704Games is debuting a new video game and esports competition this week, two elements of a growth plan fueled by a seven-year extension with NASCAR and a new investor in Motorsport Network.
704Games President Ed Martin said Motorsport’s investment will provide worldwide media opportunities and esports know-how for the Charlotte-based company. The extension from NASCAR Team Properties carries 704Games’ exclusive rights as the console simulation-style gaming licensee from 2022 through 2029, and adds new esports rights.
“Funding is a nice thing to have, but we were OK,” Martin said. “We did want to grow more, but instead of going out to existing investors, we needed someone who had strategic value to it beyond just money.”
Motorsport has also taken over web development for 704Games. The size of its investment was not disclosed.
704Games was familiar with Motorsport CEO Colin Smith from his prior role as vice president of NASCAR Digital Media.
“Their interest in esports is exciting, but the really cool piece is the international reach,” Martin said. “NASCAR is a very U.S.-centric sport, our game is primarily sold here, but it does surprisingly well overseas, and it’s just an area that we haven’t been able to put a lot of resources behind.”
704Games CEO Paul Brooks, a former top NASCAR executive, negotiated the deal with Martin and Smith. 704Games’ other investors include HC2 Holdings, PlayFast Games, Leo Capital Holdings and Gaming Nation.
Blake Davidson, NASCAR vice president of consumer innovation, said the sanctioning body granted 704Games the extension because “for Motorsport Network to make that investment into 704Games, they needed to have a long runway to feel comfortable.”
The esports competition that 704Games will announce this week is called “NASCAR Heat Champions” and will involve holding a weekly qualifying event online starting this year during the first week of the 10-race NASCAR playoffs in September. The nine winners will receive a trip to the season finale at Homestead-Miami Speedway, where they will compete for $10,000.
Martin said 704Games is looking at launching a subscription-based tournament next year for more advanced gamers, while keeping a free version.
704Games is launching its third-generation “NASCAR Heat 3” game this week. Upgrades include an improved career mode and the addition of a dirt-track series.
Last year’s “NASCAR Heat 2” sold mid-six-figure units across all platforms. The company has double-digit growth expectations this year that are being corroborated through presale orders.
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