How to Build and Fund A Successful Grassroots Esports Organization E-Book

Martin Fritzen

• Herausgeber: Books on Demand
• Kategorie: Lebensstil
• Sprache: Englisch

Seitenzahl: 148

Veröffentlichungsjahr: 2020

Beschreibung

When you read this, you will learn the answers to three questions: 1. How to build an esports organization 2. How to create profitable revenue streams 3. How and why your esports organization will benefit the society This book is designed to give you the blueprint on how to build an esport organization and provide you with an inspirational catalogue of ideas for you to create several profitable revenue streams, and thus, securely manage the operation and development of your esports team, organization or sports club. You will get a collection of successful experiences and strategies from over 200 esports clubs and organizations. I have met and talked to over 100 esport and gaming industry leaders and brands like; Logitech, Microsoft, Red Bull, Razer and Intel, to understand, why and how they do esport partnerships. Additionally, this book will arm you with amazing science and arguments, as to why, esports benefits society as well.

Leseprobe

Tabe of Contents

Introduction

About the author

How to Start, Structure, and Organize an Esports Organization

Nine Steps to Starting an Esports Organization, Association or Club

How to Find Partners, Get Funded, and Build a Financially Strong Esports Organization

Financing

Defining Your Products and Services

Creating Your Sales and Marketing Deck

Presales

Sales

Partnership Management

Ideas to Generate Revenue

Fundraising

10 Step Guide to Apply For Grants and Funds

Investors

Case Study: Bredballe IF esport

Inspiration from the esports industry: Razer

Inspiration from the esports industry: Red Bull

The S-11 model

How Esports Benefit Society

Reaching Those Who Are Marginalized in Society

Self-Esteem and Esports

Esports & Labor Skills

A Case Study: DGI Esport in Denmark

Q&A with Martin Fritzen

Outro

Introduction

Esports is booming - commercial events, packed arenas, amazing prizes and great shows are becoming the norm! As esports grows we’re seeing a large influx of awesome teams, players, managers, sports psychologists, streamers, casters… and so much more!

People, young and old, male and female, nearly everyone is into computer games in one way or another which is why esports appeals to such a diverse audience.

In Denmark, esports activities are being offered alongside sports like football (soccer), volleyball and swimming in sports clubs. As of January 2020, there are more than 200 traditional sports clubs across Denmark, with more than 7,000 paying members (players), offering esports activities to the community and their local area.

Grassroots esports groups are growing and it is amazing! Every day new players, coaches, managers and sponsors all want to be part of the esports scene. Why don’t you join us? Grab a controller or your mouse and keyboard and come see what grassroots esports is all about.

Why this book?

This book is written for teams, organizations and sports clubs working with esports because running an esports team or organization is difficult and expensive. My mission is to provide a wide range of ideas and ammunition for potential revenue streams so you can develop and run strong, structured, profitable esports teams and organizations.

In 2015, I founded what is now one of the biggest esports organizations in Scandinavia with several teams and coaches, as well as hundreds of paying members and profitable revenue streams. In 2017, I was hired as the Esports Project Manager at Danish Gymnastics and Sports Associations (Danske Gymnastic- & Idrætsforeninger) (DGI). DGI is a sports association in Denmark that works to better the conditions for more than 6,500 member sports clubs and their more than 1.5 million members. My job is to lead a team of 14 people to develop esports activities in the 6,500 sports clubs around Denmark. For the last two years I have heard the same question over and over, “How can we make money to develop and run our esports team or organization?”

It is a fair question, as running an esports team is expensive. Depending on the size and ambition of the organization, you need money to pay for expenses such as salaries, apparel, media and content production, travel and accommodation, tournament fees, software, hardware, gear, sales and marketing. Additionally, you have to consider costs incurred from facilities, rent, utilities, internet, food and that’s just the tip of the iceberg!

This book is a collection of successful experiences and strategies from over 200 esports clubs and organizations in Denmark. I have met and talked to over 100 esport and gaming industry leaders and brands like: Logitech, Microsoft, Red Bull, Razer and Intel, to understand, why and how they do esports partnerships.

This book is designed to give you the blueprint on how to build an esport organization and provide you with an inspirational catalogue of ideas for you to create several profitable revenue streams, and thus, securely manage the operation and development of your esports team, organization or sports club.

The suggestions found in this guide are all based on my personal experiences working to help build grassroots esports in Denmark. All the advice that I give you has been tried and tested for esports organizations of all sizes, and I hope that it will help yours as well.

Key takeaways in this guide:

Develop strong teams and work with great people.

Build a unique mission statement based on your core values and vision.

Set simple and clear goals.

Plan 1, 2, and 3 years ahead.

Reduce your costs.

Understand why your organization is unique and how you can make a difference to partners.

Secure the revenue streams you will need to achieve your goals.

Understand how you make profit and how you scale your business.

Work hard and focus on partnership sales every day.

Be quality-oriented in everything you do.

Continuous development and learning.

Happy Reading,

Martin Fritzen

About the author

Martin knows all about success in esports. He founded what is now one of the biggest esports organizations in Denmark with several teams and coaches, as well as hundreds of paying members and profitable revenue streams. He is now leading esports activities at DGI - a sports association in Denmark that works to better the conditions for more than 6,500 member sports clubs and their more than 1.5 million members.

For the last few years, he has heard the same question over and over, “How can we make money to develop and run our esports team or organization?” This book is based on years of experience building and creating sustainable esports organizations with relevant partnerships, as well as several years of talking with esports organizations and companies sponsoring esports.

“I hope this book will inspire you to think outside the box so you can begin to build profitable revenue streams and achieve your esports dreams, just like so many others.” – Martin Fritzen, 2019.

How to Start, Structure, and Organize an Esports Organization

In Denmark, we have three ways of doing esports. I’ll walk you through each one – it might be of inspiration to you and others.

1. ESPORTS, THE COMMERCIAL WAY

This kind of esports is the “easy” kind; venture capitalists (VCs), businesses, brands and/or individual founders and business owners, combine their skills, experience and capital to create an esports organization. It typically contains at least one esports team, sometimes more.

They form a new business and build a strong brand. To achieve this, they pay for the top players, coaches, trainers and managers. With some of the best players, they can win big tournaments and prize pools thus building a stronger brand while also gaining media coverage of the team which directly results in increased interest spurring new revenue streams – such as bigger partnerships and merchandise sales. This is seen in Denmark with Astralis Group, who works with their brands Astralis, Origen and Future FC. As of December 2019, Astralis Group became the first esports team to launch an initial public offering (IPO).1 Astralis Group went public on the Nasdaq First Growth Market Denmark, offering 16,759,777 shares at 8.95 Danish Krone ($1.33) apiece, according to ESPN’s Jacob Wolf.2Astralis Group may be a pioneer, but launching an IPO can potentially set the precedent for other organizations willing to take the plunge. With esports quickly becoming one of the biggest industries in the world, investing in the scene may seem like a no-brainer. Global esports revenue is expected to hit $1.1 billion this year, marking a 26 percent year-on-year growth, according to a report by research group Newzoo. The 2019 League of Legends World Championship finals peaked at 44 million concurrent viewers, increasing again from previous years. Additionally, Comcast Spectacor and The Cordish Companies put together a $50 million plan to build the “largest new-construction, purpose-build esports arena in the Western Hemisphere” within the Philadelphia Sports Complex.3 The industry is growing rapidly and Astralis Group’s decision to open up shares to the public further cements esports as a titan to rival film, music, and sports.

Even though esports is certainly trending upward, some may be reluctant to invest in the relatively new field. “In this respect it is also our responsibility to help educate the market through a continuous high level of information,” Astralis Group chief executive officer Nikolaj Nyholm told Bloomberg. The Danish organization’s Counter-Strike: Global Offensive team, Astralis, is the top-ranked squad in the world, according to HLTV.4 Astralis Group also owns League European Championship (LEC) team Origen and FIFA’s Future FC. Pros: With many financial resources, you have the advantage to be able to pay for great talent, coaches and trainers, and thus, providing great training and travel experiences.

Cons: One disadvantage to the commercial method is that it takes a lot (a lot) of money and can be hard to build/manufacture a team bond and spirit. It can be difficult to create the cult fan base culture, around the “cold and capitalistic” brand (but possible).

2. ESPORTS, THE EDUCATIONAL WAY

Throughout the world we are seeing more and more educational institutions such as primary and secondary schools, as well as universities and other higher educational institutions provide esports courses and establish teams and clubs. This directly places esports in educational curriculum, and sports programs.

Educational institutions are embracing esports in many ways and experimenting to understand which setup will fit the individual school and its student’s needs. Different schools offer different esports courses, some of which have 200+ students in major classrooms and arenas, with state-of-the-art-gaming setups designed specifically esports activities.

Some institutions with more resources offer advanced esports courses not only in gaming tactics, teamwork, and communication but in more traditional sports focuses such as nutrition, and physical exercise. Some schools have smaller setups with fewer students who bring their own laptops and play together. In these cases, there is not as much technical esports instruction but rather the courses help develop social skills and provide a fun atmosphere. Social gaming is another good option that is also beneficial to a different group of gamers rather than competitive esports.

Pros: Bringing esports into the educational system is great and it will grant both gamers and esports (as a sport), the recognition and strong reputation that is needed to develop even further. This is extremely important in order to attract sponsors and investors, create amazing esports tournaments and events, as well as to develop great talents. Cons: There can be really big differences in the teaching-skills and experience levels across teachers, instructors and coaches. It can also be difficult to create curriculums, as well as finding the funds to operate esports facilities. Which is why every country must have a national esports federation to centralize esports development and provide experienced esports coaches, instructors and teachers.

3. ESPORTS, THE SPORTS CLUB WAY

Right now, esports are tapping into traditional sports clubs across the world.

More and more of the traditional local sports clubs and associations are experimenting with creating esports departments alongside their existing sports operations – and that makes sense!

I am from Denmark, and Denmark might be unique, but I wanted to share a bit more on how Denmark does esports the sports club way. Perhaps it will help you in your city/country.

Volunteers

Without volunteers, there would be no sports in Denmark. The structure of the national federations and grassroots sports clubs in Denmark is democratic. A general meeting is held every year and a president, board members, treasurer, etc. are elected or re-elected every second year. A group of volunteers who appreciate and share openness and joint responsibility work together to run the club. Some of the elite clubs and teams have paid staff but the primary tasks in the local clubs are completed by volunteers.

Sports leaders, coaches and helpers manage the daily duties such as mowing the grass on the football field, laying out the ropes in the swimming pool and gathering members of the club for training or social activities – the same goes for the clubs offering esports. We see volunteer team leaders, game tacticians, streamers, casters, coaches, event crews and managers all work hard voluntarily. But why?

Sports, and esports, attract the kind of people who want to share their love of the sport with new people and generations. They can be sponsors, players, trainers, staff, and other volunteers but in the end, they are involved so that kids across Denmark are able to enjoy esports training, boot camps and tournaments alike. Through the sport and community, kids will also develop as people and gamers. This will help the gamers earn the respect and recognition for their personal development and gaming skills.

Funding

In Denmark a law called, “The Act on Youth and Adult Education” ensures municipal financial aid for leisure time and educational activities such as local sports. It is executed in the form of grants to sports activities and rent for indoor and outdoor facilities. Apart from the financial help from the municipalities, the local clubs are funded through annual or bi-annual membership fees, which are usually quite low.

Sponsors are also commonly used as a source of additional resources and funds.

For everyone

It is very easy to become member of one of the thousands of sports clubs in Denmark. Most clubs offer an introduction period for newcomers to get an idea of how the particular club works so members can become accustomed to the environment (before getting charged a membership fee).

All clubs gladly welcome new members into their “family” at all times of the year. Whether it is to participate and play the sport or just to help out as a volunteer, all people are accepted on equal terms. A simple phone call to the president of the chosen club will provide more information, while you could also reach out to the national federation, who is able to assist finding a local club near you.

Esports also benefits from this mentality. This means that you can visit your local club, chat with a representative and join their esports division. If the local club does not yet offer esports, you can do one of two things: offer to create the new esports division at your local sports club, or find another sports club in the area that already offer esports activities.

Pros: Participating in esports in the traditional sports clubs is smart because you start with a standing structure, an organization, a treasurer, a board, and a location – in essence you’ll have a “home”, a brand name and maybe even a budget.

Cons: There can be huge differences in skill, experience and commitment among the volunteer coaches, trainers, leaders and managers within the esports club’s administration and management. Also finding funds, while possible, is always hard.

4. ESPORTS, THE COMMUNITY WAY

So, you must think I can’t count, but there’s actually a fourth way to esports – by bootstrapping, the old-fashioned way.

This is more gaming-related and takes place when gamers in clans, guilds, or other gaming and esports communities (typically online through an in-game client) join forces, form teams, and start entering tournaments together with friends. You can easily create an esports team with your friends and start going to online or to LAN (local) tournaments and grow from there.

Teams within the community can easily talk to their local sports club and start-up a new esports division if they do not have one already. They can also create a completely new sports club from scratch. This is all because of the “The Act on Youth and Adult Education” law in Denmark that provides the support and gives the community teams the possibility to access facilities and attract economical grants and funds. These benefits are only given to officially registered Danish sports clubs – so you can see the benefit for a “community” team to join with a sports club.

Pros: The community way is an easy and free way to start up a team and join esports tournaments.

Cons: It can be difficult to maintain the team and build structured training. Also, it can be difficult to attract funds and sponsors because you are, essentially, on your own and not a part of a club or brand. Unfortunately, many community esports teams and organizations have started and closed down after only 6 months, because the funding was too thin or the people were too inexperienced to lead and manage a team.

MY FAVORITE WAY

I love that esports is becoming more and more integrated with sports clubs and the educational system. Why? Because my heart beats passionately for “little Michael” or “little Sarah” who love to play games on their computer, phone or tablet.

I especially feel for those who have not been given the proper respect or recognition for their personal growth and/or gaming talent. Fun fact: Defense Command Denmark is testing gamers to see how well they can perform as air traffic controllers, a profession only obtainable for 5% of the population because it is so difficult.

“When we test applicants for education, we focus on spatial intelligence, strategic sense, fast responsiveness and the ability to keep a calm overview even under extreme pressure - and it is, among other things, essential for playing demanding computer games,” says psychologist Jimmi Andreasen, who works in the selection department of the Ministry of Defense’s Personnel Board (FPS).

I am rooting for all the people, organizations and businesses working towards spreading esports in a way that builds confidence, a feeling of self-worth, a sense of meaning in life and friendships among our society.

The worldwide esports scene is thriving and growing as I write this and I am grateful to play a part in it. Esports in schools and sports clubs will build a great talent pool and form a solid organizational structure around esports, while commercial esports will secure top performers from professional teams and players.

1 Credit: Andreas Stavropoulos and dotesports.comhttps://dotesports.com/business/news/astralis-group-launches-ipo-in-denmark

2 Jacob Wolf and ESPN - https://www.espn.com/espn/now?nowId=21-41087451-4

3 Credit: BusinessWire - https://www.businesswire.com/news/home/20190325005511/en/

4 Credit HLTV: https://www.hltv.org/ranking/teams/2019/december/30