Sponsorship Growth in Esports

The world of Esports has taken major strides in recent years to become mainstream in professional sports. One way to become mainstream is to land big sponsors and partnerships that can help money flow into the sport. With the rise of popularity in Esports, companies and brands have taken notice and began investing in this growing market.

Just to put things into context, let’s look at global Esports revenue growth. In 2020, the annual revenue was 947.1 million U.S. dollars, which is actually lower than the 2019 revenue, taking into account the global impacts of the COVID-19 pandemic these numbers are actually impressive. In 2021, the worldwide Esports market was valued at just over 1.08 billion U.S. dollars, which is an almost 50 percent increase from 2020. The outlook for the global market revenue is projected to grow to 1.62 billion U.S. dollars by 2024 with Asia and North America representing the top Esports markets, and China alone accounting for almost a fifth of the entire market.

via statista.com

With the annual revenue numbers seen above, it’s clear that the Esports industry is growing at a rapid rate. Now let’s take a dive into sponsorship growth in the industry and see what brands are playing a key role in investing in Esports.

Notable Partnerships:

• Enthusiast Gaming & TikTok - Enthusiast Gaming is the largest gaming media platform in North America and the United Kingdom. Partnership with TikTok will include crossovers in content, promotional activity with influencers, social media, and an upcoming video series.

• LCS (League of Legends North American Professional League) & FTX Crypto - This seven-year $210 million deal includes brand promotion during streams/broadcasts. This is one of the largest deals in Esports history.

• PSG Esports & Betway - PSG Esports is the gaming division of French football giant Paris Saint-Germain. The extension of their partnership agreement will make Betway the official principal partner of PSG Esports.  

An interesting note is the increase in partnerships between Esports teams/leagues and Esports betting platforms. Sports betting itself is on the rise and with the growth in the Esports community, this is a new age partnership that could bring in significant revenue for both sides.

With the growth in revenue over the next couple of years in the Esports industry, be on the lookout for more partnerships within Esports from mainstream brands. Sponsors are how the industry will continue to grow and the road has already been paved for increased funding, coverage, and acceptance.