If you’re planning to take part in esports, you’ll be entering an industry worth billions. According to data on the website of consumer and market data company Statista, the global esports market is predicted to hit $4.3 billion in revenue. 

Like all other sports, the industry has famous tournaments. The ESL CS:GO, ESL ONE DOTA 2, the League of Legends World Championship, and The International are all well-known tournaments within the industry. If you specialize in the games played at them, they’re the tournaments you want to win. 

Of course, besides the excitement of esports, investment and sponsorship are among the reasons the industry has thrived. Below is a look at sponsorship and investment in the industry and its impact on esports.

Finding sponsors 

The growth of esports has caught the attention of brands looking to increase their visibility and get their name in front of vast audiences. Major opportunities include:

• Competition: sponsoring a team or a tournament
• Marketing: working together with investors and sponsors to generate a buzz on social media and traditional media about their brands
• Training: sponsoring gaming centers where the best gamers are seeking training and guidance
• Live streaming platforms: investing in streaming platforms like Twitch can be a lucrative investment
• Merchandising: esports brands collaborate with sponsors to expand into clothing and other merchandise
• Gaming tech: competitive gamers want tech that meets their demands, which provides an opportunity for investors. 

When it comes to acquiring investment or sponsors, operators in the industry have different ways of finding sponsors.

Pitching 

Lots of companies are realizing just how big esports is growing and want to get their slice of the benefits, which is why they’re willing to sponsor esports organizations or businesses and related ones. There’s a chance they’ll reach out to relevant people, businesses or organizations in the industry or in related industries. 

Unfortunately, not all companies willing to sponsor esports in some form or capacity are going to approach the team or other entity wanting sponsorship. That means the people requiring the sponsorship are going to have to reach out and pitch for it. Some start the ball rolling by attending networking events. Some use their contacts in a brand. Some just get on the phone and start a conversation. 

Affiliate deals

Affiliate deals are another way of achieving sponsorship in the industry, often at the grassroots level or semi-pro level. Businesses will partner up with a team and supply them with equipment either for free or at a discount. In exchange, the team will promote them. These are unlike standard sponsorship deals and may include revenue sharing. 

Big esports deals

Esports has attracted some sponsorship deals from some big, big names.

Mercedes-Benz partners with T1

In 2023, the South Korean branch of the automobile brand Mercedes-Benz teamed up with the country’s esports organization T1 until at least 2025. The organization’s League of Legends team wear the brand on their jerseys. As part of the deal, T1 shareholder and superstar Lee “Faker” Sang-hyeok is reported to have received an EQE car from the brand. Whether it’s his to keep or not is unclear.

Red Bull invigorating the esports landscape

Since 2013, Red Bull has been one of the pioneers of esports sponsorship. The company has formed partnerships with OG (DOTA 2), T1 (League of Legends), and G2 (CS:GO). Interestingly, the company’s sponsorship is more holistic, stretching beyond financial and also concerning itself with the mental, physical, and nutritional well-being of the esports athletes. 

Red Bull doesn’t stop there. It’s sponsored household name-type events, including Red Bull Battle Grounds, Red Bull Battle Grounds, and some major League of Legends tournaments. Through its sponsorship, Red Bull is contributing massively to the sustainability of the esports industry. 

Coca-Cola sponsoring Wild Rift

From 2013 to 2016, Coca-Cola sponsored some major League of Legends events. Then in 2022, the world’s most famous drinks company signed a multi-year deal with Riot Games to support Wild Drift, the company’s flagship esports mobile title. Through this landmark deal, fans will get to enjoy some unique user experiences and content. 

Transforming esports

Sponsorship is having a monumental impact on the esports industry. One of the biggest impacts is engagement with it. Sponsorship by brands is encouraging different demographics to engage more with esports while providing the brand access to demographics they consider a perfect fit. 

Sponsorship has also seen more money pour into the industry from traditional sports and bridge the gap between these and digital sports. But there will always be room for improvement, they can follow the lead of some of the most successful sports leagues in the world to generate income. In Canada, the CFL has recently partnered with a sports betting and gaming operator, gaining them income while also gaining the sponsor some extra exposure on the sidelines, this strategic partnership is raising the profile of popular casino games in Canada while ensuring the CFL can afford to expand. Gambling sponsorship is often viewed with scepticism but there’s no denying it can take the sport to the next level, as it has done with the EPL, NFL and NHL in previous years.

Esports sponsorship has grown immensely as brands recognize the incredible potential that supporting the industry has to promote themselves to esports fans. Meanwhile, the industry reaps vast amounts of investment from it, which sustains the industry and helps it grow stronger.