Now that esports is launching a league with an ownership structure similar to those of the NFL and NBA, it faces the same labor questions that major league team sports worked out decades ago, including age limits and free agency.
The Professional eSports Association will begin play in January with team owners who will run the league and a commissioner who will oversee it. One of the first orders of business will be to establish rules and regulations to govern, pay, and acquire and trade players, PEA Commissioner Jason Katz said. Among the standards and rules the league’s founders are discussing include player conduct and player eligibility rules.
“For example, ‘What is the minimum age?’” Katz said. “We are going to work all of that out.”
Jason Lake, owner of the league’s compLexity team, said, “Rules on how players are traded and free agency are topics that we need to get to.”
“All the challenges that traditional sports have faced, as far as dealing with players, trading players, rules inside particular games and how the organizations interact with each other — these are all open for discussion now.”
The PEA promised to give players rights they have never had before — health insurance, financial planning and a 50/50 split of the profits. Other esports talent, including broadcasters (known as “casters” inside the esports industry) and coaches, will also get a piece of the players’ share of profits.
Before the launch of the PEA, the esports teams have participated in events organized by publishers and other outside parties.
Player rights and player representation in esports are in their infancy. There is no union representing the players. Some players are employees of teams and some are independent contractors. The vast majority of players are unrepresented, and few lawyers specialize in the field.
“This is definitely a step in the right direction,” said Ryan Morrison, an attorney who represents hundreds of esports players. (see related story)
Many of the players are young and have spent their lives concentrating on games and not a lot else. Because the money in the esports industry has exploded in recent years, and there are no standards, there have been abuses, Morrison said.
Morrison represents players on six of the seven PEA teams, which each have five players. He does not know what standards and rules the league is planning on making. “Whatever they are I would love to see them,” Morrison said. “I am just glad anyone is looking to make these minimum requirements.”
Lawyers who work with teams and players in other sports say the league could be subject to antitrust lawsuits if the owners negotiate restrictions to free agency or player eligibility, among other things.
The existence of a union helps provide protection from such lawsuits, because a labor exemption under antitrust laws prevents employees from filing lawsuits over issues that are collectively bargained by their union.
“If a union agrees to certain things there will be an argument that the labor exemption applies, so there would be no antitrust liability,” said Mark Levinstein, a partner at law firm Williams & Connolly.
“If there is not a union, there will not be a labor exemption if an antitrust challenge is filed. However, just because there is no labor exemption does not mean that an age limitation is unlawful.”
Katz said the league owners have met with some players and will seek the players’ input as they make rules.
Both Lake and Katz said they are not opposed to the players forming a union to negotiate the rules.
“Really, it’s up to them,” Katz said. “Obviously, it’s easier to negotiate with individual representatives, whether it’s just reps who are chosen by the players or if there are official union reps.”
