The second annual esports survey was produced by Foley and Lardner LLP and The Esports Observer to show the upcoming industry that the investors are “jumping in.”
Investments are set to rise in esports, says study
Training investors like private equity and venture capital companies as well as traditional sports teams and industry participants are expected to increase investment. The growth of revenue is likely to be driven by sponsorships and publicity, as well as by buy-in and media rights.
The study asked 204 experts from esports, mainstream athletics, press and organisations. 47 per cent of those called for foreign investments to rise as a sign of maturity for the sector compared to 39 per cent in the survey last year. 47% do expect that the financial participation of the industry will rise in sports teams and leagues, as well as sports athletes and celebrations.
“The growing presence of private equity and risk capital funds is a clear sign that traditional investment companies believe in innovation of space and have made the financial determination that esports today form part of the cultural heritage,” says Bobby Sharma, a law firm partner at the Foley and the Lardner’s Sports & Entertainment Company.
Sharma says “The opportunity for investors is betting on, given the huge scope of the worldwide competing market for video gaming.”
51% of respondents to the survey also expect marketing and sponsorship deals to drive growth in sports income, up from 41% last year.
The report shows that the esports industry is continuing to increase and develop. And the industry will continue to attract foreign interest, as revenues increase and the number of esports fans grow rapidly year-on-year. It also offers information of risks to business with the number one issue of theft and matching.
It is likely that sport bodies are already working to step forward and maintain credibility in sport. Many international gaming industry associations have just published a series of’ Fair Play Standards.’