Yup it seems like the market wants revenue at the moment, the Alliance deal can revolutionise how esports team operate and obtain reliable recurring revenue. Presently there is two main income streams esport teams get being sponsors which are not always reliable and is impacted by the performance (do they win) and players (Key stars/Tier 1/Notable players) the team is able to obtain.
The other is through prize money, there can only be one winner of the tournament - most tournaments will have prizes for getting other spots however if you get knocked out in round 1 there isn't much given if at all. This is despite the cost of sending the team and the entourage of staff so it can be a loss overall to the business.
What Mogul is doing is giving the teams something that they can directly engage their fans so if they have a bad year by not winning, they can still keep lights on and are not as desperate for a sponsor meaning they could also demand a higher premium for sponsorship as they are not as reliant on them.
However I don't see Mogul being limited to just esports team but also game developers would want to get in on the action too as it makes their games more sticky and players will invest more time and dollars. If we can pretend there is two games identical but one gives players prizes even free prizes such as skins and the other doesn't the players will be gravitating towards the one that runs tournaments and hands out prizes.
ESH Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
