The Esports Advocate
Esports business news: deals, legal, and governance.
Documents
ESL FACEIT Group Renews Partnership With SPORT1
The ESL FACEIT Group (EFG) has extended its media rights partnership with the German broadcaster SPORT1 GmbH and its dedicated esports channel, eSPORTS1, for an additional year.
- ESL FACEIT Group (EFG) has renewed its partnership with German broadcaster SPORT1 and its dedicated channel eSPORTS1 for an additional year.
- The agreement covers the broadcast of major ESL-branded tournaments including Intel Extreme Masters, ESL Pro League, ESL One, DreamLeague, and ESL StarCraft II Masters.
- Tournament content will be distributed across SPORT1’s broadcasting and streaming platforms in Germany, featuring commentary in both German and English.
Activision Blizzard CMO Exiting in April to Join NotCo
Fernando Machado, the Chief Marketing Officer of Activision Blizzard, announced his departure from the gaming company effective April 2023.
- Fernando Machado will step down as Chief Marketing Officer of Activision Blizzard in April 2023.
- Machado is moving to the plant-based food company NotCo to serve as its new Chief Marketing Officer.
- Machado served as the CMO of Activision Blizzard for a two-year tenure.
Cloud9 Cuts More Staff
The Los Angeles-based esports organization Cloud9 implemented a new round of staff layoffs in March 2023, marking a continuation of workforce reductions that began earlier that year in January.
- Cloud9 has initiated a new round of staff layoffs, with at least four employees in the content creation and video production departments confirmed to be affected.
- These layoffs follow a previous round of staff reductions that occurred at the organization in January 2023.
- Cloud9 CEO Jack Etienne stated that the organization is in a strong financial position but is actively controlling costs due to a tightening sponsorship market.
VaynerSports Now Represents Cody “Clix” Conrod
VaynerSports has officially signed Fortnite content creator Cody “Clix” Conrod to a representation deal, marking the first time the 18-year-old creator has partnered with an agency.
- VaynerSports has signed 18-year-old Fortnite content creator Cody “Clix” Conrod to a representation deal, marking the first time the creator has worked with an agency in his career.
- Clix brings a significant social media footprint to the agency, including 5.8M followers on Twitch, 2.1M on Twitter, 2.04M on YouTube, and 2M each on Instagram and TikTok.
- VaynerSports aims to leverage its agency infrastructure to expand Clix’s brand and explore new commercial opportunities.
Astralis Shuffles Roles as Commercial Director Kasper Sindt Exits
The Danish esports organization Astralis underwent a significant leadership restructuring in March 2023 following the departure of Commercial Director Kasper Sindt.
- Astralis Commercial Director Kasper Sindt has departed the Danish esports organization after more than two years to pursue a new opportunity.
- Astralis has restructured its commercial leadership by splitting the former director's responsibilities into two distinct roles.
- Mads Rasmussen, previously a senior partnership manager at Astralis since January 2022, has been promoted to the position of sales director.
How Esports Coaching Platform Metafy Handled the Collapse of Silicon Valley Bank
The collapse of Silicon Valley Bank in March 2023 presented an immediate liquidity crisis for Metafy, a Los Angeles-based esports coaching platform that has secured $34.4 million in funding across three rounds.
- During the March 2023 Silicon Valley Bank (SVB) collapse, Metafy VP of Finance and Operations Victor Folmann took immediate, aggressive steps to protect the company's capital and ensure operational continuity.
- Metafy’s mitigation strategy included moving accessible cash holdings to other financial institutions and updating merchant services to redirect payment deposits to new accounts.
- To preserve liquidity, the company suspended all non-essential recurring software services, temporarily removed credit card information from platforms, and initiated negotiations to delay creditor invoices by up to three months.
Silicon Valley Bank Collapse Affects Some Esports and Gaming Companies
The collapse of Silicon Valley Bank (SVB) in March 2023 created significant liquidity concerns for the gaming and esports sectors, particularly for startups reliant on the institution for payroll and operational capital.
- Silicon Valley Bank (SVB) was shut down by regulators on March 10, 2023, following a bank run triggered by a $1.8 billion after-tax loss on its securities portfolio and a failed capital raise.
- Roblox Corporation disclosed in an SEC filing that approximately 5% of its $3 billion in cash and securities—roughly $150 million—was held at SVB as of February 28, 2023.
- Major esports organizations including FaZe Clan, Sentinels, Immortals, XSET, M80, OpTic Gaming, TSM, and Riot Games confirmed they had no financial ties to SVB.
Jon Spector Announces Exit From Blizzard
Jon Spector, a key executive at Blizzard Entertainment, announced his departure from the company effective at the end of March 2023.
- Jon Spector, the commercial leader and VP for Overwatch, is departing Blizzard Entertainment at the end of March 2023.
- Spector joined Blizzard in 2017 after transitioning from a role at the National Basketball Association (NBA).
- During his six-year tenure, Spector served in multiple leadership roles, including a stint as the head of the Overwatch League (OWL) which concluded in 2021.
GameSquare and Engine Gaming Shareholders Approve Business Combination
Shareholders of GameSquare and Engine Gaming and Media have officially approved a business combination, marking a significant consolidation within the esports and gaming industry.
- Shareholders of GameSquare and Engine Gaming and Media have approved an all-stock business combination, with the deal expected to close in the first quarter of 2023.
- Upon completion of the merger, GameSquare shareholders will own approximately 60% of the combined entity, while Engine Gaming shareholders will hold roughly 40%.
- The combined company expects to achieve profitability in 2023, driven by cost synergies, operating leverage, and revenue growth.
The Path: Rafi Huezo and the Origin of OMIT
The profile examines the career trajectory of Rafi Huezo, a former marketing executive who transitioned from corporate roles at Procter & Gamble and Ciroc Vodka to founding OMIT, an esports organization built on the principles of diversity and inclusion.
- Rafi Huezo, a former marketing executive for Ciroc and Procter & Gamble, founded the esports organization OMIT with a core mission to prioritize diversity and inclusion for underrepresented talent.
- OMIT originated from Huezo’s personal experience as a content creator during the COVID-19 pandemic, where he grew a streaming channel to over 10,000 followers and 3,000 subscribers before transitioning into an organization.
- The organization supports its players by providing salaries, equipment, legal services, travel funding, and content production resources to help talent who were previously overlooked or excluded from the industry.
Riot Games Renews HyperX Partnership for Valorant Champions Tour
Riot Games has secured a multi-year partnership extension with HyperX, reinforcing the peripheral brand’s role as a foundational sponsor for the Valorant Champions Tour.
- Riot Games and HyperX have signed a multi-year partnership extension for the Valorant Champions Tour (VCT).
- HyperX, a brand owned by HP, retains its status as the official provider of gaming keyboards, mice, and mouse pads for VCT competitions.
- The agreement covers major global events including VCT Masters Tokyo, VCT Champions, and the Valorant Game Changers Championship.
Karl Jacobs Joins Misfits Gaming Group as an Owner, Creative Director
Misfits Gaming Group has officially appointed content creator Karl Jacobs as an owner and creative director.
- Karl Jacobs has joined Misfits Gaming Group as an owner and creative director, tasked with leading content creation across all company channels.
- Content creator AustinShow has also joined Misfits Gaming Group to serve as a content creator and executive producer.
- AustinShow will lead the relaunch of the production series 'Name Your Price,' which was previously hosted on the now-defunct G4 TV.