The Esports Advocate
Esports business news: deals, legal, and governance.
Documents
Bleed Esports Removed From Valorant Champions Tour, VCT Pacific
Riot Games has officially removed the Southeast Asia-based organization Bleed Esports from the Valorant Champions Tour (VCT) and VCT Pacific.
- Riot Games has removed Bleed Esports from the Valorant Champions Tour (VCT) and VCT Pacific for failing to meet the requirements of the team participation agreement.
- Boom Esports has been selected to replace Bleed Esports in the VCT Pacific league.
- Bleed Esports has faced ongoing allegations of failing to pay players on time, with reports indicating that team members were notified of their removal only 30 minutes before the public announcement.
Adam Apicella Joins ESL FACEIT Group as SVP of Esports: North America
Adam Apicella has been appointed as the Senior Vice President of Esports for North America at the ESL FACEIT Group (EFG), effective October 2024.
- Adam Apicella has been appointed as the Senior Vice President of Esports for North America at ESL FACEIT Group (EFG), effective October 3, 2024.
- Apicella previously served as the co-founder and president of Esports Engine, a company he departed following its acquisition by EFG in March 2023.
- The appointment reunites Apicella with EFG leadership, including Craig Levine, Niccolo Maisto, and Sebastian Weishaar, after more than 20 years of professional association.
Under the Hood: IESA’s Gaming Fund
The Israeli Esports Association (IESA) launched its Gaming Fund in April 2024 to foster grassroots esports development within Israel.
- The Israeli Esports Association (IESA) launched a Gaming Fund in April 2024 to provide financial support for grassroots esports initiatives, including community Discord servers, academic institutions, and small tournament organizers.
- The fund provides direct prize money to winning players ranging from $100 to $250 per tournament, while also offering 'persistence prizes' of up to $100 to any player who competes in at least four IESA-affiliated tournaments per season.
- Selected organizers supported by the fund receive the rights to host qualifier competitions for national teams participating in events hosted by the International Esports Federation, Global Esports Federation, and eFIBA.
Huya Reduces League of Legends Esports License Fees
Huya Inc. has secured a significant reduction in its licensing fees for broadcasting League of Legends esports content in mainland China.
- Huya has renegotiated its League of Legends broadcasting license with TJ Sports, reducing the total fee for 2024–2025 from ¥300M ($42.8M) to ¥230M ($32.8M).
- The license fee reduction follows a significant decline in Huya's financial performance, with live-streaming revenues dropping 21.3% from ¥8.2B in 2022 to ¥6.5B in 2023.
- Under the terms of a January 2023 agreement, Huya’s broadcasting rights for League of Legends matches were downgraded from exclusive to non-exclusive, and the company lost its sub-licensing rights.
Allied Gaming & Entertainment Faces Shareholder Dispute Amid Expansion Plans
Allied Gaming & Entertainment (AGAE), an experiential entertainment company specializing in esports and gaming, is currently navigating a significant shareholder dispute with Ourgame International Holdings Limited.
- Allied Gaming & Entertainment (AGAE) is facing a formal shareholder dispute from Ourgame International Holdings Limited, which has issued a legal letter challenging recent board and management decisions.
- AGAE reported a net loss of $3.9 million for Q2 2024, a significant decline compared to the $0.7 million loss recorded in the same period of 2023.
- Total revenue for Q2 2024 was $2.6 million, representing an 11% sequential increase but a 19% decrease year-over-year, largely due to a $2.0 million drop in branded content production revenue.
Esports Integrity Commission Partners With MOONTON and ESL FACEIT Group
The Esports Integrity Commission (ESIC) has formalized new strategic partnerships with MOONTON Games and the ESL FACEIT Group to bolster competitive fairness within the global esports ecosystem.
- The Esports Integrity Commission (ESIC) has entered into a partnership with MOONTON Games to collaborate on integrity policies, risk management, and the identification of emerging threats in mobile esports.
- As part of the agreement, MOONTON Games will join the ESIC Publisher Committee to assist in the development of industry-wide integrity standards.
- ESL FACEIT Group has been named the presenting partner for the 2024 ESIC Global Esports Summit (EGES).
VSPO to Host its Esports Asian Champions League in China
Chinese esports operator VSPO has announced plans to host the Esports Asian Champions League (ACL) in China in 2025.
- Chinese esports operator VSPO announced it will host the Esports Asian Champions League (ACL) in China in 2025.
- The ACL will operate under a dedicated foundation, with VSPO co-founder Wang Xinyi serving as CEO and co-founder Xie Fan as president.
- The league is positioned as a partner to the Esports World Cup (EWC), with HRH Prince Faisal serving as honorary president and discussions underway regarding the ACL serving as an Asian qualifier for the EWC.
Tencent’s King Pro League Grand Finals to Feature $10M Prize Pool
TiMi Studio Group, a subsidiary of Tencent, has announced that the King Pro League (KPL) Grand Finals will feature a total prize pool of ¥70 million, approximately $9.92 million USD.
- Tencent’s King Pro League (KPL) Grand Finals will feature a total prize pool of ¥70 million (approximately $9.92 million USD), with the winner receiving ¥22 million ($3.1 million).
- The event is scheduled to take place from October 2 to November 16, 2024, with the Grand Finals hosted at the 68,000-capacity Beijing Worker’s Stadium.
- This $10 million prize pool potentially positions the KPL Grand Finals as the highest-paying single esports tournament of 2024, surpassing the $5.05 million prize pool of the Dota 2 Riyadh Masters.
Sources: IESF Board Held Vote to Cancel WEC 2024
The International Esports Federation (IESF) board recently held an impromptu meeting to vote on the cancellation of the 2024 World Esports Championship (WEC 2024), which is scheduled to take place in Riyadh, Saudi Arabia, in November.
- The International Esports Federation (IESF) board held an impromptu, unannounced meeting on September 10, 2024, to vote on a proposal to cancel the World Esports Championship (WEC 2024) scheduled for November in Riyadh.
- The proposal to cancel the event was initiated by IESF President HRH Prince Faisal, who also serves as the founder of the Saudi Esports Federation.
- The IESF board ultimately voted against the motion to cancel the WEC 2024, which features a $1 million USD prize pool.
Riot Details Tier-1, Tier-2 Format for Americas League
Riot Games has unveiled the structural framework for the new Americas League, a consolidated professional League of Legends ecosystem launching in 2025.
- Riot Games is consolidating the LCS, CBLoL, and LLA into a single 'Americas League' starting in 2025, featuring a new structure of North and South conferences.
- The North Conference will consist of eight teams, comprising six existing LCS teams, one LLA team, and one guest spot for a Tier-2 team, with matches hosted at the Riot Studios in Los Angeles.
- The Tier-1 season will feature three splits, with the first split utilizing a 'Full Fearless Draft' format and the final split determining three slots for the Worlds tournament.
Patron Reveals $100M USD Fund II
Patron, an early-stage venture capital firm, has officially launched its second investment vehicle, Fund II, totaling $100 million USD.
- Venture capital firm Patron has raised $100 million for its second fund, aimed at supporting early-stage startups in the gaming and technology sectors.
- Patron has already deployed capital from the new fund into four undisclosed startups.
- The fund is backed by institutional investors, including sovereign wealth funds, university endowments, and family offices, alongside prominent individual investors such as Marc Andreessen and Garry Tan.
CORSAIR Set to Acquire Fanatec Sim Racing
CORSAIR has entered into a definitive agreement to acquire the Fanatec Sim Racing product line from Endor AG.
- CORSAIR (Nasdaq: CRSR) has signed a definitive agreement to acquire the Fanatec Sim Racing product line from Endor AG.
- The transaction, for which financial terms were not disclosed, is expected to close imminently.
- As part of the acquisition, CORSAIR will retain the existing Endor AG employees who manage and operate the Fanatec product line at the company’s headquarters in Landshut.