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Esports strategies of sport clubs
Ivan Bulavka, Head of Dynamo Kyiv Esports
(CNP-Esports)
v4 Future Sports Festival
March, 2018
Content
1. Sport clubs presence in esports
2. Esports spin-offs of leagues & federations
3. Cooperation with game publishers
4. Key drivers to enter esports
5. Strategic choices
6. Takeaways
2
Sport clubs presence in esports
3
● Started 2015 it becomes mainstream in 2018
● European football clubs are the most involved
● More sports join this season
2015
efcdk.com
cnp-esports.com
Sport clubs presence in esports
● Started 2015 it becomes mainstream in 2018
● European football clubs are the most involved
● More sports join this season
4
efcdk.com
cnp-esports.com
Sport clubs presence in esports
● Started 2015 it becomes mainstream in 2018
● European football clubs are the most involved
● More sports join this season
5
efcdk.com
cnp-esports.com
Esports spin-offs of leagues & federations
● Open competitions under sport league brand
○ TAG Heuer Virtual Bundesliga (Germany)
● Esport divisions for esports players of the clubs only
● Mixed (pro and amateur players)
6
efcdk.com
cnp-esports.com
Esports spin-offs of leagues & federations
● Open competitions under sport league brand
● Esport divisions for esports players of the clubs only
○ Edivisie (Netherlands)
● Mixed (pro and amateur players)
THE OFFICIAL EREDIVISIE FIFA 18 ULTIMATE TEAM COMPETITION
7
efcdk.com
cnp-esports.com
Esports spin-offs of leagues & federations
● Open competitions under sport league brand
● Esport divisions for esports players of the clubs only
● Mixed (pro and amateur players)
○ RPFL Cyberfootball league (Russia)
8
efcdk.com
cnp-esports.com
Cooperation with game publishers
● Exclusive esports licenses by leagues/federations
○ Football is the only sport with 2 esports game titles
● Sport club esports player only tournaments/divisions
9
efcdk.com
cnp-esports.com
Cooperation with game publishers
● Exclusive esports licenses by leagues/federations
● Sport club esports player only tournaments/divisions
10
efcdk.com
cnp-esports.com
Key drivers to enter esports
● Threats
○ Sport fans are getting older (+10y)
○ Low reach & engagement of the young audience
● Opportunities
○ Brand
○ Overlap between sport and esports audiences
○ Growth and potential size of esports market
11
n/a n/a
n/a
n/a
n/a
32
efcdk.com
cnp-esports.com
Key drivers to enter esports
● Threats
○ Sport fans are getting older
○ Low reach & engagement of the young audience
● Opportunities
○ Brand
○ Overlap of sport and esports audiences
○ Growth and potential size of esports market
12
efcdk.com
cnp-esports.com
Strategic choices
● Discipline
✓ Sport simulators (Tier 3) VS Top esports games (Tier 1)
● Squad
● Operational set-up
● Brand positioning
● Range of activities
● Commercial model
13
Tier 1
Tier 2
Tier 3
efcdk.com
cnp-esports.com
Strategic choices
● Discipline
● Squad
✓ Young talents VS Professionals
● Operational set-up
● Branding
● Range of activities
● Commercial model
14
CS:Go
tier 1 player
monthly salary:
$4,000..10,000
efcdk.com
cnp-esports.com
Strategic choices
● Discipline
● Squad
● Operational set-up
✓ Own organization VS Contract/License
● Branding
● Range of activities
● Commercial model
15
Esports organisation partnership In-house Contracting management company
efcdk.com
cnp-esports.com
Strategic choices
● Discipline
● Squad
● Operational set-up
● Branding
✓ Integration VS Attribution
● Range of activities
● Commercial model
16
Football
Esports
efcdk.com
cnp-esports.com
Strategic choices
● Discipline
● Squad
● Operational set-up
● Branding
● Range of activities
✓ Pro esports VS Fan engagement
● Commercial model
17
efcdk.com
cnp-esports.com
Strategic choices
● Discipline
● Squad
● Operational set-up
● Branding
● Range of activities
● Commercial model
✓ Profit center VS Cost center
18
efcdk.com
cnp-esports.com
Takeaways
★ Esports is becoming mainstream for sport clubs
★ Immature and dynamic esports ecosystem
○ Material risks have to be accepted and managed
○ Limited planning horizon requires lean and prompt management
★ Strategic opportunity for sport clubs: exclusive positioning
in professional esports ecosystem
○ Requires high level of cooperation between sport clubs
○ It’s a momentum which might be gone soon
★ Main esports alternatives for sport clubs
A. ‘Marketing project’
B. ‘Strategic investment’
C. ‘Venture Capital investment’
19
efcdk.com
cnp-esports.com
20
Thank you!
efcdk.com
cnp-esports.com
Ivan Bulavka
Head of Dynamo Kyiv Esports
(CNP-Esports)
efcdk.com
cnp-esports.com
ivan.bulavka@efcdk.com

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Esports strategies of sport clubs (v4 Future Sports Festival, March, 2018)

  • 1. Esports strategies of sport clubs Ivan Bulavka, Head of Dynamo Kyiv Esports (CNP-Esports) v4 Future Sports Festival March, 2018
  • 2. Content 1. Sport clubs presence in esports 2. Esports spin-offs of leagues & federations 3. Cooperation with game publishers 4. Key drivers to enter esports 5. Strategic choices 6. Takeaways 2
  • 3. Sport clubs presence in esports 3 ● Started 2015 it becomes mainstream in 2018 ● European football clubs are the most involved ● More sports join this season 2015 efcdk.com cnp-esports.com
  • 4. Sport clubs presence in esports ● Started 2015 it becomes mainstream in 2018 ● European football clubs are the most involved ● More sports join this season 4 efcdk.com cnp-esports.com
  • 5. Sport clubs presence in esports ● Started 2015 it becomes mainstream in 2018 ● European football clubs are the most involved ● More sports join this season 5 efcdk.com cnp-esports.com
  • 6. Esports spin-offs of leagues & federations ● Open competitions under sport league brand ○ TAG Heuer Virtual Bundesliga (Germany) ● Esport divisions for esports players of the clubs only ● Mixed (pro and amateur players) 6 efcdk.com cnp-esports.com
  • 7. Esports spin-offs of leagues & federations ● Open competitions under sport league brand ● Esport divisions for esports players of the clubs only ○ Edivisie (Netherlands) ● Mixed (pro and amateur players) THE OFFICIAL EREDIVISIE FIFA 18 ULTIMATE TEAM COMPETITION 7 efcdk.com cnp-esports.com
  • 8. Esports spin-offs of leagues & federations ● Open competitions under sport league brand ● Esport divisions for esports players of the clubs only ● Mixed (pro and amateur players) ○ RPFL Cyberfootball league (Russia) 8 efcdk.com cnp-esports.com
  • 9. Cooperation with game publishers ● Exclusive esports licenses by leagues/federations ○ Football is the only sport with 2 esports game titles ● Sport club esports player only tournaments/divisions 9 efcdk.com cnp-esports.com
  • 10. Cooperation with game publishers ● Exclusive esports licenses by leagues/federations ● Sport club esports player only tournaments/divisions 10 efcdk.com cnp-esports.com
  • 11. Key drivers to enter esports ● Threats ○ Sport fans are getting older (+10y) ○ Low reach & engagement of the young audience ● Opportunities ○ Brand ○ Overlap between sport and esports audiences ○ Growth and potential size of esports market 11 n/a n/a n/a n/a n/a 32 efcdk.com cnp-esports.com
  • 12. Key drivers to enter esports ● Threats ○ Sport fans are getting older ○ Low reach & engagement of the young audience ● Opportunities ○ Brand ○ Overlap of sport and esports audiences ○ Growth and potential size of esports market 12 efcdk.com cnp-esports.com
  • 13. Strategic choices ● Discipline ✓ Sport simulators (Tier 3) VS Top esports games (Tier 1) ● Squad ● Operational set-up ● Brand positioning ● Range of activities ● Commercial model 13 Tier 1 Tier 2 Tier 3 efcdk.com cnp-esports.com
  • 14. Strategic choices ● Discipline ● Squad ✓ Young talents VS Professionals ● Operational set-up ● Branding ● Range of activities ● Commercial model 14 CS:Go tier 1 player monthly salary: $4,000..10,000 efcdk.com cnp-esports.com
  • 15. Strategic choices ● Discipline ● Squad ● Operational set-up ✓ Own organization VS Contract/License ● Branding ● Range of activities ● Commercial model 15 Esports organisation partnership In-house Contracting management company efcdk.com cnp-esports.com
  • 16. Strategic choices ● Discipline ● Squad ● Operational set-up ● Branding ✓ Integration VS Attribution ● Range of activities ● Commercial model 16 Football Esports efcdk.com cnp-esports.com
  • 17. Strategic choices ● Discipline ● Squad ● Operational set-up ● Branding ● Range of activities ✓ Pro esports VS Fan engagement ● Commercial model 17 efcdk.com cnp-esports.com
  • 18. Strategic choices ● Discipline ● Squad ● Operational set-up ● Branding ● Range of activities ● Commercial model ✓ Profit center VS Cost center 18 efcdk.com cnp-esports.com
  • 19. Takeaways ★ Esports is becoming mainstream for sport clubs ★ Immature and dynamic esports ecosystem ○ Material risks have to be accepted and managed ○ Limited planning horizon requires lean and prompt management ★ Strategic opportunity for sport clubs: exclusive positioning in professional esports ecosystem ○ Requires high level of cooperation between sport clubs ○ It’s a momentum which might be gone soon ★ Main esports alternatives for sport clubs A. ‘Marketing project’ B. ‘Strategic investment’ C. ‘Venture Capital investment’ 19 efcdk.com cnp-esports.com
  • 20. 20 Thank you! efcdk.com cnp-esports.com Ivan Bulavka Head of Dynamo Kyiv Esports (CNP-Esports) efcdk.com cnp-esports.com ivan.bulavka@efcdk.com