In its (somewhat) early stages of becoming a widely covered sport, esports is especially ripe for investing. Whether it’s investing in esports teams, esports betting, or even just wanting to sponsor esports teams and brands, a lot of companies and individuals alike want to be a part of it. I would too, if it meant my brand had a logo showing at a sold-out Staples Center (it got sold out in an hour). That’s just good publicity.
Investors have seen the writing on the wall and the growing esports market. Events now regularly house tens of thousands of spectators, quarter-million-dollar prize pools, a primetime program on TBS, and a possible spot in the Olympics. Now is the time to jump in, because the scene is going to blow up in the next couple years. And, perhaps unsurprisingly, it’s mostly professional athletes that see the potential here. So if you think esports isn’t a real sport, tell that to Shaq; He’s an investor. Some of the names that are investing in esports may surprise you. Here are five of the most notable investors.
Mark Cuban
Mark Cuban, entrepreneur and host on Shark Tank, has invested in the esports company Unikrn. This is a particularly lucky investment, as Unikrn has its own esports team, and is the leading name in esports betting. Cuban is the owner of several large companies like the NBA's Dallas Mavericks, to mention just one. Last year, Cuban and joined a group of investors to invest $7 million into Unikrn, which was only a startup at the time.
"I only put my name on the companies that I feel will be successful, truly advance an industry, and have a leadership team that I respect," Cuban says. "Unikrn fits all these requirements." At the Intel Extreme Masters, Mark was even seen playing a game of League of Legends. How many football team owners play football? I actually don’t know. When asked by esportsbets.com if he would be buying a professional esports company, Cuban simply said “You’re just going to have to stay tuned.”
Rick Fox
Rick Fox, former Boston Celtics and LA Lakers player, and three-time NBA champion, and star of the HBO drama Oz, bought the League of Legends team Gravity Gaming for $1 million. Fox is a bit of a gamer himself, and saw the huge potential in the esports industry. As a kid, he played all the classic arcade games like Centipede and Galaga, with his father. Now, as a father himself, he has bonded with his son through video games, as well. Particularly, World of Warcraft.
"It's a $750 million business, and in a couple of years it's going to be a $2 billion industry,” says Fox. But for Fox, it’s not all about the money. “It mirrors everything I've experienced in my own professional sport environment, and so after doing enough research and doing my due diligence, I put together a team that's obviously bigger than just myself." The team Gravity Gaming has been rebranded as Echo Fox, after Rick Fox’s own name.
Shaquille O’Neal
Shaquille O’Neal, alongside Alex Rodriguez and Jimmy Rollins, has invested in NRG Esports, a company that has teams in both League of Legends and Counter-Strike: Global Offensive. Shaq and NRG’s chairman, Andy Miller, are actually co-owners of the Sacramento Kings. It was a match meant to be, and Shaq knows it.
Peter Levin (The Nerdist)
If you’re a fan of podcasts, you might be surprised to know that Peter Levin, a large contributor to Nerdist Industries, has invested in The Immortals, a new esports organization that is backed by a powerhouse investing group.
Levin helped Chris Hardwick start Nerdist Industries when Hardwick’s podcast, The Nerdist, was merged with Levin’s GeekChicDaily. If you haven’t heard of Peter Levin, you’ve surely heard of Chris Hardwick, right? He hosts The Talking Dead, for those of you who don’t listen to podcasts.
The Immortals aren’t wasting any time, as they have already acquired Team 8, a League of Legends team. and have sights on Dota 2 and CS:GO, as well.
Machine Shop Ventures (Linkin Park)
Machine Shop Ventures is a group that is also investing in The Immortals, alongside Peter Levin of Nerdist Industries, and Brian Lee, who worked alongside Kim Kardashian.
Machine Shop Ventures is a venture capital that started as a music company in 2012. It is comprised of the members of Linkin Park. Yeah, the band… If you listened to Linkin Park in middle school like I did, you should find this at least mildly interesting. And, I mean, who didn’t?
And this list is just who we know has already invested. If you have business sense and some money to throw around, like these entrepreneurs do, esports teams may not be a “slam dunk.” But there’s a reason wealthy entrepreneurs purchase and invest in regular sports teams—for Cuban, it certainly wasn’t because he thought the Mavericks were going to make him his next billion. But it’s certainly more fun when the stakes are higher, and you’re personally involved.
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