I’ll be honest—I was skeptical at first. The idea of traditional sports organizations, with their long-established legacies, investing in something as new and flashy as esports seemed like a strange marriage. But after diving into it more, it became clear: this trend is more than just a passing phase. It’s a real shift in how the worlds of traditional and digital sports are beginning to collide—and it's not as crazy as it might have seemed at first.
I remember the first time I heard about a traditional sports team stepping into the esports arena. It was around 2018 when the NBA’s Golden State Warriors announced a partnership with Twitch to launch an esports league team. I had to double-check the news to make sure it wasn’t a joke. Why would the Warriors, a team known for their dominance in basketball, care about League of Legends or Fortnite? But looking back, it was actually one of the smartest moves they could have made. Tradesia
What’s Driving the Investment?
Esports has exploded in popularity, and it’s not just for teenagers and gamers anymore. As it grows, more and more people are beginning to see its potential. We're talking millions—sometimes even billions—of dollars being generated through sponsorships, media deals, and brand partnerships. It's a goldmine for anyone with the foresight to get involved.
But what’s driving these investments from traditional sports organizations? First and foremost, it’s the younger audience. I’ve seen it in my own circle. Young people, especially Gen Z and Millennials, are increasingly gravitating towards digital sports rather than traditional ones. This is the first generation where esports viewership is rivaling (and in some cases surpassing) traditional sports. If a soccer team or basketball franchise doesn’t start appealing to this crowd, they risk losing relevance.
How Traditional Teams Are Making Their Move
So, what does investing in esports look like for a traditional sports team? For one, it’s not always about starting from scratch. A lot of teams are forming strategic partnerships with existing esports organizations, leagues, and influencers. For example, Manchester City joined forces with FaZe Clan in 2021 to bridge the gap between football and gaming. And that’s just the tip of the iceberg. Tradesia
The money is another big motivator. I mean, think about it. Esports tournaments are being streamed on platforms like YouTube and Twitch, and the viewership numbers are staggering. The 2023 League of Legends World Championship had over 140 million viewers. That’s more than some of the biggest traditional sports events! As traditional sports teams explore these new frontiers, they’re not just trying to tap into a cool new trend—they’re looking to capture a share of this massive, ever-expanding pie.
Why Branding Matters
And let’s not forget about branding. One thing traditional sports teams are great at is building brand loyalty. They’ve spent decades cultivating relationships with their fans, and esports is no different. By investing in esports, traditional teams can use their name recognition to bring new fans into the fold, while also attracting the younger, more tech-savvy crowd. Take Los Angeles Lakers, for instance. The franchise’s entry into the esports space with Twitch and its Lakers Gaming initiative helped establish the Lakers as a brand that isn’t just about basketball, but also about being part of the modern digital culture.
Overcoming the Challenges
But it’s not all smooth sailing. There are a few bumps in the road when it comes to integrating traditional sports with the esports ecosystem. Esports operates in a much more decentralized way than traditional sports—teams and leagues aren’t always governed by the same kind of structures or regulations. This can make it challenging for sports organizations accustomed to strict regulations and schedules. Also, while esports teams can rake in the viewership, they often lack the stability and predictability of revenue streams that come with traditional sports leagues, like TV rights deals.
Still, these are just growing pains. Traditional sports organizations know how to adapt. They’ve had to, right? The transition from radio to TV broadcasts, the rise of digital media, and the evolving nature of fan engagement have all reshaped the sports world. So, when it comes to esports, it’s no surprise that these organizations are adapting and, in some cases, thriving.
The Future of Sports: Digital and Traditional Together
If there’s one thing I’ve learned through all of this, it’s that the future of sports—whether it's physical or digital—will likely look a lot different than we expect. Traditional sports organizations investing in esports isn’t just about staying trendy; it’s about ensuring their long-term survival in a digital-first world. It’s about meeting their fans where they are, in a space where the next generation of sports lovers is spending their time.
At the end of the day, I think this trend is here to stay. Traditional sports teams are finding ways to expand their brand, diversify their revenue streams, and build relationships with a new generation of fans—no matter if they’re on the court or on the controller.