The Esports Advocate
Esports business news: deals, legal, and governance.
Documents
GameSquare Divests Complexity Gaming to Jason Lake
GameSquare has officially divested its esports organization, Complexity Gaming, to an investor group led by the organization’s founder and CEO, Jason Lake.
- Jason Lake, founder and CEO of Complexity Gaming, has acquired the organization from GameSquare for a total consideration of $10.36 million USD.
- The transaction is structured as a three-year seller-financed note of approximately $9.61 million, accruing 3.0% annual interest with a balloon payment due at the end of the term.
- GameSquare divested the asset to resolve potential conflicts of interest arising from its pending merger with FaZe Clan, as both organizations compete in the same esports ecosystems.
Brawl Stars Joins ESL FACEIT Group’s Snapdragon Pro Series
The ESL FACEIT Group (EFG) and mobile game developer Supercell have entered into an expanded partnership, designating the Snapdragon Pro Series Powered by Samsung Galaxy as the official operator of the Brawl Stars Championship for 2024.
- Supercell has partnered with ESL FACEIT Group (EFG) to make the Snapdragon Pro Series Powered by Samsung Galaxy the official operator of the Brawl Stars Championship.
- The 2024 Brawl Stars Championship circuit will feature a total prize pool of up to $2 million USD.
- Supercell plans to introduce a crowdfunding component for the November Brawl Stars World Finals, modeled after the Dota 2 prize pool structure.
Call of Duty League Teams Want More Revenue From Activision Blizzard
Franchised team owners within the Call of Duty League are currently engaged in active negotiations with Activision Blizzard to secure more favorable financial terms.
- Call of Duty League (CDL) team owners are in active negotiations with Activision Blizzard to secure a larger share of in-game item revenue and reduced restrictions on independent sponsorships.
- Current team grievances include an Activision Blizzard policy that mandates an unconditional 50% revenue share from team-generated ticket sales and sponsorships.
- The negotiations are occurring alongside a $680 million antitrust lawsuit filed by OpTic Gaming founder Hector “H3CZ” Rodriguez and professional player Seth “Scump” Abner, which alleges Activision Blizzard operates an illegal monopoly.
ESL FACEIT Group Lays Off 15% of Global Workforce
ESL FACEIT Group (EFG), a prominent global esports tournament organizer and production company, announced a reduction of its workforce by approximately 15% in February 2024.
- ESL FACEIT Group (EFG) has laid off approximately 15% of its global workforce, impacting an estimated 250 to 300 employees.
- The layoffs were announced on February 27, 2024, via a memo from co-CEOs Craig Levine and Niccolo Maisto.
- EFG stated the cuts are intended to increase operational efficiency and integrate the business following the mergers of ESL, FACEIT, Vindex, and Esports Engine.
Savvy Games Group Leaders Make Goodwill Trip to China
Savvy Games Group, a gaming and esports entity backed by the Saudi Arabian Public Investment Fund, recently conducted a high-level delegation visit to China to strengthen international commercial ties and advance the kingdom’s Vision 2030 gaming objectives.
- Savvy Games Group Vice Chairman HRH Prince Faisal and CEO Brian Ward visited China to strengthen commercial partnerships and promote Saudi Arabia as a global gaming and esports hub under the Vision 2030 roadmap.
- The delegation held meetings with government officials and industry stakeholders in Shanghai, Beijing, and Chengdu to strategize for the upcoming Esports World Cup in July.
- Savvy Games Group, which is backed by the Saudi Arabian Public Investment Fund, invested $265 million into the Chinese tournament operator VSPO in 2023, becoming its largest international investor.
Capcom Offers $1M Grand Prize for Capcom Pro Tour 2024
Capcom has announced a $1 million grand prize for the winner of the Capcom Cup XI, the championship tournament for the 2024 Capcom Pro Tour.
- Capcom will award a $1 million grand prize to the winner of the Capcom Cup XI championship, the final event of the 2024 Capcom Pro Tour.
- The Capcom Pro Tour features competitive tournaments for the Street Fighter series, with the 2024 circuit continuing to focus on Street Fighter 6.
- The previous season, Capcom Cup X, featured a total prize pool exceeding $2 million and attracted over 190,000 concurrent viewers on YouTube and Twitch.
GRID Partners With South Korean e-Sports Association
The Berlin-based esports data platform, GRID, has entered into a strategic global partnership with the South Korean e-Sports Association (KeSPA).
- GRID Esports and the South Korean e-Sports Association (KeSPA) have entered a strategic global partnership to integrate official data services into the South Korean esports ecosystem.
- The collaboration aims to align KeSPA’s operations with a framework for sustainable esports growth by utilizing GRID’s data-driven insights and analytics.
- KeSPA serves as the official governing body for 16 esports titles in South Korea, including major industry titles such as League of Legends, Valorant, and PUBG.
Riot Reveals Project L's Official Name: 2XKO
Riot Games has officially rebranded its long-anticipated fighting game, previously known as Project L, as 2XKO.
- Riot Games has officially named its upcoming 2v2 team fighting game '2XKO', formerly known as Project L.
- The title is scheduled for a full release in 2025 on PlayStation 5, Xbox Series S and X, and PC.
- Riot Games will host a playable demo of 2XKO at Evo Japan in April 2024.
Frost Giant Explores Equity Crowdfunding for Stormgate
Frost Giant Studios is gauging community interest in an equity crowdfunding campaign for its upcoming real-time strategy game, Stormgate.
- Frost Giant Studios is gauging community interest for an equity crowdfunding campaign on StartEngine to fund the continued development of its upcoming real-time strategy game, Stormgate.
- The studio is offering a 5% share bonus to early investors who reserve shares during the current 'test the waters' preview period.
- Funds raised through the potential campaign are intended to support a strategic marketing push ahead of the game's scheduled Early Access launch in summer 2024.
Seth “Scump” Abner and Hector “H3CZ” Rodriguez Sue Activision Blizzard
Retired professional Call of Duty player Seth “Scump” Abner and OpTic Gaming founder Hector “H3CZ” Rodriguez have filed a lawsuit against Activision Blizzard in a Los Angeles federal court.
- Retired professional player Seth “Scump” Abner and OpTic Gaming founder Hector “H3CZ” Rodriguez have filed a $680 million lawsuit against Activision Blizzard, alleging the company maintains an illegal monopoly over Call of Duty esports.
- The plaintiffs are seeking treble damages, citing alleged Sherman Act violations and predatory anti-competitive behavior that they claim has harmed both team owners and professional players.
- The lawsuit alleges that Activision forced team owners into involuntary co-conspiracy agreements and restricted player rights, including the ability to secure independent sponsorships and stream non-Activision games.
SteelSeries Partners With CAPCOM CUP X
SteelSeries has secured a partnership with Capcom to serve as the official headset provider for CAPCOM CUP X, the concluding event of the 2023 Capcom Pro Tour.
- SteelSeries has been named the official headset partner for CAPCOM CUP X, the final event of the 2023 Capcom Pro Tour featuring Street Fighter 6.
- The winner of the CAPCOM CUP X Grand Finals, scheduled for February 25, will receive a $1 million USD grand prize.
- All 48 competitors participating in the tournament will use the SteelSeries Arctis Nova Pro headset during the event.
Akshon Media Partners With Evil Geniuses
Vancouver-based content production company Akshon Media has entered into a partnership with the Los Angeles-based esports organization Evil Geniuses to serve as its official media partner for the 2024 calendar year.
- Vancouver-based content production company Akshon Media has been named the official media partner for the esports organization Evil Geniuses for the 2024 calendar year.
- The partnership involves Akshon Media producing content for Evil Geniuses' Valorant Champions Tour (VCT) Americas team, as well as materials celebrating the organization's 25th anniversary.
- Deliverables under the agreement include hype videos, trailers, team photography, and social media content, though financial terms of the deal were not disclosed.