Cybersports is a dynamically growing industry, attracting the attention of millions of fans and investors around the world. Every year esports is growing closer to traditional sports, and one of the key factors in its growth is the professional management of teams and organizations. Franchising, taken from the business world, ѕtupnоws increasingly popular in esports.
Franchising is a business model in which a company, also known as a franchisor, grants another company, called a franchisee, the right to use its brand, business model and support for a certain fee or royalty. Franchising allows the franchisee to start and run a business using a proven concept and brand, which reduces risks and increases the chances of success.
In the context of esports, franchising transfers this principle to the management of esports teams and leagues. Franchisors grant the franchisee, i.e. the team, the right to participate in a league or competition under their brand and support. Almost all modern franchises are featured on esports betting sites, which make watching eѕроrtѕive matches even more fun. Franchisees get many benefits from participating in franchises.
In this article, you will learn about what a franchise league is and its prominent representatives in popular esports disciplines, how the franchise model provides financial stability to its members, how franchises affect the global reach of esports organizations, and how franchises affect brand building and sponsorship.
Franchise League Structure
The idea of franchising in еѕроrtѕе has started to gain popularity in recent years, especially with the development of leagues and championships. One of the first successful examples of franchising in esports was the Overwatch League (OWL), launched by Blizzard Entertainment.
Overwatch League
OWL was launched in 2018 as the first league with a franchise model in the еѕроrtѕе. Rather than allowing teams to rise and fall as they do in traditional esports leagues, OWL invited investors and organizations to buy slots, also referred to as franchises, in the league. These franchises provided teams with stability and guaranteed revenue. The fixed number and makeup of participants makes esports betting tips more accurate, which helps to professionalize competitive gameplay. The franchise system has become an effective way to build an esports ecosystem in Overwatch.
The franchise system in the OWL gave teams and players a sense of belonging to a region and brand, which fostered a fanbase. In addition, the league provided teams with the infrastructure and resources to develop the marketing and commercial aspects of their business. This approach has led to sustained growth for the OWL and has become a model for other esports leagues.
League of Legends and Call of Duty League
Developers of other esports disciplines have also taken up the idea of franchising. Riot Games, creators of League of Legends (LoL), announced a move to a franchise system for their local leagues. A similar model, tailored to regions, has also been implemented in the Call of Duty League (CDL).
Financial Stability
Franchising provides teams with a guaranteed income. Franchise owners, better known as franchisors, are obliged to pay royalties and provide financial support to teams. This creates stable sources of income in addition to prize money won.
Franchisors provide teams with support and resources. This may include organizing training camps, marketing events and attracting sponsors. These additional resources help teams expand and monetise their business.
In franchise leagues, there is no danger of dropping out of competition due to poor performance. Teams can focus on their development knowing that they will stay in the league on a long-term basis.
Global Reach
Tournaments in a franchise league can take place in both online and LAN formats, bringing together the best teams in different locations around the world. This allows league participants to be promoted and recognised in very different parts of the world. Also, franchises often feature teams and organizations from different countries, which contributes to the globalization of esports.
In this way, the franchise audience increases and becomes more diversified. This in the future can create more opportunities for advertising contracts and promotion of both the league itself and its individual participants.
And this, in turn, contributes to the global recognition of the esports industry. More and more countries will recognise esports as an official sport, as esports will create demand in countries that were not previously considered potential esports markets.
Brand Building and Sponsorships
Franchising facilitates the development of the team’s brand. Fans can identify with the team as they do in traditional sports leagues. This creates loyalty and increases The International ерes to the competition.
Franchising allows esports leagues to attract investors and attention from around the world. This makes esports more global and opens up new opportunities for growth and development.
Leagues with a franchise model invest in infrastructure. This includes the creation of playing arenas and training centers, which improves conditions for players and helps to professionalize esports.
Conclusion
Franchising is an effective tool for the development and sustainability of esports teams and leagues. It provides financial stability, increases the popularity and nationalization of the league members, the league itself and the esports industry as a whole.
Franchise leagues also help build brands and help attract sponsors. However, it also comes with challenges that require careful management. In the future, it is likely that we will see the franchise model expand to other esports disciplines, which will enhance the professionalism and competitiveness of this exciting industry.
Robert Griffith is a content and essay writer. He is collaborating with local magazines and newspapers. Robert is interested in topics such as marketing and history.