Page 54 - Forbes - Asia (September 2018)

FORBES ASIA
ESPORTS

A Really Big Score

Andy Dinh made his bones as the Derek Jeter of esports. Now the
26-year-old gaming legend owns one of the world’s most successful teams.

But can he continue to dominate as billionaire moguls enter the arena?

BY MATT PEREZ

housands of screaming fans packed the stands and Soccer ($644 million in 2016). ESPN has been broadcasting esports
oor space at Boston’s TD Garden in September 2017— for several years, and last year’s League of Legends World Cham-
to watch a video game championship. At Center Court pionship inal had an online viewership of 57.6 million—about
Twas an elevated stage with ten computers running the half of last year’s Super Bowl TV audience. Major brands are also
competitive game League of Legends. Four massive screens were spending millions to get in front of this young and rabid male au-
mounted above to display the action. When confetti inally rained dience. Video gaming might even be an Olympic sport someday
down on the crowd, the threepeating champs jumped around be- soon. League of Legends has already taken the irst step, appearing
tween smoke machines as a familiar chant broke out—“T-S-M! as a demonstration event at the 2018 Asian Games.
T-S-M! T-S-M!”—much like Alabama fans cheer “S-E-C! S-E-C! he concept of revenue sharing, particularly of broadcast in-
S-E-C!” in Tuscaloosa. come, among teams—common in traditional sports leagues—is
TSM—short for Team SoloMid—is one of the most recognizable still in its infancy in esports, so sponsorships dominate the space.
brands in esports, and its victory in Boston built on its success as the he Amsterdam-based market researcher Newzoo estimates
winningest North American team in League of Legends, competitive that 40% of overall revenue this year will come from sponsor-
gaming’s top title. But its founder, CEO and owner, Andy Dinh, who ship deals. Some brands partner with the league and tournament
emerged from the sidelines to hug his players onstage, had only one organizers, while others invest on the team side. TSM features
thought ater the team’s sixth championship: What’s next? Geico and Gillette on its jersey, creates “Team Soda Mid” com-
“I want TSM to be a household brand; I want us to be the Dal- mercials with Dr Pepper and uses Logitech keyboards and mice
las Cowboys and the Yankees,” says the perpetually kinetic 26-year- during competitions.
old, who was featured on Forbes’ 30 Under 30 list in 2017. “It’s not he paucity of reliable ROI metrics have led advertisers to look
enough for me just to be successful in North America.” at social media and streaming to help make decisions about where
Esport companies like TSM ield competitive teams in video to spend. TSM and its players have 60 million followers across vari-
games that are as fun to watch—whether live in a stadium or on- ous social networks. Forbes estimates that TSM had revenue of $21
line on a game-streaming service like Amazon’s Twitch—as they million for 2017, on the high end for an esports company.
are to play. he basic premise of League of Legends has two teams Despite all this success, Dinh admits TSM could better take ad-
of ive at opposite ends of an intricate map trying to destroy each vantage of new opportunities in the rapidly evolving market. he
other’s bases. hroughout a match, typically 30 to 40 minutes, next big opportunity may be the 2017 video game Fortnite, a bil-
players kill monsters (and, of course, opposing players) to earn lion-dollar sensation that 125 million play around the world, in-
gold and “experience” to buy new upgrades and become stronger cluding celebrities such as Drake and Chance the Rapper as well as
than their opponent. pro gamers who stream their matches online to tens of thousands
Billionaire owners of professional sports teams such as Rob- of viewers every day.
ert Krat (of the New England Patriots) and Jerry Jones (Dallas Fortnite is like a mix of he Hunger Games, Minecra and Lord of
Cowboys) are among the most signiicant new owners in esports. the Flies: 100 players drop down on an island and battle it out until
Because they own (or operate) venues where esports competi- only one player or team is let standing.
tions can be held, these moguls have a front-row seat to the indus- One superstar gamer, 19-year-old Ali “Myth” Kabbani, was
try’s explosive growth, and they are spending millions in hopes of signed by TSM early this year as the team’s Fortnite stud. he sign-
building franchises as big as TSM. ing soon led to a $1.5 million investment by TSM: he team now
Worldwide, the esports industry is projected to reap nearly $1 leases a 4,300-square-foot house for its roster of four to live, prac-
billion in revenue this year and is building an ever-growing global tice and stream for hours a day. he seven-igure bet is already pay-
viewership. hat’s nothing compared with NFL football ($13.2 bil- ing of. Kabbani has become the second-biggest star on Twitch, with
lion in 2016), but it is rivaling second-tier sports like Major League 4.1 million followers, driving new fans to the TSM brand. hat ever-

52 | FORBES ASIA SEPTEMBER 2018