11/14/19: Artist Capital Management launched a $100 million fund dedicated to esports

 

Thursday, November 14, 2019
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Artist Capital Management is launching Artist Esports Edge Fund after closing a $100 million fund for investing in esports disciplines. The company already has stakes in the likes of 100 Thieves and Washington Esports Ventures, owners of the Overwatch League franchise, Washington Justice, with the fund used to help institutional investors get into the esports industry as it becomes more formalized. “Similar to the evolution of other internet verticals, we expect that a small number of esports companies will eventually win the lion’s share of industry revenue and market capitalization” said Josh Dienstag, Artist Capital Management’s chief investment officer, in a statement. “We hope to partner with the entrepreneurs who are building those winning platforms.”
 
COMPETITION

 
The League of Legends World Championship saw the battle between FunPlus Phoenix and G2 Esports set new records in viewership (which we break down below), including a new record for peak concurrent viewership on Twitch, hitting 1,743,204, per GitHyp. Riot Games is moving quickly to expand on its success, not only planning a League of Legends World Cup, according to ESPN, but also opening polls for the 2019 League of Legends All-Star Event, allowing fans to vote for their favorite pros through Nov. 20. The event will take place at the Esports Arena in Las Vegas from Dec. 5-7.
 
Riot Games also announced that Shanghai would serve as Host City of the 2020 Final. The 10th World Championship Finals next year will be held in Shanghai Stadium, the current home of the Chinese Super League reigning championship, with the city previously hosting the 2017 World Championship semifinals. Locations for the Play-In, Group, and Knockout Stages will be revealed in the future.

 

Overwatch League talent will have a new facility to hang their hats next season , with the crew zeroing in on a move to LA Center Studios as the new home of its 2020 broadcast operations, including its pre- and post-match shows, according to insiders. Of course, matches hit the road for the full season for the first time with every team slated to take part in homestands and the season kicking off in NY on Feb. 8. As a result, Blizzard opted to shift away from Blizzard Arena in Burbank to its new digs in LA.

The CoD League unveiled its World Tour schedule for 2020. The league’s launch weekend will be kicking off in Minnesota at the Minneapolis Armory from Friday, Jan. 24 to Sunday, Jan. 26. The Minnesota Røkkr will be hosting all 12 CoD League teams, while also hosting the season’s first Call of Duty Challengers Open—amateur players from around the world can compete in an open bracket tournament format.

 
The ONE Esports Dota 2 World Pro Invitational locked in its roster of talent , anchored by host Jorien ‘Sheever’ van der Heijden, with casters that include Austin ‘Capitalist’ Walsh, Owen ‘ODPixel’ Davies, Tobi ‘TobiWan’ Dawson, Ioannis ‘Fogged’ Loucas, Trent ‘TrentPax’ MacKenzie, Brian ‘BSJ’ Canavan, and Dominik ‘Black^’ Reitmeier. Johan ‘Weppas’ Westberg and Rokard ‘skrff’ Holm Melin will serve as observers for the event, which runs Dec. 17-22 out of Singapore.
 
On the college front, the Independent College Bookstore Association is partnering with the American Video Game League, the collegiate esports organization owned by BoomTV, to launch the first ever esports tournament series integrated with college bookstores across the country. According to the announcement, the partnership will “lay the groundwork for positioning campus stores as valuable resources for the collegiate gaming community” with The AVGL Masters: Campus Gaming Series. Participating schools for the pilot include Kennesaw State University, NC State University, Oklahoma State University, UCLA, UC San Diego, University of Illinois Urbana-Champaign, University of Maine, University of Minnesota, University of Pittsburgh, and Western Kentucky University. The pilot is supported by brands including Belkin International, Core Gaming by Mobile Edge, OMEN by HP, Predator by Acer, and Viper Gaming by Patriot. The exclusive distribution partner is D&H Distributing.
 
Thunder Gaming is hosting pop-up invitational tournament BANG – Mortal Kombat with hip hop recording artist and fashion designer Chief Keef at Thunder Gaming Studios on Dec. 13. Rap music celebrities including Keef will compete with interested gamers in a six-on-six crew battle in Mortal Kombat 11. The event will be streamed live on Thunder Gaming’s Twitch channel and in stereoscopic VR through Live Planet.
 
TRENDS

 
The 2019 League of Legends World Championship wrapped up Sunday with FunPlus Phoenix defeating G2 in a 3-0 sweep. However, the bigger story was the massive viewership the World Championship garnered since the beginning of October. Stream Hatchet investigated the year-over-year growth in hours watched on North American platforms and found incredible results:
  • The League of Legends World Championship grew 40.83% in hours watched on North American platforms from 2018 to 2019.
  • YouTube increased its viewership market share of the tournament by 13.6% YoY.
  • The addition of more North American platforms streaming the World Championship in the future may cause an even bigger YoY increase in 2020 and beyond.
For more information about the 2019 LoL World Championship and other streaming data, contact sales@streamhatchet.com .
   
ACTIVATION

Visa and FACEIT locked in a deal to launch a new dedicated gaming environment beginning with Russia. The collaboration between Visa and FACEIT will “focus on designing and distributing fun and unique online programs where esports enthusiasts can develop their gaming skills to participate in different tournament formats.” “According to our estimations, the global esports market is forecasted to reach 500 million gamers by 2020. Visa is keen to contribute its payment expertise to the space and deliver added value to this audience. Given the synergy between FACEIT’s stronghold on the Russian market, the overall number of esports audience and how receptive Russians are in general to innovative concepts, this is absolutely the right geography to start with.” said Evgeniy Zelenyi, head of Strategic Partnerships and Fintech, Visa Russia.
 
The upcoming Esports Awards entering into a partnership with auto brand Lexus to serve as a partner and to supply supercars for the show, which takes place on Nov. 16 at Esports Stadium Arlington.
 
Nerd Street Gamers announced a partnership with Linode , the world’s largest independent open cloud provider. The deal, according to the announcement, “marks the continued relationship of two Philadelphia-based companies working to grow and make the esports community more accessible on both the local and national level.”
 
PLATFORMS

 
Bleacher Report debuted Battlestations , designed to provide an “inside glimpse at the gaming lives of today’s pro athletes.” The series is hosted by four-time Call of Duty Champion Doug “Censor” Martin, with episode one looking at Sacramento Kings star De’Aaron Fox’s gaming setup. Battlestations will initially be developed for Bleacher Report’s owned and operated channels.
 
FanDuel announced that it is now the first online sportsbook to offer esports betting, taking wagers for the weekend’s League of Legends World Championship. The platform is taking online bets from FanDuel customers in New Jersey.
 
Score Media and Gaming announced that theScore esports has now passed one million subscribers on its YouTube channel, stating that “the milestone is a result of the channel’s strategy to break down the barriers that often make the subject of esports inaccessible for many, producing content for both hardcore and casual gaming fans alike through the largest dedicated esports content team anywhere.” “We’re incredibly proud of our growth rate and the success we’ve found across theScore esports’ video franchises,” said Aubrey Levy, VP of Content & Marketing at theScore. “Our focus is on producing premium video storytelling that is equally entertaining and approachable for all levels of fandom. We’re thrilled at how audiences have responded to our content, and we thank our loyal fanbase for all of their support in helping us hit one million subscribers.”
 
Twitch opened the doors to Twitch Studio Beta for all , with the app available for anyone to download and try for themselves on Windows 7 or newer. Features include: Guided Setup – simplified detection of your mic, webcam, monitor resolution, bitrate, and more to help your stream look and sound great; Customizable Templates – Twitch Studio comes loaded with starter layouts and overlays to help you effortlessly personalize the look of your stream; and Integrated Alerts – Easily monitor and interact with your community using Twitch Studio’s built-in alerts, activity feed, and Twitch chat.
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TEAMS

 
FaZe Clan hit launch to its first retail pop-up store , titled FaZe Arcade in LA on Nov. 16, and open for business through December. The FaZe Clan Arcade Pop-Up will showcase and sell designs with Kappa, CLOT and Lyrical Lemonade, as well as FaZe Clan and FaZe Clan talent apparel and merchandise. The FaZe Arcade Pop-Up will present three exclusive collaborations with merchandise ranging in price from $20.00 to $150.00, as well as gaming rig installations so people can both shop and play.
 
G2 Esports and Mastercard announced a strategic partnership to bring Priceless Experiences, exclusive access and fan engagement activations to G2’s League of Legends community. Following on the heels of Mastercard’s partnership with Riot Games League of Legends Championship Series (LCS), G2 and Mastercard will promote experiences that bring the community closer to their favorite G2 players. In Mastercard’s first partnership with a League of Legends team, “fans will be able to live out their passion for G2 through meet-and-greets, 1v1 competitions with G2 League of Legends pro players and exclusive behind-the-scenes access during the League of Legends World Championship.”
 
Kraft Sports + Entertainment, Patriot Place and Helix eSports announced the opening of an 18,000 square-foot esports complex that will serve as the Boston Uprising practice facility and a Helix eSports gaming center. The Boston Uprising also announced a new partnership with Helix eSports, making Helix the Official Gaming Center of the Boston Uprising. Patriot Place and the Boston Uprising will partner with Helix eSports to open the first gaming center adjacent to a major professional sporting venue, offering more than 100 gaming stations with PCs, top-tier gaming and network infrastructure and 30+ consoles open to the public daily for social, school, competitive and casual gameplay.
 
Monumental Sports & Entertainment unlocked Caps Gaming , a new esports-focused sub-brand designed to “help foster the growth of the NHL competitive gaming community and create visibility for hockey’s esports scene.” As such, the org will host the Caps Gaming Showcase – a 32-team, 6v6 EA Sports NHL competition on Xbox One and signed top NHL esports pro John “JohnWayne” Casagranda to join the organization as an official streamer. “Esports is a key initiative for us at Monumental and we are thrilled to add Caps Gaming to the family as we continue to tap into a new generation of fans,” Zach Leonsis, Senior Vice President of Strategic Initiatives at Monumental Sports & Entertainment, said. “We are excited to welcome John to The District and look forward to hosting the premier NHL competition with the Caps Gaming Showcase in early December.”
 
Speaking of Monumental Sports & Entertainment, the company also unveiled a multiyear marquee jersey patch partnership with Alarm.com for Wizards District Gaming of the NBA 2K League. As part of this landmark partnership, Alarm.com will have virtual in-game signage during Wizards District Gaming play in the NBA 2K League in addition to the official jersey patch entitlement. Alarm.com will also have entitlement of NBA 2K League Draft coverage for Wizards District Gaming, which holds the No. 1 overall pick this season for the first time in franchise history.
 
Complexity Gaming and Herman Miller closed a deal that makes the global design leader and furniture manufacturer the team’s official seating partner and title sponsor of the newly named Herman Miller Innovation Lab, housed within the GameStop Performance Center. Leveraging real-time player data from the in-house innovation lab, Complexity and Herman Miller are working together to understand gamers’ needs for high-quality ergonomic gaming equipment.
 
Multiple reports now that Echo Fox is closing its doors following a host of legal issues that led to the departure of co-founder Rick Fox. WIN.gg reports that Echo Fox investors have confirmed that the team has been dissolved and let go of all of its players and staff. The team was founded in 2015 and had been a mainstay in several titles.
 
READYUP GAMES OF THE WEEK

 

 
 POWER PLAYERS
 
 
Check out our interviews with Managing Director of the NBA 2K League, Brendan Donohue and player Chiquita Evans from EBS this year. Click here for the video.
 
INDUSTRY

 
Allied Esports Entertainment released financial results for the third quarter ending Sept. 30, 2019 in addition to updating key business initiatives. Total revenues in the third quarter of 2019 increased 10.2% to $6.0 million from $5.5 million in the third quarter of 2018. Total costs and expenses for the third quarter decreased 17.1% to $9.9 million from $11.9 million in the third quarter of 2018. Net loss attributed to Allied Esports for the third quarter of 2019 improved to $4.3 million, compared to a net loss of $6.7 million in the prior year period. The Company held 85 events at its flagship location, HyperX Esports Arena Las Vegas, during the quarter.
 
The British Esports Association revealed its goals for the next three years , with a focus on driving awareness of esports in the UK, improving the standard of UK esports, and cultivating future talent. The Association also announced plans for its Women in Esports campaign, per Esports Insider, in a move to drive raise awareness and improve inclusivity in esports. “By celebrating and supporting women in esports we can help raise awareness of the accessibility and inclusivity of esports. Competitive videogaming is enjoyed by diverse audiences worldwide, and by learning about different women involved, and how many have overcome challenges, we can help support wider UK talent to get involved from the grassroots up,” said Alice Leaman, Schools and Colleges Liaison Officer for British Esports Association.
 
GameWorks is relocating its Chesapeake, Va. venue to Norfolk where it is expected to open in spring 2020 at MacArthur Center. The 19,000 square-foot GameWorks Norfolk will be centered around esports, featuring a large, state-of-the-art esports lounge along with an expansive game floor. “GameWorks is well-known for its emphasis on esports and dedication to delivering experiences gamers most enjoy,” said Laurie Paquette, senior vice president of Starwood Retail Partners, which operates MacArthur Center. “We know our shoppers, visitors and tourists will flock to play as well as watch the many esports tournaments that will take place here, and take part in billiards, arcade games and more. We’re pleased to welcome GameWorks; it is a unique and exciting addition to MacArthur Center’s more than 120 stores and restaurants.”
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