NBA Goes Beyond Game with E-Sports Partnership

CHICAGOLAWBULLETIN.COM TUESDAY, MARCH 17, 2017

Volume 163, No. 50 Serving Chicago’s legal community for 162 years NBA goes beyond game with e-sports partnership ideo gaming has when it announced that it was come a long way teaming up with Take-Two Inter - since Pac-Man and active Software Inc. to sponsor SPORTS MARKETING PLAYBOOK Donkey Kong. Back an e-sports league, the first then, the term “gam - among U.S. professional sports’ Ving” didn’t exist outside of com - Big Four to enter into such a puter labs, e-sports wasn’t a deal. category of sports and the only The new “NBA 2K eLeague,” competition was between scheduled to launch in 2018, is DOUGLAS N. M ASTERS teenagers vying to get listed on built around NBA 2K, a series of AND SETH A. R OSE neighborhood arcade machines’ basketball-simulation video highest scores list. games designed to emulate the Fast-forward to today, when e- play of NBA teams. Douglas N. Masters is a partner at Loeb & Loeb LLP, where he litigates and sports is a multimillion-dollar in - The first game was released in counsels clients primarily in intellectual property, advertising and unfair dustry with collegiate and 1999 and a new one is developed competition. He is co-chair of the firm’s intellectual property protection group and professional teams and leagues, and published every year. Origi - he can be reached at [email protected]. Seth A. Rose is a partner at the firm, corporate sponsorships and com - nally published by video game in - where he counsels clients on programs and initiatives in advertising, marketing, petitions and events with tens novator Sega under its Sega promotions, media, sponsorships, entertainment, branded and integrated and sometimes hundreds of Sports label, NBA 2K is now marketing, and social media. He can be reached at [email protected]. thousands of dollars in prize published by 2K Sports, a sub - money. sidiary of Take-Two, the compa - an 82-game regular season, a Sixers’ lead with the purchase of Colleges and universities ny behind other well-known bracketed playoff system and a a stake in its own e-sports fran - across the country are not only video game series, including the championship matchup at an chise, called Misfits, which just putting together e-sports teams, “Grand Theft Auto” series, NBA venue, according to Silver. last month acquired Vainglory they are recruiting students and among others. Each team will comprise five team Fates Zero — a pro squad offering generous scholarships to As of 2017, the NBA 2K series professional e-sports gamers of players that reportedly has a e-sports athletes. includes 18 main game versions who will play the game as coveted spot in one of the biggest The industry is poised for even and several spinoffs and can be avatars. Take-Two and the NBA upcoming gaming competitions. more mind-boggling growth. The played on 18 different gaming franchises will recruit gamers And earlier this year, Milwau - e-sports economy is expected to platforms. Since 1999, the NBA through a virtual draft, which kee Bucks co-owner Wesley grow to $696 million this year — 2K series reportedly has sold will be televised or streamed on - Edens, along with Fortress In - an increase of more than 40 per - more than 68 million units line. vestments, launched the e-sports cent over the previous year, ac - around the world. The most re - Silver told The Associated brand FlyQuest with a team to cording to a recently released cently released version, NBA Press he will even have his own play “League of Legends,” and e-sports market report by New - 2K17, has sold nearly 7 million avatar that will present the they are reportedly considering zoo, a provider of market intelli - units since its release in Septem - championship trophy to the win - other e-sports investments. gence covering the global games ber 2016, according to Take-Two, ning player, which will also re - In the front office, the Houston and e-sports industries. the parent company of 2K. ceive a cash prize. Rockets in December 2016 creat - Fans of e-sports are expected The explosive growth predict - While the NBA’s move signals ed the position of director of to spend $64 million on tickets ed for e-sports in general over the first sponsorship arrange - e-sports development, a first for and merchandise in 2017 alone, the next few years makes spon - ment at the league level, individ - an NBA team. The Rockets hired said Newzoo. Globally, the audi - soring the e-league a smart move ual NBA teams have been Sebastian Park to look into buy - ence for e-sports will hit 385 mil - for the NBA, which (like all pro - involved in e-sports for a number ing e-sports teams and to get lion in 2017, including 191 million fessional sports) wants to attract of years. Several teams have more involved in gaming, accord - e-sports fans and 194 million oc - the gold standard of fans — mil - bought interests in e-sports ing to Sports Illustrated. casional viewers. lennials. teams that field teams of players Individuals in the NBA are By 2020, Newzoo predicts the NBA Commissioner Adam Sil - that compete in games like seeing the light as well. Investors global e-sports fan base will in - ver said in a statement that he “League of Legends,” “Heroes of in NRG eSports, an e-sports or - crease 50 percent to 286 million. hopes creating “a brand new the Storm” and “Super Smash ganization founded in 2015 by co- Brand investment in e-sports, in - league experience” will help ex - Bros.,” among others. owners of the Sacramento Kings, cluding sponsorships, advertis - pand professional basketball’s in - The Philadelphia 76ers ac - include retired hoops superstar ing and media rights, will double ternational brand. quired controlling stakes in Shaquille O’Neal as well as base - by 2020 to $1.5 billion in just the “NBA 2K eLeague” will start Team Dignitas and Team Apex ball luminaries Alex Rodriguez next three years. with eight to 12 teams in the in - in September 2016, and then and Jimmy Rollins. Given the stratospheric rise of augural season and eventually combined the two e-sports fran - Outside the NBA, other teams e-sports, it was really only a mat - expand to include all 30 NBA chises under the Team Dignitas are expected to follow suit. Ad ter of time before the virtual jug - teams. The franchises reportedly gaming brand. In the process, Age reported in January that the gernaut hits the big leagues – the will build and own their e-sports the Sixers became the first Dallas Cowboys organization is live sports big leagues, that is. teams — there is no word yet on North American professional thinking about getting into e- Last month, the National Basket - which teams will play in the first sports organization to own an sports. As potentially the first ball Association signaled a move season. The e-league will follow e-sports team. National Football League team to into virtual hardwood territory the NBA’s format by presenting The Miami Heat followed the take the e-sports plunge, the

Copyright © 2017 Law Bulletin Publishing Company. All rights reserved. Reprinted with permission from Law Bulletin Publishing Company. move could be a game-changer impressions” — the number of property and contracts, to name “NBA 2K eLeague” may also face for the NFL. unique viewers that tuned in on - a few. As e-sports law practition - competition from sport-themed There’s no doubt that e-sports line and via television — and was ers point out, most gamers are partnerships with other estab - presents some exciting opportu - broadcast in 18 languages. young and may not understand lished gaming organizations. nities for traditional professional Apparently, 300 dragons were the ins and outs of contracts. For example, earlier this year, sports leagues. Anyone who’s also slain during the 2016 cham - Gamers’ publicity rights to ESPN teamed up with Electronic skeptical of the popularity of e- pionship — which raises the their names, faces, avatars and Arts to broadcast its “FIFA sports in general or wonders how question: Can a basketball simu - commentary could also become eSports” virtual soccer tourna - many people are actually watch - lation game like “NBA 2K” ap - an issue. Also potentially at issue ments across its network, includ - ing other people play the games, proach even a measure of the is the intellectual property rights ing the FIFA Ultimate Team consider the stats for the 2016 popularity achieved by fantasy- to the streamed games, which in - Championship Series. League of Legends Champi - based games? clude images, sounds, design and Even with these hurdles, the onship compiled by LOL Clearly, the NBA believes it code. NBA has the right partner and a ESports: The 15 days of competi - can. Games are also streamed in sizeable potential audience of fans tion included 49 hours of game Along with the new league multiple countries around the to make the “NBA 2K eLeague” a time, drew a total of 396 million comes a variety of legal issues, world, which brings laws form success. And no dragons will be “cumulative daily unique including copyright, intellectual different countries into play. The harmed in the process.