ESI: Understanding the Dynamics of Esports to Build Strong Sponsorships

As esports continues to grow, potential partners are increasingly attracted to sponsorships with top teams and organizations, but they also need to understand the dynamics of the sector, according to two industry experts.

Discussing law and sponsorship in esports with Kerry Vannanen from Esports Insider , Michelle Tierney , director of commercial partnerships Guild Esports, and Brian Anderson , partner Sheppard Mullin , analyzed the legal aspects and dynamics of esports sponsorship.

Referring to the esports sponsorship and rights deal process, Tierney argued that the sector is constantly evolving and understanding brand needs is essential to forging effective partnerships.

“I think some of the key questions that we've had are really trying to figure out what the brand needs up front and really trying to work around all the issues that you might have in order to create this rights package,” she began.

“There are rights that develop every day in sport, there are new ways to step up, new things to pack. It's really about trying to fit everything around the interface slot and understanding the brand, what their needs are and how you can help solve some of the problems we might run into to really make sure you identify the right package you are. obviously, you can then put it in the full form."

Discussing the differences between traditional sports and esports sponsorship arrangements, Tierney added that traditional sports sectors have a more corporate outlook, while esports deals involve multiple dynamics and levels.

“I think the biggest difference compared to the traditional sports understanding is that with deals like this you are dealing with rights holders, while in esports, especially within an organization, you are also dealing with people, your contractual rights before players and content creators, there is a big risk involved.

“Brands that are traditionally present in spaces that are used to dealing with sponsorship, or even those who have just started sponsoring, rightly so, they want to avoid risk as much as possible when making a deal with a copyright holder.

“We're learning a lot, and I think we're starting to get more flexible in that if that's the demographic that we want to work with and target, there has to be an understanding that it's kind of a different path. approach the contract and take risks for so long.”

Based on Tierney's comments, Anderson agreed that esports sponsorship agreements are very different from traditional sports due to brand identity.

“There are different rights in esports and I think the brand can partner with someone like Guild and others to help them understand that,” he remarked.

“A lot of traditional brands come here with very traditional ideas of what sponsorship will look like and may not even understand all the possibilities that are available to them and the unique ways to interact with consumers through esports. ”

He added: “When you make a deal with Arsenal Football Club, you have a good understanding of what Arsenal owns and controls and what you can do with them. But in esports, someone owns the rights to the game, someone owns the rights in the leagues, the players have their own individual rights, which in the US are called publicity rights.”

Source - Esports Insider channel on YouTube

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