- Esports’ commercial success is only starting to match its popularity
- Beckham’s interest mirrors that of Will Smith, Michael Jordan, Mike Tyson and Drake
- Former footballer helping develop an academy system for gamers
- Big teams with sponsorship deals starting to emerge
- Investors beginning to sit up and take notice
What the company owns
Guild has recruited David Beckham, the former England football captain to be its public face. He brings kudos but also holds a near 5% stake.
With strong support from Beckham, Guild is hoping to recreate the Premier League academy model in esports to hothouse talent.
The Manchester United and Real Madrid legend will use his first-hand knowledge of the system to adapt it for the latest generation of gamers, providing coaches and mentors for players joining the new set-up.
This will be a big differentiator compared with what has gone before.
How it’s doing
On 3 February 2021 Proactive reported:
The company said TaySon’s signing elevates its team to the top spot in the region from second place, adding that the Slovenia-born player has “immense popularity at a grassroots level” having recently been named ‘Player of the Year’ in the 2020 Competitive Awards for Fortnite as voted for by fans.
29 January 2021
Guild Esports PLC (LON:GILD) said it is “on track to deliver strong growth” in 2021 as it reported results covering the period prior to its flotation on the London Stock Exchange on October 2, 2020.
For the period from incorporation on September 3, 2019, to September 30, 2020, the developer of esports teams said it had secured investments prior to its initial public offering totalling £5mln while ending the period with net cash of £1mln alongside a pre-tax loss of £2.7mln representing start-up and listing costs and its pre-revenue status.
What the broker says
Zeus Capital in a note talks of the huge untapped potential of this new form of digital entertainment:
“Esports viewership, prize money and followings are comparable to those of traditional sports, but revenue per viewer is still relatively low.
“We see revenue per viewer rising as investment, content quality, distribution and sponsorship all rise in a virtuous cycle.”
What the management says
Executive chairman Carleton Curtis said in a statement in January
“Our growing presence is attracting keen interest from major brands and sponsors as esports becomes a mainstream social and entertainment activity worldwide.
“As a result, we entered the new year with an excellent new business pipeline and remain on track to deliver significant sponsorship revenues in the current year.
“Our expansion into Fortnite with three esports athletes has given us a top-tier roster with a significant social following, and a track record of wins and trophies in global competitions.”