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Gen.G Is Leading the Highly Competitive Esports Arms Race

Gen.G, which is opening eyes around the industry, owns and fields teams across the world’s biggest competitions in the most recognizable gaming franchises.

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Fans of traditional sports will be familiar with the concepts of facility wars. This is where a college or pro team will invest in the best-of-the-best facilities and equipment in order to attract the top talent, as well as keep that talent performing at their best.

Thanks to some big recent developments, this movement may be spreading across esports. One of the organizations leading the way for this is Gen.G — a global organization with offices and facilities in Seoul, Los Angeles, San Francisco, and Shanghai.

For those unfamiliar, Gen.G owns and fields teams across many of the world’s biggest competitions in the most recognizable gaming franchises — including “Overwatch,” “Overwatch Contenders,” “League of Legends,” “Fortnite,” “PlayerUnknown’s Battlegrounds,” “Heroes of the Storm” and “Clash Royale.”

While Gen.G has a presence in several cities, eyes around the industry for the last month have been focused on its operations in Seoul, South Korea. Gen.G recently unveiled a new seven-floor facility in the Gangnam area of the city that is one of the most impressive ever seen in the space.

Within the new facility, players have access to a training room, a lounge, a gym, a sports psychologist, a streaming room and more. In contrast to what has become the usual esports setup where players live and train in the same building, Gen.G players in Seoul live off-site and commute to this facility. This is done in an effort to allow players time to mentally recuperate in between training sessions. As Gen.G Chief Growth Officer Arnold Hur can attest, player welfare is a top priority for the organization.

READ MORE: Study Confirms Esports Has Graduated to the Big Leagues

“I really don’t understand it when I see other organizations that aren’t as focused on player welfare,” Hur said. “It’s our top priority to make sure that a player can be more successful with us than with any other organization. In any sport, your number-one cost is going to be your talent, your players. Making sure that they’re able to perform at their best should be your biggest investment.

“For us, we feel like we’ve done things that, I think, are pretty innovative and ahead of the curve — whether it’s providing streamer opportunities, providing physical training and a nutritionist, or a sports psychologist on staff, we want them to be the best player they can be.”

Another aspect of Gen.G’s growth can be attributed to its partnerships strategy. Now working with brands like SIDIZ and Razer to give their teams the best equipment, the organization takes the quality over quantity approach with sponsorships and partnerships.

This makes it easier both in terms of activating in meaningful ways and in terms of the players getting acquainted with companies, which, in turn, helps with meaningful relationship building.

“Generally, in the esports market, you have a lot of teams out there that try to fill up as many patches on their jerseys as possible,” Hur stated. “We have to take a bit of a different approach. We try to grab some key partners that really believe in esports that are strategic for us and that we know we do a great job for them in terms of activations.”

With SIDIZ specifically, Gen.G found the partnership attractive because of SIDIZ’s desire to grow with the company on top of the quality of its product.

“We’re great at bringing non-endemic brands into the space. And for SIDIZ, what’s really exciting is that they’re going to make their move into gaming and esports, and we’re going to be a partner that helps them right from the beginning. They want a partner to grow with them. And I think that’s what was really meaningful for us.”

READ MORE: Inside the NFL’s New Partnership With ‘Fortnite’

“The importance of the player’s chair in esports is significantly underestimated from a health and comfort perspective because they spend so much time sitting down. As one of the most advanced chair brands, SIDIZ is the right partner for us,” added Edward Choi, head of marketing, Gen.G Esports. “Together with SIDIZ, we are aiming to supply our teams with the ergonomically designed chairs and create diverse marketing content that promotes both Gen.G and SIDIZ to consumers and gamers alike.”

With another new facility in Los Angeles set to open soon, Gen.G is setting the pace for esports to grow at an even faster rate. Look for more organizations to follow suit soon if they are hoping to compete.

“I think less about ‘are we behind, or are we ahead?’ — and more about moving faster, growing faster, and doing better. In the startup world and entrepreneurship, every single big company will look at a startup’s innovation and think, ‘we’ve got to go copy that.’ They’re better off just focusing on ways that they can make gradual improvements. With the L.A. facility, we’re definitely going to improve on what we’ve seen in the Korea facility side. We take all of these things and continuously and constantly improve on them.”

Joe is currently a freelance marketing professional, writer, and podcaster. His work can also be found on the SB Nation network. Joe earned his bachelor's degree in communications from the University of Louisville in 2014 and a master's degree in sport administration from Seattle University in 2017. He can be reached via email at joe@frntofficesport.com.

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Allied Esports Recognizes Opportunity in Mexico With New Partnership

Partnering with TV Azteca, Allied Esports hopes to tap into an underserved esports market in Latin America, particularly Mexico.

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Photo Courtesy Allied Esports

Allied Esports is seeking to grow its presence in Latin America with a strategic partnership with TV Azteca.

The partnership gives Allied Esports direct access to 95 percent of the Mexican market with TV Azteca’s digital channels and 40 local and regional free-to-air stations. With the partnership, TV Azteca is also launching its newest platform, Azteca Gaming, which will debut Allied Esports’ newest production, “Nation vs. Nation.”

Allied Esports CEO Jud Hannigan says TV Azteca’s position as a broadcast leader in Mexico provides them a great foundation for potential growth in Latin America, a relatively untapped market in the esports industry.

READ MORE: Building on Country Pride, Combate Americas Looks for Big 2019

“We’re excited about this first event in a new format as a kickoff,” Hannigan says. “They’re launching Azteca Esports and we’re coming in with this first event, and have plenty of others planned. They’re the top sports broadcaster in the region, so we couldn’t be more excited.”

“Nation vs. Nation” is the company’s first event and broadcast in Latin America, and it features four U.S. players against a Mexican team of 40 players in PlayerUnknown’s Battlegrounds. A trophy and cash prizes were on the line yesterday in Mexico City.

“The transformation process of TV Azteca, to bring the best television, has led to set an eye in new markets, towards an audience that consumes esports,” says Benjamín Salinas, CEO, TV Azteca. “Sports are part of our strength, and now with esports, we find a way to connect with a growing market in Mexico.”

Broadly speaking, this expansion for Allied Esports encompasses Latin America, but there’s a strategic importance specifically to Mexico, Hannigan notes. The country will be a primary driver of the region’s esports growth in the coming years.

According to eMarketer, Goldman Sachs projects the esports industry will bring in revenues of $2.96 billion in 2022. Latin America will make up $100 million of that.

The article reported the slow growth curve in Latin America is based on a lack of fixed broadband, but significant growth is expected in both Brazil and Mexico. Esports and video game revenue in Mexico jumped from $1.2 million in 2014 to an estimated $10.4 million in 2019 and is projected to rise to $20.3 million in 2022, according to Statista.

“Latin America represents a massive and transformative opportunity for Allied Esports,” says Frank Ng, co-CEO, Ourgame Holdings International – the current owner of Allied Esports. “By combining our live events experience with TV Azteca’s unequaled reach as the No. 1 sports network in Mexico, this crucial esports ecology partnership will be a major driver in building out the offline-online environment at the core of Allied Esports’ global strategy.”

The Allied Esports partnership with TV Azteca comes on the heels of sister company World Poker Tour reaching an agreement with the Latin American broadcaster to carry the poker tour’s library of content in March and develop poker-related products for the region’s audience.

As the World Poker Tour develops its localized content, Hannigan said the partners explored opportunities and landed on looking to grow esports in the region.

READ MORE: Blast Pro Series Debuts in U.S. with Fan Focused Esports Tournament

The approach to Latin America through strategic partnerships will mirror how Allied Esports has tackled other regions of the globe, including Asia, Europe and North America. Along with Latin America, Australia is also in this year’s expansion plans.

“From our perspective, as Allied Esports grows, we’re looking at new regions and to affiliate with strong regional partners,” Hannigan says. “They’re really content-driven partnerships.”

Latin America might lag much of the rest of the world in esports popularity, but with the dearth comes opportunity. At least that’s what Allied Esports is banking on.

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Overwatch League’s First Homestand Weekend Sets the Stage for Geolocation

The Overwatch League’s first Homestand Weekend was a success. But what will happen in 2020 when a special attraction becomes a regular menu item?

Mike Piellucci

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Photo Courtesy: Dallas Fuel

Jiri “LiNKzr” Masalin had his doubts.

The Houston Outlaws player saw the same thing that so many fans, broadcasters and pundits did about the Overwatch League. That no matter how sleek the game design is, no matter who signed on as part of its star-studded ownership group and no matter how much financial muscle Blizzard puts behind the 16-month-old league, it’s future – “The whole premise of the league,” confirms Dallas Fuel owner Mike Rufail – hinges on how successfully it will geolocate its 20 franchises next year for its third season.

The league had its first test run on Saturday and Sunday at the Allen Event Center in suburban Dallas in the first of three “Homestand Weekend” events this season. It would be hard to term it anything other than a rousing success. The arena was filled to its 4,500-person capacity on both days, and the event featured activations from sponsors including Jack in the Box (the Fuel’s jersey sponsor), GameStop, AB InBev, T-Mobile and Omen by HP.

READ MORE: Esports Fashion Levels Up as Esports Continue into Mainstream

But the most impressive feat of all was the environment. With the Dallas Stars’ mascot, Victor E. Green, in attendance, the Fuel’s event staff manufactured an environment that resembled a playoff hockey game more so than any conventional expectations of an esports match, with accouterments like pyrotechnics, a live performance from electronic music artist Karma Fields and a cosplayed version of a dot race – and, crucially, a red-hot crowd.

When it was all said and done, even wary people like Masalin couldn’t help but be impressed.

“As someone who played online throughout most of my career, I was obviously a bit skeptical with everything that would go into this,” he says. “But after being here and feeling the crowd and seeing how the logistics were and just how it feels to be a player in this kind of situation, I was very impressed with what we managed to do on super-short notice, basically. I’m excited for next year instead of skeptical.”

OWL’s now has two chances to replicate it, first in Atlanta in July before heading to Los Angeles in August. But the true questions concern how much of the weekend’s pomp and circumstance will translate across the globe once localized matches aren’t part of a barnstorming tour but instead are featured on the everyday menu in crowded sports markets.

For his part, Rufail isn’t concerned about the Fuel’s prospects. Per the Fuel’s PR team, 77 percent of tickets were sold to Texas buyers, a number suggesting that the foundation of a core audience is already in place. Instead of worrying about regression, he wants to go even bigger when it comes time for the Fuel to choose a permanent home ahead of the 2020 season.

“I would like to see more fans in the seats and test if our fans will come out and sell out a bigger crowd,” he says. “You won’t ever know until you do it, you know? And so that’s the first priority, to see if we can get a bigger crowd.”

Yet the league is fighting a war on two fronts, and only one of them is with conventional sports. The second is with its audience’s consumer habits in a marketplace that shifts at warp speed. Fortnite, for instance, was barely a blip on the radar when the Overwatch League’s first season kicked off last January; now, the battle royale game is a global sensation. Overwatch’s Twitch numbers have also fluctuated, perhaps due to longstanding critiques regarding the gameplay experience going stagnant, chatter that culminated in a viral video by retired pro Brandon “Seagull” Larned – arguably the league’s most recognizable star during its first season – who called the game a “coin flip.” Fewer everyday players could eventually choke off the supply of fresh talent, which in turn could stagnate the league’s ability to mint new stars.

Rufail isn’t worried about that last point, instead pointing out that the majority of NFL fans are hardly active football participants. And, it’s worth noting, any big-picture concerns certainly don’t appear to be putting an immediate damper on growth. Big-name sponsors are continuing to sign on. AB InBev (necessary disclosure: AB InBev is a partner of Front Office Sports) used the first Homestand Weekend to kick off a leaguewide partnership, while GameStop is jumping aboard as a partner of the Fuel. The league’s Twitch numbers are back on the upswing, too, after becoming the livestream platform’s most-viewed account for the month of April. Now, the first Homestand Weekend has given the Overwatch League proof of concept for prospective partners that their product that can be monetized in all the ways traditional sports have been for generations.

READ MORE: Sports World Takes on TikTok as Next Social Media Frontier

“We have great demographic trends,” says the Outlaws’ Jacob “Jake” Lyon. “The only thing esports is missing from a business perspective is all those revenue streams that traditional sports are really relying on, which are ticket revenue, concessions revenue, bringing people into a physical space and making that experience so much richer than it could possibly be online or on television.”

Like his teammate Masalin, Lyon is convinced: Overwatch League – and esports – is here to stay. Last weekend only gave him 4,500 reasons to believe more fervently.

“Anyone looking for a litmus test, ask any fan in the building if they had a good time and if they can get their friends to come next time,” Lyon says.

“I think that’s really all you need to know about the future of esports.”

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Esports Fashion Levels Up as Esports Continue into Mainstream

From Foot Locker to Walmart to Champion to K-Swiss, mainstream brands are getting in on esports fashion as esportswear grows into a lifestyle brand.

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Esportswear is evolving. The rise of livestreaming and franchised endeavors like the Overwatch League have pushed esports into the mainstream, and it only follows that merchandise would move away from simple jerseys and t-shirts into more trendy looks. In a nutshell, esports merchandise has transitioned from a niche into lifestyle wear. And part of that shift into the mainstream is due, in part, to the ease of access. Companies everyone knows are starting to stock up on their offerings, while less widely associated brands are making inroads into the space.

It starts with distribution. Esports jerseys—from the likes of CLG, OpTic, Dignitas, and others—will line the walls of your local Foot Locker alongside NBA and NFL teams hats and shirts. The footwear retailer announced this week that it’s bringing Champion’s esports line to both its online and in-store shelves, with jerseys going on sale as early as today. Elsewhere, fans of the Overwatch League can buy jerseys and gear on Walmart.com, thanks to a major partnership with merchandisers Fanatics.

On the design front, shoe brand K-Swiss is just one of the more mainstream brands jumping into esports merchandise via a partnership with with esports organization Immortals. The deal calls for two shoes: the K-Swiss Icon Knit, which is already available, and a forthcoming performance shoe that’s designed specifically for gamers. K-Swiss global marketing director Patrick Buchanan told Front Office Sports that the performance shoe will be released this year.

“The options are growing, which is exciting for esports fans,” Buchanan said. “Many brands are creating apparel geared towards esports players or using players as ambassadors. This is opening doors and helping players develop and define their style.”

As pointed out last week by the New York Times, player interest in personal style is spreading outward to fans, too. And that’s where esports fashion becomes lifestyle wear, and not just gamer lifestyle wear.

Fans now want more than just a logo slapped on a hoodie, according to Team Liquid creative director Damian Estrada. “Teams that could get by in the past with little to no effort behind their merchandise are now facing the same scrutiny from fans that we see in not only traditional fashion markets, but other places such as tech and entertainment,” he said.

Quality merchandise is changing the way fans choose to support players, too.

“Merch is something fans really take stock of when choosing who to support,” Estrada continued. “Initially, it was all about winning. Then we saw the rise of certain personalities driving fandom. But now people are really looking for the complete package, and merchandise is a huge part of that.”

Estrada said that Team Liquid is still in the infancy of its time as a lifestyle brand. For now, the focus is on being experimental and testing things out. That’s what LQD is—a place for Estrada and his creative team to play with Team Liquid’s merchandise. He described it as a “conceptual vision” of a Team Liquid lifestyle brand. Items in the LQD line are techwear-inspired pieces that come and go, like the LQD19_v1_Hoodie hoodie from January. The exclusivity part of the hoodie plays into its appeal. Not everyone can get it.

Photo Credit: 1Up Studios

“The Basics products would be the best comparison point,” Estrada said. “For Basics, the aim is to have simple and clean Team Liquid products available for anyone anytime. For LQD, we’re taking aim at a certain style or look and firing away. We know not all of our fans will love it, but those who do can expect to see more of unique pieces hitting the store soon.”

Outside of teamwear, Ateyo, founded by Breanne Harrison Pollock and Rachel Feinberg, is looking to become what Forbes called the “Nike of esports.” The company has created a small line of core products: pants designed for sitting and another pair of joggers, a hoodie and pullover, bomber jacket, and a classic, everyday T-shirt. The clothing looks like classic, simple athleisure, but it’s tailored to the needs of gamers.

READ MORE: Full Sail University Anchors Strong Orlando Esports Ecosystem

“A lot of it has to do with temperature control, poster, and comfort,” Pollock said. “But you want to build products for peoples’ lifestyles. They’re going to work. They’re wearing the same sweatshirt they wore to work out to drinks or dinner. Maybe then they’re gaming in it, and again on the weekend they’re going to a tournament or convention. We make clothing that lasts through all of those aspects of people’s lives.”

Like Nike, Ateyo sometimes works with brands, like Team Liquid, for specific lines, like a streetwear-inspired hoodie with Team Liquid’s Yiliang “Doublelift” Peng. They’re creating the solid basics for esportswear to evolve from, which will be important in merchandising to come. They’re also focused on inclusivity and will launch a new women’s line next week Whereas other brands may re-size a “men’s” garment, Ateyo is thinking about it all: fabric, cut, and design.

“Women have been overlooked and under-served in the gaming market,” Pollock said. “Women are a much bigger part of the ecosystem than we give them credit for.”

The strategies and cuts may vary. But, at the end of the day, Team Liquid’s Estrada said it all boils down to one ethos: “The days of being able to grab a shitty white hoodie and slap a logo on the front are over.”

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