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KeSPA/IEG vs OGN/MBC, what's going on?

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Smorrie
Profile Blog Joined September 2002
Netherlands2928 Posts
Last Edited: 2007-03-20 00:33:07
March 20 2007 00:30 GMT
#1
Props to Manatea, a new tl.net member who posted this in the Poll comments.. He wasn't able to create new threads yet, so I just created one for him ^^;

On March 19 2007 03:21 Manatea wrote:

Hello.
I'm a one of the common fans of Starcraft league in Korea and I have been reading here
cuz My English is not good, so I just read for a long time...
recently I felt sad you guys have no idea about what's going on in Korea
so I translated long articles

...then I registered TL.net and I found I can't make new thread now...-_-;;;
so I write here.

I hope it helps.
(I'm afraid you may not understand my translation due to my bad English)

This article is from Starcraft gallery in dcinside.com, written by FR


--------------------------------------------------------------------
10 topics of recent Starcraft Scene
--------------------------------------------------------------------



1. Does Kespa have rights of proleague?

- Definitely NO. In fact, First plan of proleague was made by GameTV, not OGN. OGN bought and made up the plan and launched proleague. It was start of 2003 Ever proleague and Neowiz Pmang Proleague, The operating body of 2004-2006 Sky proleague was OGN and SK teletech(Now it is the part of Pantech). Kespa just cut in, stole some sponsor money and put in their name without any contracts. MBCgame was a victim too, by being forced closure of Teamleague.

OGN hasn't agreed transfer of proleague's rights since 2005 united proleague started. OGN has legal trademark of proleague, Kespa has to use another logo if they launch proleague with another broadcasting station, though possibility is quite low.

Note from the translator : Kespa cup, which broadcasted without OGN/MBCgame, completely failed, big sponsors are actually hesitating to invest the proleague without OGN/MBCgame)

Kespa can't stop OGN/MBCgame even if OGN launches new proleague and use their proleague logo.(Proteams in Kespa may boycott the new league, as they boycotted individual leagues) It is clear which league is approved by audiences, OGN has the trademark

2. Didn't OGN/MBC treat badly on progamers? (view of performance fee)

- It was good if you regard of appearance time. I'll pass 2001 and former times because it was hard time for OGN to manage business. In 2002, fee was 100,000 won(almost 100$) and it was not bad if you regard performance time(20 minutes-3 hours) and the fact that the number of viewers was not high enough. prize money was also not bad. Of course it was hard to depend on living with those fees, but it's the matter the chance to be shown on TV, not unreasonable fee. In my view, fee is quite reasonable, with the prize money that they can earn in major leagues. Rebroadcasing fee needed? well, I have nothing to say about it.

3. Didn't OGN/MBC treat badly on progamers? (view of prize money)

Since Mycube Starleague, qualified 16 players got 1,500,000 won(=1,500$) is it too low? It is low 1,500$ for 3 months but it isn't for their performance time. There are no reason for players to stick to one league. It just tiny size of market or player's ability if there are only few league. It doesn't make sense the matter of "Professionalization of eSports" if they have to rely on performance fees and prize money. No pro teams can manage with only prize money and TV performance fee


4 Didn't OGN/MBC treat badly on progamers? (view of profit distribution)

Some guys are insisting "OGN/MBCgame should distribute VOD and sponsor money because progamers have contributed their business profit", but it is total misconception. Distribution of profit exist as "author's royalty" on only book publication market, but not in broadcasting market. A contract consists of performance fee and prize money, there are no distribution of profit on the contract. Do players demand more money over their salary on contract if Kespa sells peudo-broadcasting fee in high price?


5. But don't commentators get high salary? I heard their annual salary is over 100,000,000won(100,000$)

- according to OGN's balance sheet, OGN paid 790,000,000won(790,000$) for their workers in 2005. Does OGN can afford to pay high salary to the commentators and 30-40 staffs and performance fee for progamers? Even if you exclude temp workers, commentators' cannot get 100,000$ salary


6. Let's compare with other sports.

1) If you see the other pro sports, association has broadcasting rights, so Kespa has the rights.

- As you look at the other sports, Association plans, promotes, manages, and do everything about the league, Kespa should make their own league if they want to sell the rights. I doubt Blizzard let them sell it. (In my opinion, Blizzard will not put up with it. Blizzard's policy is that sponsor money is OK but direct money is never allowed.)

2) eSports should manage by itself by making money

- No pro sports in Korea can manage without sponsors.

Most popular sports like baseball, soccer depend on big corporations. If it is possible, why proteams had to look for big corporation sponsors? Korean market is small, no club team culture exists, and age bracket of fans are young, which means they don't have much money. Circumstance is worse than other sports. How do Kespa make profit except for broadcasting rights? Are they going to export Starleague and get license fee?(It's nonsense) Stop barking about broadcasting rights and face the reality.


7. Simple understanding of broadcasting rights issues

1) Stealing the broadcasting rights
Kespa : Hey, you must buy proleague broadcasting right from now. We have teams
OGN/MBCgame : We made the league, why do we have to do that?
FiFo : Broadcasting rights business will develop eSport market. blah blah blah

(Short note from the translator : FiFo is side with Kespa. I recommend not to believe FiFo's articles too much. Most fans are side with OGN/MBCgame)

2) Since Kespa sold the right to IEG
Kespa : Buy it from IEG
IEG : 200,000,000 won(200,000$) for 1 year, you each. No exclusive rights
OGN/MBCgame : Are you kidding?
FiFo : With IEG, We got great chances to internationalize eSport and to advance DMB, other multimedia market, blah blah blah

3) Negotiation
IEG : 200,000,000 won(200,000$) for 1 year, you each as I told you first. Copyright of broadcasted games is mine, too. Don't complain if I sell the games.
OGN : I will allow broadcasting right, and pay for it. but give me exclusive rights for cable TV for 3 years. But how can you get copyright of broadcasted games? broadcasting is also important, why don't we share the copyright?
MBCgame : I will pay anyway, but we deny the concept of broadcasting rights. Others are same with OGN.
FiFo : Due to OGN/MBGgame, Starcraft leagues are in danger.

4) Breakdown
Kespa/IEG : OK. you can refuse to buy, but your individual leagues are over. We will take new broadcasting stations, and make new leagues
OGN/MBCgame : Fuck, mean creature, we will make new leagues, too
FiFo : OGN/MBCgame admitted broadcasting rights but it was too late, and new game channel will be launched. blah blah blah

5) After Kespa cup
Other broadcasting stations : We are not interested in your broadcasting rights
Kespa&IEG : Fuck OGN/MBCgame, buy the rights, Shinhan Bank will sponsor 5 billions won(=5 millions$) -> Since no stations are interested in, they threat OGN/MBCgame again
OGN/MBCgame : You broke down the negotiation...
Shinhan Bank : We are still considering to be a sponsor, but no decision so far


8. Analyzing of deals(07.03.17) YY:MM:DD

1) Kespa and IEG
Demand
1. OGN, MBCgame each pay 250,000,000won(250,000$) for a year and total 1.5 billions won(1.5 million$) for 3-years broadcasting rights
2. Pay additional 40% of VOD sales
3. Provide the broadcasting screens to Kespa and IEG for free

Serve
1. 2007 100% supervision are broadcasting guaranteed. 2008~2009 60% supervision and 100% broadcasting guaranteed.
2. Development cost support - 1 billion won(=1 million$ per year)
3. New Media copyright guaranteed

2) OGN/MBCgame
Answers)
to demand 1) We each pay 130,000,000 won (130,000$) for a year and total 780,000,000 (780,000$) for 3-years broadcasting rights
to demand 2) 40% of sales? not profit!? Total nonsense,
to demand 3) You can't divide observing, commentary, other presentations from the screen, you should buy the screens

to serve 1) Agree
to serve 2) It is distribution of sponsor money, not Kespa's. It's clear fact and not a term
to serve 3) You guaranteed copyright, but why do you demand screens for free?


Writer's Explanation
I can't approve the concept of "broadcasting rights" but let's analyze the deal anyway

IEG bought the rights 1.7 billion won for 3 years but sells 1.5 billions won + 40% of VOD sales with NO EXCLUSIVE RIGHTS is mad condition. I've never heard those kind of deals. Broadcasting right is normally exclusive in particular media. Why is fee so expensive with no exclusive rights?
And they insist to provide broadcasted screens of OGN/MBCgame for free
It means Kespa/IEG can sell OGN/MBCgame's screen to other broadcasting stations.

That's why Kespa is a robber
Channels are everywhere which can't produce programs by themselves, but receive and transfer the broadcasted screens as if you watch the video tape. If Kespa buy any failed channels and transfer the OGN/MBCgame's screen, OGN/MBCgame are completely fucked.

Though observing, commentary are as important as game itself, they ignore and demand free providing. They are a just robber themselves.

Kespa has made no concession. Kespa just want OGN/MBCgame to be fucked
New Media copyright is no worth. Deal of Kespa blocks providing screens to other media except OGN/MBCgame's own channels and VOD service.(Deal includes only broadcasting rights and VOD payments. Providing screens to other media without negotiation means violation of contract)

So even if OGN/MBCgame have copyright of New Media, they can't sell by themselves. If you remember Kespa's demand was providing broadcasted screens for free, their intension is obvious. They will occupy new media first, and force OGN/MBCgame to pay.

At last development cost support.
Kespa insists "We can use screens because we support development cost" but you should look into the details.
Now OGN/MBCgame work everything about the league, and Kespa's support is not so big. and all of money is from sponsors, not Kespa. Kespa is pretending as if they are a big donator with sponsor money

OGN/MBCgame has made lot of concessions but Kespa's done nothing. New suggestions are nothing but mean tricks. Toxic provisions are everywhere to fuck up OGN/MBCgame
(I hate concessions, I hope OGN/MBCgame boycott and new individual leagues with amateurs)

Does Kespa really want negotiation? They told they wanted win-win game but there are no single concession but oral tricks which only look good on papers
I'd like to ask how much OGN/MBCgame give up their proper rights. shut up you Kespa's fanboys. I'll kill you if you blame both and later blame OGN/MBCgame for no concessions


9. Will CJ buy MBCgame?
(Note from the translator : It's wasting time to translate broadcasting law shits. I'll just summarize one sentence)

MBC has no reason to sell their channel


10. Will everyone be happy if Kespa withdraw individual league boycott? let's analyze Kespa's policy 5-day proleague per week

- 2005 Kespa forced to launch untied proleague to protect players from too many games and improving game quality.
But actually increased number of proleague games are far more than decreased Teamleaque games. and Kespa plans to launch more proleague games
Now there are 25 proleague games per week maximum, but if new plan operate, there are 45 games maximum, it intends to kill individual leagues
Though they promise to protect players, improve game quality, why do they increase the number of games unreasonably?
Audience rating is obvious, Individual league>Proleague. But why do they ignore what fans want, reduce individual league games and increase proleague games abnormally?
They never think what fans want and seek their own benefits, don't they?
Number of games must be increase even if individual league are dramatically shrunk.
Do Kespa really care protection of players? Don't what they want is only to show company name on TV more frequently and make a good report for their boss?

Kespa's promised
I hope they hasn't forgotten yet.
Globalization of eSport and diversity of eSport
Let's suppose 5 day proleague and 2 day individuals at 7:00PM gold time.
Then, where are other eSports game? Does your promise only intend to cheat fans, to attract the press for your fame with fake catch phrase? I'll speak one more. Shut up and don't spoil Starcraft at least

Haven't they forgotten globalization yet?
Other nations' are doing W3 leagues, FPS leagues by themselves. Are you going to export Starleague and get license fee? You'll be revealed as a greedy crook to all over the world people, you pig bitch with single-digit IQ

We fans ask, Does Kespa work for fans?
Increase number of games to protect players, Increase proleague ignoring fan's taste

We demand, Stop trying to enlarge proleague that most fans hate.
Quit diversity something that you will not operate and think how Starcraft leauge develope. You can help as long as you shut your mouth up.

and Stop talking about fans. You are not representative of fans but just board of sponsors.


General Critique

I can see some Kespa fanboys who insist OGN/MBCgame has exploited players and Kespa is good for players. It's pathetic they argue performance fee is only 20$ and commentators get over 100,000$ without any proof as if they are true

I felt sick they claimed performance fee is terrible though they have no ideas about broadcasting industry, so I wrote it
I lost interests Starcraft scene when I read team coaches blamed OGN/MBCgame and some crazy articles side with Kespa. It is fan they have to follow but how can they threat fan to follow them? I was disappointed to them who forgot the meaning of "pros"
Did I root and support for those craps?
My solution is OGN/MBCgame say goodbye to Kespa and starts new fun amateur league and enjoy it. Leagues just fun to watch, fun to play, than everyone can forgot the hard life for a while...
Even if leagues disappear and coaches lose their job and nowhere to go, it will be their fault.


------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------

Enjoy and I hope you got some information about recent issues.

It has a strong technique, but it lacks oo.
Smorrie
Profile Blog Joined September 2002
Netherlands2928 Posts
March 20 2007 00:31 GMT
#2
On March 19 2007 23:18 Manatea wrote:
Hot news.

IEG/Kespa and OGN/MBCgame has come to an agreement
(As I told, I'm newbie I can't make new thread now)

not many detail information yet
but it seems that Government came into the negotiation

anyway at least we can see leagues regardless of justice.
I just hope they won't try to shrink individual leagues anymore.

Edited : I'm not sure yet which side's suggestion was agreed. I'll put more information after I find out.
It has a strong technique, but it lacks oo.
mk..))
Profile Joined February 2007
95 Posts
March 20 2007 00:47 GMT
#3
It looks like everything will be on schedule. Yay.
Red_Dragon
Profile Blog Joined July 2004
Croatia2862 Posts
March 20 2007 00:59 GMT
#4
Thank you for your post, the things are much clearer for me now
Climbing walls of an endless circle
Carnac
Profile Blog Joined December 2003
Germany / USA16648 Posts
March 20 2007 01:06 GMT
#5
Just read it and I think I understood everything. Manatea, your English is not perfect, but it is certainly not very bad, don't be afraid to post in English If you want me to I can make some corrections.
ModeratorHi! I'm a .signature *virus*! Copy me into your ~/.signature to help me spread!
Locke.
Profile Blog Joined November 2006
Israel562 Posts
March 20 2007 01:08 GMT
#6
Featured thread imho.
I honestly still don't understand how Kespa sold Broadcasting Rights if they didn't own them.

And if that is the case and it can be proven in court. Don't you think the obvious solution is to have Kespa return the money and IEG to return the fake Broadcasting Rights papers and continue as usual?

Somehow I feel it really isn't that simple
xM(Z
Profile Joined November 2006
Romania5299 Posts
March 20 2007 01:21 GMT
#7
nice read; somewhat enlighting
but still, i have no ideea who the fuck KESPA is? is a cheesy self-proclaimed union for SC BW?player's only?managers only?sponsors only?; it represents all the eSports from s.Koreea?
And my fury stands ready. I bring all your plans to nought. My bleak heart beats steady. 'Tis you whom I have sought.
lololol
Profile Joined February 2006
5198 Posts
March 20 2007 01:23 GMT
#8
Thanks a lot for the information.
I'll call Nada.
Last Romantic
Profile Blog Joined June 2006
United States20661 Posts
March 20 2007 01:27 GMT
#9
OK this really got me.

IEG paid 1.7bn KRW for rights

and it tried to sell, non-exclusively, for only 3 years, for 1.5bn KRW + 40% of profit.

That's REALLY ridiculous no matter how you look at it.

Thanks for translation ^^; your english is perfectly understandable.
ㅋㄲㅈㅁ
Wasabi
Profile Blog Joined August 2006
United States3085 Posts
March 20 2007 01:54 GMT
#10
--- Nuked ---
jkillashark
Profile Blog Joined November 2005
United States5262 Posts
March 20 2007 01:56 GMT
#11
Encourage the Korean speaking community to come in here more and share us news like this.
Do your best, God will do the rest.
SonuvBob
Profile Blog Joined October 2006
Aiur21550 Posts
Last Edited: 2007-03-20 02:09:09
March 20 2007 01:58 GMT
#12
On March 20 2007 10:27 Last Romantic wrote:
OK this really got me.

IEG paid 1.7bn KRW for rights

and it tried to sell, non-exclusively, for only 3 years, for 1.5bn KRW + 40% of profit.

That's REALLY ridiculous no matter how you look at it.

Thanks for translation ^^; your english is perfectly understandable.

The 1.7bn was for 3 years as well, and the 40% is VOD sales, which probably don't amount to much compared to those numbers.

All these articles are so biased I don't know what to believe. KeSPA claims to do the vast majority of the Proleague work, and OGN claims the same thing. We really need to figure out the truth here.

KeSPA demanding OGN/MBC's observer/commentary for free is ridiculous, so I'm more inclined to be on OGN/MBC's side at this point, but they're not without fault either.
Administrator
InRaged
Profile Joined February 2007
1047 Posts
Last Edited: 2007-03-20 02:39:10
March 20 2007 02:37 GMT
#13
SonuvBob, VOD salling is major MBC/OGN's income afaik. And keyword there is "non-exclusively" — that makes this deal looks like a joke.

On March 20 2007 10:08 Locke. wrote:
I honestly still don't understand how Kespa sold Broadcasting Rights if they didn't own them

Look how I understand this =)
Kespa sold Rights of Kespa's proleague (Kespa Cup I suppose). Owner of Original proleague is still OGN, but OGN can't launch it since "Proteams in Kespa may boycott, as they boycotted individual leagues". So for me Kespa clearly looks like extortioner.
SonuvBob
Profile Blog Joined October 2006
Aiur21550 Posts
Last Edited: 2007-03-20 02:51:59
March 20 2007 02:50 GMT
#14
Can someone explain exactly who makes up KeSPA's board? Is it mainly the pro teams' sponsors? Who else?

Also, are there any more details to the "non-exclusive" rights? The IEG guy said they were trying to get Proleague broadcast outside of Korea, which couldn't happen if OGN and MBC have exclusive broadcast rights. Is IEG allowed to sell rights to other stations inside Korea, or are there restrictions?
Administrator
muramasa
Profile Joined March 2005
Canada1299 Posts
March 20 2007 04:04 GMT
#15
On March 20 2007 11:50 SonuvBob wrote:
Can someone explain exactly who makes up KeSPA's board? Is it mainly the pro teams' sponsors? Who else?

Also, are there any more details to the "non-exclusive" rights? The IEG guy said they were trying to get Proleague broadcast outside of Korea, which couldn't happen if OGN and MBC have exclusive broadcast rights. Is IEG allowed to sell rights to other stations inside Korea, or are there restrictions?

Remember that part of the deal IEG/KeSPA was pushing is that they have access to the networks boradcasts for free and can sell them to someone else for rebroadcast if they want.

From the article:
3. Provide the broadcasting screens to Kespa and IEG for free
Hong Jin Ho. Nevar forget.
SonuvBob
Profile Blog Joined October 2006
Aiur21550 Posts
March 20 2007 04:21 GMT
#16
Yes, I'm asking if there are any restrictions on what KeSPA/IEG can do with them.
Administrator
niceplayer
Profile Joined March 2007
United States238 Posts
March 20 2007 04:53 GMT
#17
Please, the korean translators here please work with manatea to flesh out this article here - correct the english, take out the inflammatory comments, tidy up the sentences.

This is a good article, just needs a serious case of polish.
free[gm] - redeemer toss fighting!
thedeadhaji *
Profile Blog Joined January 2006
39489 Posts
March 20 2007 05:07 GMT
#18
LR, it's not 40% of vod "profit" it's 40% of SALES (before cost of sales is taken into account).
Biiiig wtf.
Pistasj
Profile Blog Joined November 2005
Norway272 Posts
March 20 2007 05:10 GMT
#19
I can't wait for further updates. I just hope kespa admit they where wrong, OGN/MBC get exclusive rights and that this whole mess prove that you can't ignore the fans.
fusionsdf
Profile Blog Joined June 2006
Canada15390 Posts
March 20 2007 05:27 GMT
#20
On March 20 2007 13:21 SonuvBob wrote:
Yes, I'm asking if there are any restrictions on what KeSPA/IEG can do with them.


what sort of restrictions are you talking about? Its already clear that they can redistribute on any channel willing to buy without paying ogn/mbc....

After that, what restrictions could there be?
SKT_Best: "I actually chose Protoss because it was so hard for me to defeat Protoss as a Terran. When I first started Brood War, my main race was Terran."
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