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Leagues and Governing Bodies

Team-owned esports league garners leverage

Most of the world’s best “Counter-Strike: Global Offensive” teams have pledged to decide together which tournaments to join, giving them extraordinary new leverage over tournament organizers and publishers that could portend rapid changes to the chaotic esports world.

Seven top North American teams announced Sept. 8 that they’ve founded the Professional eSports Association, a team-owned league that will run its own tournament and decide collectively whether to play in others. Four months earlier, seven European teams and tournament operator ESL created the World eSports Association, which made similar promises.

There are important distinctions between the two groups, namely the involvement of ESL with WESA. But together they represent 11 of the top 15 “CS:GO” teams in the world, according to ESL rankings on Sept. 15. Any independent tournament would face grave challenges in selling tickets and sponsorships without meeting the demands of at least one of the two groups, experts said.

Tobias Sherman, global head of esports for WME-IMG, said the PEA’s collective bargaining, so to speak, will give its members the ability to ensure fairness when dealing with tournament operators and publishers alike.

“In my view, that is a requirement to build a sustainable ecosystem that benefits all parties,” said Sherman, who helped create the ELeague, a joint venture with Turner Sports that includes many of the teams in PEA or WESA. “This is an opportunity for the teams as a collective to organize, offer transparency and contribute to the growing stability of esports, which is what the industry sorely needs.”

Tournament operators dictate prize money and competition terms, the most immediate concerns for teams and players. Publishers own the underlying intellectual property and therefore can alter the games at their own discretion and decide whether to license tournaments.

Because “CS:GO” publisher Valve Software takes a laissez-faire approach to licensing competitions, “CS:GO” is the major game of choice for esports startups. As a result, “CS:GO” tournaments crowd the landscape — at least eight pro competitions are scheduled for the rest of 2016 alone, according to a database maintained by Team Liquid. The cluttered “CS:GO” scene taxes teams searching for prize money, leads to fan fatigue and confuses sponsors, experts said.

That situation is forcing teams and fans to choose one league over another, said Dan Ciccone, managing director of rEvXP, an esports consultancy that works with brands and the OpTic Gaming franchise.

“It’s great that more top teams are recognizing the benefits of organized unions,” Ciccone said. “But, on the other hand, it really outlines that Valve is stretching its IP too thin and has so many ‘pro’ offerings that it is becoming very frustrating for pro players, sponsors and the fans.”

Most other major esports game publishers take a more active role in guiding the competition schedule and format.

PEA Commissioner Jason Katz, formerly an executive at publisher Riot Games and streaming site Azubu, said the PEA team owners and players will evaluate a tournament’s compensation structure, its reputation with fans and, in general, how they treat players. Sometimes matches are scheduled just a few days out.

“One of the important things the PEA is going to be able to do, or our franchises are going to be able to do, is to make sure that we have longer lead times given to us by tournament organizers, so we can make appropriate scheduling decisions,” Katz said.

Katz said the PEA expects to work with the Esports Championship Series tournaments, but otherwise did not identify other possible tournaments they’d play in.

New WESA Commissioner Ken Hershman said the group’s goal is not to inhibit players or leagues, and promised to work with event organizers to ensure their members’ continued participation. This week, WESA named members of its players council, which will have a say in association decisions.

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