EU & NA LCS JERSEY SPONSORS JULY 2017 Introduction When it comes to activating esports team assets, there are a variety of options for sponsors. From utilizing esports-specific assets (such as hardware, gaming chairs or streams) to increasing digital, particularly social presence, investors and sponsors alike can use esports teams for influencer marketing campaigns, on-site event activation and other endorsements. One channel that is used consistently is physical branding on the team jersey. Sponsor visibility has become as much a staple of competitive gaming as in traditional sports, despite a vast difference in value. For example, the all-time highest footBall kit sponsorship deal, Between Adidas and Real Madrid, is an estimated $193-million per-year, while according to Newzoo, the total esports sponsorship revenue for 2017 is only expected to reach $266 million. However, for such a young industry, sponsorships can serve as an indicator of the level of investment. Teams across multiple games are signing larger corporate Brands and investment firms, who are beginning to further leverage esports as an advertising medium. The last few years have seen increased investment into esports teams, specifically from traditional sports teams and figures. Echo Fox is an NA LCS squad that was Bought By former NBA player Rick Fox, while EU LCS team, Fnatic, formed a strategic partnership with Italian soccer club AS Roma. In order to understand jersey sponsorships and how differently they have evolved in esports, we took a look at the top teams competing for Riot Games’ title League of Legends. Methodology We used the following methodology •We looked at all 20 professional esports teams currently competing in the EU and NA League Championship Series (LCS) for Riot Games’ title League of Legends. •We collected the data from the official jerseys worn during the 2017 Summer Split of the League Championship Series (LCS), in the fourth week of broadcasting. •Logos are counted as one per company, even where different versions appear on the same jersey e.g. Razer’s full logo and its emblem are counted as one trademark. • The logo Positions are defined as follows: Sponsor Positions Sleeve Front / Neck Sleeve Sleeve Back / Neck Sleeve Front / Front Back / Back Front Back * TSM and Team Liquid have logos placed only on one or more players jersey. If logo A and logo B appear on different players at the same time, these are counted as two unique logos. esportsobserver.com EU LCS Jersey Sponsors by Position Team Front/Front Front/Neck Back/Back Back/Neck Sleeve Ballistix AMD Fnatic Gear Fnatic Gear Fnatic Fnatic Gear N/A Monster Energy MSI Monster Energy Quersus HyperX eNgage G2 Esports Paysafecard N/A N/A N/A Paysafecard Need 4 Seat CaseKing Noble Chairs H2K N/A N/A Overclockers UK N/A Twitch Twitch Misfits N/A N/A N/A N/A Twitch AD HOC Gaming Mysterious N/A AD HOC Gaming N/A AD HOC Gaming Esports Clothing Monkeys XMG XMG XMG Ninjas in Pyjamas N/A N/A N/A N/A N/A Twitch Corsair Splyce Splyce ViewSonic N/A N/A Scuff Gaming Team ROCCAT N/A N/A ROCCAT ROCCAT ROCCAT Adidas Canal+ Team N/A Canal+ N/A HP Omen by HP Vitality Omen by HP Unicorns Need for Seat eNgage Bärentreff of Love N/A Twitch N/A Gerolsteiner esportsobserver.com NA LCS Jersey Sponsors by Position Team Front/Front Front/Neck Back/Back Back/Neck Sleeve HTC iBuyPower Logitech Logitech Logitech N/A N/A Cloud 9 Twitch LoLwiz MSI MSI Twitch 5 Hour Energy Corsair Counter N/A N/A DXRacer N/A 5-Hour Energy Logic iBuyPower Gaming Twitch eNgage Hyper X ASUS HyperX Echo Fox Republic of Gamers RELOAD eNgage J!NX Pro N/A Republic of Gamers RELOAD Vertagear FlyQuest N/A META Threads N/A N/A N/A OMEN by HP N/A OMEN by HP N/A N/A Immortals CyberPower PC Phoenix1 N/A META Threads META Threads N/A Twitch Twitch Buffalo Wild Wings HyperX Team Alienware N/A N/A N/A Mountain Dew Dignitas Western Digital DXRacer HyperX HyperX Elgato Gaming Team N/A N/A Monster Energy Monster Energy Zowie EnVy Scuf Gaming Twitch AOC Ballistix Alienware HTC Team Monster Energy J!NX Pro N/A N/A HyperX Liquid Monster Energy Razer Twitch CyberPowerPC CyberPowerPc Geico HTC Geico N/A HTC N/A Team Geico HTC Logitech Logitech SoloMid Logitech Twitch Comparison Total number of Jersey Logos Placed in 45 NA and EU LCS This chart shows the total number of logos placed in the NA LCS against the EU LCS. The higher number of active brands in North America league can be attributed to a number of factors including larger weekly audience, more team investment, and a higher number of popular North American streamers from the game’s early release. 72 The NA LCS is currently planning a revised franchise system (with no relegation) for 2018, designed to make the league more NA LCS EU LCS investor friendly and financially sustainable. Placing of Logo Sponsors This chart to the right compares the number of logos placed on each jersey position across both the NA and EU LCS. While shirts in the Premier League or Bundesliga mainly boast a single main chest sponsor and a sports gear supplier, esports place multiple brands across a team’s jersey. Some Bundesliga clubs Just recently started to feature their own sponsors on the sleeve, whereas in the NA LCS, the sleeve position is the one with the most logo placements. In some cases there are different brand logos on each sleeve. European LCS team have about half the number of sleeve placements, and generally places less logos on the jersey. Most Placed Logos Teams With Most Logos Logo Placed Position Sponsor Position Team Placements Logos 1 Twitch 11 1 Team SoloMid 12 2 HyperX 7 2 Team Liquid 11 3 Monster Energy 6 Echo Fox 11 Logitech 6 3 Cloud9 10 HTC 6 Conclusions and Insight In terms of sponsorship visibility, esports could be considered a hybrid of European and North America sports models. While it borrows heavily from European soccer kits, rugby kits etc. , it also uses a number of activations prevalent in the NFL and NHL, which do not have jersey sponsors (the NBA will only be introducing sponsored “jersey patches” this year). Teams in these U.S leagues generate revenue by licensing off stadiums, training grounds, or even through specific activations with players. With its digital foundation and current lack of team-owned venues, esports teams likewise create additional revenue through various sponsored content, including brand activations for training houses, and live video streaming. In general, esports teams offer jersey positions as an advertising medium, whereas the positions are offered proportionally to sponsorship money paid. When trying to evaluate the advertising effectiveness of placed logos on a jersey, the difference between broadcast and play time needs to be considered. While logos might be more visible during interviews, stage-entry etc, players are sitting down during play time, with their backs against a chair, drastically limiting the visibility of certain jersey areas. However, this has not stopped brands building sponsor visibility in back/back area more than any other in the NA LCS, despite the decreased visibility. About sixty percent of an average LCS broadcast can be considered as actual play time. While the front/front space appears to be the most effective area, and the highest valued position, it is hardly used for sponsor logos. It is the sleeve position that is currently seeing the most competition for visibility by brands. Sleeve placement appears to be overestimated, since its space limitations make it ill-suited for logos that carry more complex or longer advertising messages. Therefore, there is not only competition for visibility on a jersey’s sleeve, it is also only viable for brands with a clear and short advertising message. Comparatively, the back/neck area of the jerseys is the least used area, despite the higher visibility for sponsors compared to, for example, the back/ back area during play time. Unlike in European sports kits, teams forgo brand placement on the front of their jerseys, in favour of their own stylized team trademark. Four LCS teams do however have sponsor visibility on the chest, and Team Liquid and Team EnVy even provide space for Monster Energy. While this isn’t the case for most other food and beverage brands (Mountain Dew and Buffalo Wild Wings are both shown on the back and sleeve), the arrival of more non-gaming sponsors could result in more logo placements on the front the jersey, even if they aren’t as prominently displayed as in European sports. Outside the LCS and in other esports titles, there are also teams who’ve incorporated non-endemic sponsors into their logo or team names. The upcoming Overwatch League by Blizzard Entertainment will have locally-based teams, and introduces the possibility of stadium sponsors and naming rights. However, authenticity is still extremely valuable within the growing industry, and the presence of large brand logos on jersey front may not be as viable as in the traditional sports industry. About The Esports Observer TEO is the leading esports business publication and platform for esports professionals and those interested in entering the scene. We provide daily news coverage and features on the industry’s developing ecosystem, and provide data platforms that cover new investments, streaming/social media performance and more. We are on a mission to build the central information hub for the business of esports.