When the biggest tournaments in the world are broadcast on Twitch and YouTube, and licensing agreements in esports are substantially lower than their traditional sporting counterpart, it isn’t difficult to work out that the global esports economy is highly dependent on sponsorships.
Many competitive esports organisations and tournament operators would attest to this theory, and analytical firms such as Neilsen recognise the importance of sponsorships too. The world-renowned investment bank Goldman Sachs estimates that sponsorship will represent a significant 35 percent of the industry’s total revenue in 2022, the second-largest revenue opportunity after media rights.
Earlier this month, we spoke with Zachary Rozga, CEO and Founder at The Consumer Engagement Company, to find out more about his analysis of the esports industry’s dependency on sponsorships, as well as his solution to a problem that he believes is costing industry stakeholders hundreds of millions if not billions of dollars.