processes behind esports broadcasts, focusing on the livestreaming ecosystem. They outline the various roles involved in production and draw comparisons with traditional sports broadcasting, emphasizing the unique elements of digital content creation, audience engagement, and the technologies that drive profitability.

Advertisement

Smethers provides a deep dive into streaming platforms like Twitch and YouTube, along with traditional TV networks. Smethers explores monetization strategies, rights management, and the engagement dynamics unique to each platform, shedding light on the financial structures that support esports broadcasting.

Välisalo, Brock, and Law examine the evolution of esports audiences, from casual gatherings to structured events. They analyse demographics, motivations, and engagement practices, emphasizing the importance of real-time interaction and data insights in enhancing the viewer experience for both in-person and online audiences.

Jarrett explores the profound influence of fandom on the esports ecosystem, highlighting the symbiotic relationship between the industry and its fans. He discusses the origins of esports genres from fan adaptations and introduces theoretical frameworks from cultural studies to analyse fan identities, creativity, and the dynamic interactions that define esports fandom.

Section 6 – Esports Education

Section 6 of the handbook explores the integration of esports into educational settings, addressing both instructional and competitive dimensions. As a relatively new phenomenon, this section presents cutting-edge insights into how esports can motivate learning, improve student retention, develop digital literacy skills, and enhance essential life skills such as communication and teamwork.

Chapter 6.2 by Jenny, Gawrysiak, O’Hagan, and Besombes provides a global perspective on esports education at both secondary and higher education levels. The authors clarify a common misconception that esports education solely focuses on gaming skills, emphasizing instead the importance of acquiring knowledge relevant to various esports and gaming industry careers, such as management and media. They present a detailed inventory of academic programs, noting that most focus on preparing students for business-related roles in esports. The authors outline essential characteristics of effective programs, including qualified faculty and industry connections, while acknowledging existing scepticism about esports education’s sustainability.

Advertisement

Foxman, Jenny, Cote, King, and Becka discuss the environment and challenges faced by collegiate esports teams, highlighting both student-driven clubs and institution-supported varsity programs. Key issues include diversity, equity, and inclusion, as well as the lack of standardization across programs. The authors provide practical advice for establishing a collegiate esports program, along with insights from interviews that capture different regional perspectives.

Harvey offers a practical guide for developing competitive esports programs in primary and secondary education. The chapter emphasizes how esports can foster digital literacy and provide a low-risk environment for students to engage with technology while having fun. As students advance, competitions become more structured, and considerations such as staffing, resources, and game selection become crucial. Harvey advocates for a balanced approach that combines education, sport, and gaming, empowering students through their participation in esports.

Section 7 – Critical Concerns in Esports

Section 7 of the handbook tackles the complex challenges and pressing issues within the esports ecosystem, shedding light on eight key areas that demand further research and attention from both participants and organizations. This section provides a comprehensive overview of the critical concerns that shape the future of esports, including governance, ethics, inclusion, and environmental sustainability.

Chapter 7.2 by Abanazir and Shinohara addresses the rapid growth of esports outpacing its regulatory frameworks. The authors highlight the intricate relationship between game developers and third-party organizers, noting the lack of established governing bodies and the resulting fluid legal environment. They suggest that supranational entities like the EU could play a pivotal role in establishing coherent guidelines for esports governance.

Jenny, Schelfhout, and Besombes explore the potential inclusion of esports in the Olympic Games, outlining the challenges and opportunities involved. The authors stress the fragmented nature of the esports landscape, which lacks a legitimate international governing body, a significant hurdle for integration into the Olympic framework. However, they remain hopeful about the possibility of esports participating in the 2028 Games in Los Angeles.

Advertisement

Brock and Johnson investigate the role of gambling in esports, particularly focusing on contentious practices like loot boxes and skin betting. These forms of gambling raise ethical concerns and have led to public scandals and regulatory scrutiny. They emphasize that new technologies complicate the gambling ecosystem, introducing both opportunities and challenges.

Partin discusses the ethical dilemmas surrounding cheating in esports, arguing that it undermines the integrity of competition. The chapter examines the socio-technical factors that contribute to cheating, suggesting that players’ social and economic circumstances can influence their decisions.

Chapter 7.6 by Frommel and Mandryk delves into the pervasive issue of toxicity within esports communities. The authors highlight the ambiguity of the term and the challenges it presents in creating effective enforcement mechanisms. They discuss efforts by organizations to categorize toxic behaviours and explore the role of AI moderation in promoting safer online environments.

Friman, Ruotsalainen, and Ståhl tackle the cultural barriers that alienate women and minorities in esports, challenging the stereotype of the “esports athlete” as predominantly white and male. They advocate for initiatives that promote diversity and equity, highlighting organizations working to support underrepresented players.

Chapter 7.8 by Hassan, Baltzar, and Kämäräinen examines the barriers faced by gamers with disabilities and the need for accommodations. The authors argue for a more nuanced understanding of disability that considers intersecting factors such as socio-economic status and race, and they draw parallels to the Paralympics as a potential model for inclusivity.

Advertisement

Hiltscher and Möglich situate esports within broader environmental challenges, advocating for corporate social responsibility (CSR) to drive sustainability in the industry. They encourage esports organizations to invest in renewable energy and align with the United Nations’ Sustainable Development Goals (SDGs) to reduce their carbon footprint.

Section 8 – Global Esports Cultures

Section 8 of the Routledge Handbook of Esports offers a fascinating exploration of the diverse esports ecosystems around the world. While esports is often viewed through the lens of its origins in East Asia and North America, this section emphasizes the unique cultural, social, and economic factors shaping esports in various global regions. Each chapter provides critical insights into how esports is developing and operating differently across the globe, highlighting both commonalities and distinct differences.

Chapter 8.2 by El Borno and Mokhtar traces the evolution of esports in the MENA region, from grassroots tournaments in cyber cafes to its current professional landscape. The authors discuss significant challenges faced, such as infrastructure and investment, while also showcasing success stories like the Intel Arabian Cup, illustrating the region’s potential for growth.

Focusing on East Asia as the heart of the esports industry, Jin and Kim expand the conversation to Southeast and South Asia. The authors emphasize regional nuances, fan culture, and emerging esports markets, offering a holistic view of Asia’s complex esports landscape beyond just the established powers like China and South Korea.

Koskimaa examines the dual trajectory of European esports: its integration into broader digital entertainment and the sportification of competitive gaming. The chapter highlights regional variations, popular titles, and the impact of local fandoms, providing a comprehensive picture of Europe’s diverse esports culture.

Advertisement

Micallef and Formosa discuss the mixed history of esports in Oceania, particularly in Australia and New Zealand, noting both advancements and setbacks, such as the cancellation of the Oceanic Pro League. The authors identify unique challenges, like geographic barriers and market size, while emphasizing the growth of university esports programs as a bright spot.

Chapter 8.6 by Scholl and Stout offers a critical analysis of the North American esports scene, detailing the influential role of organizations like Major League Gaming. It explores the intricate relationships among game publishers, streaming platforms, and traditional sports leagues, highlighting the interconnectedness of esports cultures in the U.S. and Canada.

Focusing on Brazil, Argentina, Peru, and Chile, Macedo, Kurtz, and Becka discuss the growth and diversity of esports in South America. They address challenges such as governance and gender equity while identifying trends that could shape the future of esports in the region.

Overall, this section effectively captures the rich tapestry of global esports cultures, emphasizing that while esports is a worldwide phenomenon, its expression is deeply influenced by local contexts. The inclusion of tables summarizing key leagues, publishers, and games further enhances the readers’ understanding of each region’s esports landscape.

Section 9 – Esports Future Directions

Section 9 delves into the uncertain future of esports, acknowledging the inherent unpredictability of the industry. Jenny, Brock, Scholz, Cote and Besombes provide a thought-provoking analysis of potential trends and sustainability challenges facing esports, encouraging readers to engage in discussions about its direction.

Advertisement

The chapter begins by reflecting on recent developments, such as the dissolution of the Overwatch League and changes in collegiate esports structures. These events exemplify the volatility within the esports ecosystem and the difficulty of making long-term predictions. By examining past predictions, the authors provide a foundation for understanding how external factors, such as the COVID-19 pandemic, can drastically alter the trajectory of esports. The authors emphasize the need for sustainable practices across economic, social, and environmental dimensions. They argue that without addressing these sustainability challenges, the future of esports remains precarious, echoing concerns about overreliance on sponsorship and the need for diversified revenue streams. Predictions regarding future technological advancements in esports venues, streaming, and training highlight the importance of adapting to evolving consumer preferences and market demands.

Section 10 – Key Terms Definitions

Section 10 offers essential definitions of key terms relevant to the esports field, providing a valuable resource for both newcomers and seasoned professionals. This section enhances the handbook’s accessibility and understanding, ensuring that readers are equipped with a solid foundation of terminology as they engage with the broader discussions presented in the previous sections.

Conclusion

The Routledge Handbook of Esports provides a comprehensive examination of the esports industry, from its diverse global cultures to the challenges and uncertainties it faces. The insights and analyses presented are essential for understanding the current state and future possibilities of esports, making it a vital resource for anyone interested in this rapidly evolving field.

While the handbook touches on esports governance and law in Chapter 7.2, a more comprehensive examination of esports law could be beneficial. For example, adeeper dive into how intellectual property laws affect game developers, players, and tournament organisers, contractual agreements, labour law considerations, legal implications of streaming and content creation, and dispute resolution mechanisms would provide a more thorough analysis of the legal challenges and frameworks within the esports industry.

Advertisement

Author

  • Book Review: The Routledge Handbook of Esports

    Despoina, a pivotal member of Esports Legal News, seamlessly blends her fervour for Intellectual Property and Internet law with a specialised focus on the vibrant Video Game industry. In her current role as the Programme Element Leader for Pre-Masters and Lecturer at Brunel University London Pathway College, she navigates the realms of academia and legal practice, with a particular emphasis on the digital domain. Despoina’s commitment to advancing the legal understanding of the video game industry is evident in her Ph.D thesis, titled “The Interpretation of Copyright Protection in Video Game Streaming in Europe” which delved into the intricate relationship between copyright protection and the emerging phenomenon of video game streaming in the European context. Her dedication to this field ensures that she remains at the forefront of legal developments. With a Master of Laws (LLM) degree in International Commercial Law from Brunel University London, Despoina has solidified her expertise in the legal facets of the global business environment, providing a sturdy foundation to navigate the legal challenges within the esports and video game industry. At Esports Legal News, Despoina not only brings her academic rigor and legal expertise but also plays a crucial role in the coordination of a major ELN project, which, while still confidential, promises to be a significant contribution to the esports industry. She ensures that the intersection of Intellectual Property, Internet law, and the video game industry is navigated with precision, depth, and foresight, contributing to the ethical and legal progression of the esports industry. View all posts

Continue Reading

General

CMS Advises on Inaugural Esports World Cup in Riyadh

Published

on

CMS Logo ELN

The international full service law firm CMS has provided comprehensive legal counsel to the Esports World Cup Foundation in organizing the first-ever Esports World Cup (EWC), set to take place in Riyadh, Saudi Arabia, over eight weeks from July to August 2024.

The Esports World Cup is poised to make history, with over 1,500 players from more than 60 countries competing in 21 of the world’s most popular games for a share of a record-breaking USD 60 million prize pool.

“This is a monumental event in the history of esports,”

commented Ralf Reichert, CEO of the Esports World Cup Foundation.

“We are witnessing the convergence of gaming and sports as universal languages, uniting the global community through competition, advancing the esports industry, and fostering growth across the entire network.”

A global CMS team, led by Dr. Pietro Graf Fringuelli and Samuel Oustayiannis, consisting of over 30 lawyers from Germany, the UK, and Saudi Arabia, provided legal advice on all aspects of the EWC. This included team agreements, tournament rules, sponsorship contracts, media rights distribution, and partnerships with game publishers.

Dr. Pietro Graf Fringuelli, Partner at CMS Germany and Co-Head of the international CMS Technology, Media & Communications Group, stated,

Advertisement

“The esports industry is growing at an astonishing pace, drawing record numbers of viewers worldwide. The EWC will transform the entire esports landscape and contribute to developing a sustainable ecosystem.”

The Esports World Cup, supported by major sponsors like Sony, TikTok, Amazon, Adidas, Pepsi, and MasterCard, is an annual tournament series featuring over 450 teams globally. The event is accessible to both professional esports players and gaming enthusiasts, with broadcasts on television and streams across various digital platforms. Featured games include League of Legends, Call of Duty: Warzone, Counter-Strike 2, EA Sports FC 24, and Fortnite.

CMS Partner Sam Oustayiannis, leading the UK team on media rights and partnerships, added,

“The Esports World Cup is a unique event attracting significant interest from competitors, sponsors, and the media. We’ve assembled a collaborative team across multiple offices to cover all legal aspects, ensuring a successful and enjoyable event. We eagerly anticipate the future of the Esports World Cup!”

The EWC continues in Riyadh until August 24, 2024, marking a new chapter in esports with CMS playing a crucial role as the legal advisor to the organizers.

CMS Legal Team Overview for Esports World Cup

CMS Germany

  • Dr. Pietro Graf Fringuelli – Lead Partner, TMC (Technology, Media & Communications)
  • Dr. Sebastian Cording – Partner, TMC
  • Dr. Markus Häuser – Partner, TMC
  • Dr. Patrick Ehinger – Counsel, TMC
  • Dr. Fiona Savary – Counsel, TMC
  • Dr. Felix Glocker – Senior Associate, TMC
  • Georg Schneider – Senior Associate, TMC
  • Lara Grünberg – Associate, TMC
  • Dr. Malte Bruhns – Partner, Corporate/M&A
  • Dr. Henrik Meurer – Associate, Corporate/M&A
  • Dr. Martin Gerecke – Partner, IP (Intellectual Property)
  • Dr. Tobias Nasr – Senior Associate, IP
  • Dr. Robert Budde – Partner, Commercial
  • Phillip Bubinger – Counsel, Commercial
  • Prof. Dr. Björn Gaul – Partner, Labor, Employment & Pensions
  • Victoria Kaule – Counsel, Labor, Employment & Pensions
  • Hanna Hamacher – Senior Associate, Labor, Employment & Pensions
  • Thomas Gerdel – Partner, Tax
  • Dr. Hendrik Arendt – Senior Associate, Tax
  • Christoff Soltau – Partner, Antitrust, Competition & Trade
  • Dr. Denis Schlimpert – Counsel, Antitrust, Competition & Trade

CMS Saudi Arabia

  • Mohammed Aldowish – Partner
  • Wala Alawajy
  • Sara Alsaud
  • Reem Alsmail

CMS United Arab Emirates

  • Ben Gibson – Partner

CMS UK

  • Sam Oustayiannis – Partner
  • Rebekah Hayes – Partner
  • Coralie Barker
  • Georgia Clark
  • Harry Hall
  • Laurel O’Dell
  • Carter Rich
  • Hamish Temporal
  • Daniel West

Author

  • Leonid Shmatenko

    Leonid Shmatenko is part of Eversheds Sutherlands’ data protection and technology law team. He has vast experience in regulatory and general issues in the areas of eSports and Blockchain. He advises eSports associations and clubs on all legal issues, advises and supports crypto startups in all matters from planning, preparation to execution of private and public token offerings (so-called Initial Coin Offerings or ICOs). Furthermore, Leonid Shmatenko specializes in international arbitration and has participated in several arbitration proceedings (SAC, ICC, DIS, UNCITRAL, ICSID, ad hoc) as a party representative and secretary of the tribunal. Leonid Shmatenko studied at the Heinrich Heine University in Düsseldorf and is currently pursuing a PhD in international law. After his successful first state examination (2011), he completed his legal clerkship, inter alia, at the German Embassy in Lima and within international law firms in Düsseldorf and Paris. He passed the second state examination in 2015. He is an external lecturer at the National Law University of Ukraine “Yaroslav Mudryi”, where he teaches International Investment Law. He is admitted to the Bar in Switzerland and Germany. Before joining Eversheds Sutherland, Leonid Shmatenko worked as an attorney at leading law firms in Geneva, Munich and Paris. View all posts

Continue Reading

Trending