In the last fortnight, two of the most renowned CEOs in the esports industry — Lee Trink of FaZe Clan and Nicole LaPointe Jameson of Evil Geniuses — have stepped down from their positions. A number of insiders believe this could be the beginning of an economic restructuring in the esports industry. — Kevin Hitt
Since its inception in 2019, T1 Entertainment & Sports has straddled the line between South Korea and the US, thanks to a partnership between SK Telecom (based in South Korea) and Comcast Spectacor (based in the US). Its operations span from Seoul to L.A. However, given the recent turbulence in global esports markets — especially in North America — the organization has pivoted its focus to Asia.
In December of last year, T1 underscored this new strategy by rebranding its Overwatch League team, the Philadelphia Fusion, as the Seoul Infernal, whose players were already residing and competing in South Korea. According to Joe Marsh, CEO of T1 Entertainment & Sports, they had foreseen a declining influx of venture capital in North America almost two years ago. Recognizing their current success in South Korean esports and the pull of T1’s brand in Asia, they decided to pivot their focus.
The success of T1 can be partly attributed to the cultural perception of esports in South Korea.
In South Korean society, professional gaming is considered a viable and honorable career path. Spectacor Gaming’s President, Tucker Roberts, highlights parental acceptance of esports as a profession as being instrumental in its success. The longevity of esports in South Korea (over 20 years) has resulted in parental support and endorsement.
The cultural attitudes have also elevated esports players to levels of super-stardom often equated with North America’s star athletes. T1’s popularity has consistently grown, especially with the association of Lee “Faker” Sang-hyeok, who has been likened to “the Michael Jordan of esports” and has been part of T1’s successful League of Legends team since 2013.
Roberts also credits the strong connectivity infrastructure in South Korea for their success, emphasizing the ubiquity of gaming devices, which in turn dictate the demographic participation in gaming activities.
Interestingly, what grabbed T1’s attention was South Korea’s PC bang culture (equivalent to a North American arcade), where instead of upright video games, rooms filled with PCs create a more relaxed atmosphere. The government also established the Korean Esports Association to support and streamline competitive gaming on a national level.
T1’s eminent standing has also successfully attracted global sponsorships, including names like Samsung, Nike, Red Bull, Mercedes-Benz, and Hana Bank.
T1 has created a remarkable “Base Camp” in Seoul
While the focus has pivoted to South Korea, T1 still has its sights set on North America. However, content creation has proved more profitable in gaming and esports, even though North American teams continue to excel in high-level competitions.
Roberts cited the recent victory of Evil Geniuses in Valorant as an example of North America’s potential, but he also mentioned the challenges faced by professional players. Using XQC [Félix Lengyel], a former Overwatch League player as an example, Roberts pointed out how players can shift to content creation as a more lucrative career path.
Several prominent NBA figures have partnered with One Up, the on-demand esports tournament provider, to launch the new NBA 2K24 Championship Series, with a $1 million prize pool. The event kicks off on Sept. 23 and will be hosted by 20 NBA players, including Jamal Murray of the Nuggets, Paul George of the Clippers, and Donovan Mitchell of the Cavaliers.
Plans for this event came to fruition during the NBA All-Star festivities in Cleveland in February 2022. The format follows a previously successful event hosted by Charlotte Hornets point guard LaMelo Ball in which the four finalists were flown to Cleveland on a private jet to compete for a $25,000 prize pool.
A host of other NBA players, including Deandre Ayton, Patrick Beverley, De’Anthony Melton, Jalen Brunson, John Collins, Mike Conley Jr., Karl-Anthony Towns, Cade Cunningham, Seth Curry, Andre Drummond, Dorian Finney-Smith, Tyrese Haliburton, Brandon Ingram, Khris Middleton, Terry Rozier, Anfernee Simons, and Andrew Wiggins, are participating. C.J. McCollum, the president of the NBPA and a player for The Pelicans, is also serving as an adviser.
The sponsors for this event are yet to be revealed.
The project is not officially affiliated with the NBA, however, the NBA 2K title has been instrumental in building a rapport between video game players and professional basketball. In fact, statistics reveal that esports league fans are twice as likely to buy NBA tickets and five times more likely to subscribe to NBA League Pass, according to 2K League President Brendan Donohue.
- Dexerto reports that the Valorant players of Evil Geniuses are supposedly being confronted with a decision to either accept significant pay cuts or depart from the 2023 Valorant Champions winning team.