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NBA 2K League sees increased interest in hosting competition

Last year’s competition took place in Indianapolis at The Pavilion at Pan Am.nba

The NBA 2K League has seen its ranks swell to 25 teams for its sixth season, alongside rising franchise valuations, but perhaps a better sign of the league’s growth was the number of interested parties looking to play host to this year’s esports competition.

Sources said the 2K League pitched 15 different clubs across 12 markets on hosting the 2023 season before league officials struck a deal with Monumental Sports & Entertainment, which operates the Washington Wizards, WNBA’s Mystics, G League’s Go-Go and Wizards District Gaming.

The District E venue, which is adjacent to Capital One Arena in D.C. and will host the esports league, is set to open to the public this month, noted Lacey Bruins, senior director of facilities and events for Monumental. The combined bar, restaurant and event space can hold around 500 people, she said.

The league’s season began March 8, featuring 25 teams.

Other markets pitched on hosting for 2023 were Arlington (Texas), Atlanta, Charlotte, Chicago, Cleveland, Indianapolis, Orlando, Philadelphia, Sacramento, San Antonio and Salt Lake City. Ultimately Arlington, D.C., Philadelphia and Indianapolis submitted bids to the league.

For a league still finding its niche within the broader esports community, that’s unexpectedly strong interest from so many large markets. 2K League streaming viewership isn’t yet on par with many non-stick-and-ball esports leagues. But the development is a good indicator as the 2K League looks to mirror competitive selection processes seen around popular first-person shooter games, such as Valve-produced Counter-Strike: Global Offensive or Riot Games-produced Valorant.

The 2K League’s specific set of criteria when determining a host city highlight a stick-and-ball influence — along with some esports-specific seasoning. Any host team must have residency in their home market from February to August, with a stable venue and nearby housing for players. The caliber of facility for competition and a flexible calendar for the months of league play are also key.

Likely helping the NBA’s decision was that Wizards District Gaming has been successful to date, winning two 2K League championships. Monumental also plans to align the 2K League calendar with a number of Wizards games to take advantage of postgame foot traffic and extra eyeballs from fans.

“With this new facility, we’ve been looking at the next phase of the 2K League for us, and that’s focusing on the local and in-person [events],” said Andrew McNeill, senior director, esports, for Monumental.

Interest in hosting the 2K League wasn’t limited to parties with league ties. A joint bid between Visit Philadelphia and Nerd Street Gamers at one point was a leader to host the competition in 2023, according to sources. However, after announcing the Philadelphia selection internally to teams, league officials pivoted, according to sources, with Monumental being the final choice.

Monumental Sports & Entertainment’s new District E venue next to Capital One Arena in Washington, D.C., is hosting this year.monumental sports & entertainment

The 2K League itself remains focused on growth. This year, the league is expanding further internationally with NBL Oz Gaming (with a reported franchise fee of $25 million). The team, which will rep the Australia hoops league, joins the Gen.G Tigers (Shanghai) and DUX Infinitos (Mexico City) as international teams with no direct team affiliation.

Take-Two Interactive CEO Strauss Zelnick, whose company publishes NBA 2K, recently told CNBC’s Jim Cramer that the target for the game’s expansion is now international markets. “There’s plenty of opportunity for growth, and the NBA is very focused on international markets, which I think will drive our growth, because we’re well-penetrated domestically [in North America],” he said.

Much of that domestic penetration comes from the league’s distribution strategy. “The league has done an incredible job of growing from a distribution standpoint, in terms of finding new broadcast partners like NBA TV and Stadium and Bleacher Report,” McNeill said.

And that success has influenced Monumental’s own strategy with the 2K League. “We now own 100% of our RSN, NBC Sports Washington, which ... has distribution into Virginia and Maryland, and all the way up into Delaware, and parts of Pennsylvania,” McNeill said. “Our plan in the coming months and years is to get a lot of Wizards District Gaming content on linear.”

The league, which is streamed on its official Twitch channel, has seen some positive fan conversion metrics as well. Data from the league shows that fans of the league are twice as likely to buy NBA tickets and five times more likely to buy a subscription to NBA League Pass, noted 2K League President Brendan Donohue.

The NBA this season is leaning into the affinity for gaming by promoting the 2K League at its games late in the regular season. Monumental had its “NBA 2K Night” on March 10, with Wizards District Gaming players in attendance and former NBA player Drew Gooden talking up his love of gaming on a recorded video played at the arena. A recent “2K League Takeover Day” featured fans who donned 2K League items and were treated to in-game rewards. The Bucks, Hornets, Magic, Nets and Pacers have hosted or will host similar 2K League Nights until mid-April.

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