On September 06 2017 07:07 Ansibled wrote:
Well you have a decent amount of Nordic teams in CounterStrike.
Well you have a decent amount of Nordic teams in CounterStrike.
CS:GO is also incredibly team friendly to monetisation through stickers.
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Gahlo
United States35172 Posts
On September 06 2017 07:07 Ansibled wrote: Show nested quote + On September 06 2017 07:01 Gahlo wrote: On September 06 2017 06:51 Ansibled wrote: There not being a Nordic mini league seems kind of odd to me given how many LCS players are from there. Reading through responses on Reddit, somebody said the placements make sense. Berlin is where they already are. Paris and Barcelona have been places they've gone to recently. London is a shit ton of money. Would Nodric countries have the financial backing to support a league?(honestly, I've got no clue) 24 teams is stretching it pretty far as it is, who wants to go to 30? Well you have a decent amount of Nordic teams in CounterStrike. CS:GO is also incredibly team friendly to monetisation through stickers. | ||
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Numy
South Africa35471 Posts
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Sent.
Poland9299 Posts
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cLutZ
United States19574 Posts
Champions league works because the regional leagues came first, otherwise there would be no regional league. | ||
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ruypture
United States367 Posts
someone should point out to me the good in these potential changes because i can't see them from my perspective. | ||
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geript
10024 Posts
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Kaneh
Canada737 Posts
Its easier to find someone to sponsor a french thing, an english thing, a german thing, and a spanish thing for 1000$ each than it is to find someone willing to throw down 2000$ for the whole package. I think the overall money coming in is going to be better, the same reason NA makes so much more money is the reason separate regions with separate marketing is going to be better for sponsorship. This also creates more natural interest in the 'champions league' as you want to root for your region. I think this is a great move to generate interest and money for EU. The biggest problem is the initial formation is going to require a ton of new teams. I hope more football teams buy in like PSG and Schalke did cause getting this off the ground i think is the hard part. Also its a fee to buy a license to join the league for X years. Give the guarantee return on investment and solves the problem of the cheapo rosters not getting removed. Also gives more control to riot which can be a good/bad thing. Overall i dont' really see a downside. It's essentially franchising but split into regions to make it easier to invest. | ||
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DarkCore
Germany4194 Posts
Might work with franchising, but only if enough good teams join up at the start. | ||
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cLutZ
United States19574 Posts
On September 06 2017 14:04 Kaneh wrote: I think regions is good. Its easier to find someone to sponsor a french thing, an english thing, a german thing, and a spanish thing for 1000$ each than it is to find someone willing to throw down 2000$ for the whole package. I think the overall money coming in is going to be better, the same reason NA makes so much more money is the reason separate regions with separate marketing is going to be better for sponsorship. This also creates more natural interest in the 'champions league' as you want to root for your region. I think this is a great move to generate interest and money for EU. The biggest problem is the initial formation is going to require a ton of new teams. I hope more football teams buy in like PSG and Schalke did cause getting this off the ground i think is the hard part. Also its a fee to buy a license to join the league for X years. Give the guarantee return on investment and solves the problem of the cheapo rosters not getting removed. Also gives more control to riot which can be a good/bad thing. Overall i dont' really see a downside. It's essentially franchising but split into regions to make it easier to invest. I don't see how it makes it easier to invest. The problem is too little money per team, more than doubling the#of NA teams in EU means they need to more than double the money of NA.Unless they are selling out Wembley.or Camp Nou every week at the mini LCS its not gonna happen. This is, of course, a fundamental problem with the LCS model itself. Regular season games so not generate nearly the viewership or attendence #s that tournaments do per broadcast, but still require just as many resources per broadcast. In many ways it requires more resources because it means you have to maintain all these low level teams, but they need to be decent for league play to be compelling at all. | ||
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Gahlo
United States35172 Posts
On September 06 2017 15:52 DarkCore wrote: They need to find enough good teams to fill this many leagues first, otherwise it would be a disaster. I don't want to watch G2 own their region, gain no real form of practice, and then go to worlds to get slaughtered (even worse than before). The overall quality of teams would have to increase for this to work, and H2K told us that most EU LCS teams are struggling with money. Might work with franchising, but only if enough good teams join up at the start. The problem with this leak is that not enough details are given about the upper league, which sounds very similar to EULCS as we know it. On September 06 2017 16:17 cLutZ wrote: Show nested quote + On September 06 2017 14:04 Kaneh wrote: I think regions is good. Its easier to find someone to sponsor a french thing, an english thing, a german thing, and a spanish thing for 1000$ each than it is to find someone willing to throw down 2000$ for the whole package. I think the overall money coming in is going to be better, the same reason NA makes so much more money is the reason separate regions with separate marketing is going to be better for sponsorship. This also creates more natural interest in the 'champions league' as you want to root for your region. I think this is a great move to generate interest and money for EU. The biggest problem is the initial formation is going to require a ton of new teams. I hope more football teams buy in like PSG and Schalke did cause getting this off the ground i think is the hard part. Also its a fee to buy a license to join the league for X years. Give the guarantee return on investment and solves the problem of the cheapo rosters not getting removed. Also gives more control to riot which can be a good/bad thing. Overall i dont' really see a downside. It's essentially franchising but split into regions to make it easier to invest. I don't see how it makes it easier to invest. The problem is too little money per team, more than doubling the#of NA teams in EU means they need to more than double the money of NA.Unless they are selling out Wembley.or Camp Nou every week at the mini LCS its not gonna happen. This is, of course, a fundamental problem with the LCS model itself. Regular season games so not generate nearly the viewership or attendence #s that tournaments do per broadcast, but still require just as many resources per broadcast. In many ways it requires more resources because it means you have to maintain all these low level teams, but they need to be decent for league play to be compelling at all. Let's use Coke as an example. If an NA team wanted to go after a Coke sponsorship, it would be pretty easy. I'm not sure if there's a Coke Canada division, but if there is they could just negotiate with Coke USA and be done with it. Because EU is as fragmented a market as it is due to cultures and language, there is no Coke EU. There's a Coke France, Coke UK, Coke Germany, and all the money Coke invests into EU is split, so each of those subdivisions has less money to spend on advertising - in this case sponsorships. So there's less incentive for these subdivisions to sponsor teams because those sponsorships don't target their specific area and get as much exposure where it matters for their bottom line. A team won't be able to pick up sponsorships from multiple subdivisions because the Coke name is already slapped on stuff, namedropped, and having their products placed, so once one group sponsors a team, that well has dried up for them. These smaller, regional league will make the impact of sponsoring a team better for the individual sponsors. | ||
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GrandInquisitor
New York City13113 Posts
On September 06 2017 15:52 DarkCore wrote: They need to find enough good teams to fill this many leagues first, otherwise it would be a disaster. I don't want to watch G2 own their region, gain no real form of practice, and then go to worlds to get slaughtered (even worse than before). The overall quality of teams would have to increase for this to work, and H2K told us that most EU LCS teams are struggling with money. Might work with franchising, but only if enough good teams join up at the start. On the contrary, I think this is extremely promising for talent development. You can't break into the scene if there's an exclusive clique at the top that keeps re-hiring the same old awful players because they're buddy-buddy. We live in a world where the third-best EU rookie last split was the fucking MM support - how many of you even remember who he is without looking him up? Are there really that few talented players in EU? Now there's actually opportunity for promising players to get meaningful experience, instead of spending their entire careers wallowing in CS playing against other shitty teams, getting shitstomped by an LCS team twice a year. | ||
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Numy
South Africa35471 Posts
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GrandInquisitor
New York City13113 Posts
On September 06 2017 16:17 cLutZ wrote: Show nested quote + On September 06 2017 14:04 Kaneh wrote: I think regions is good. Its easier to find someone to sponsor a french thing, an english thing, a german thing, and a spanish thing for 1000$ each than it is to find someone willing to throw down 2000$ for the whole package. I think the overall money coming in is going to be better, the same reason NA makes so much more money is the reason separate regions with separate marketing is going to be better for sponsorship. This also creates more natural interest in the 'champions league' as you want to root for your region. I think this is a great move to generate interest and money for EU. The biggest problem is the initial formation is going to require a ton of new teams. I hope more football teams buy in like PSG and Schalke did cause getting this off the ground i think is the hard part. Also its a fee to buy a license to join the league for X years. Give the guarantee return on investment and solves the problem of the cheapo rosters not getting removed. Also gives more control to riot which can be a good/bad thing. Overall i dont' really see a downside. It's essentially franchising but split into regions to make it easier to invest. I don't see how it makes it easier to invest. The problem is too little money per team, more than doubling the#of NA teams in EU means they need to more than double the money of NA.Unless they are selling out Wembley.or Camp Nou every week at the mini LCS its not gonna happen. This is, of course, a fundamental problem with the LCS model itself. Regular season games so not generate nearly the viewership or attendence #s that tournaments do per broadcast, but still require just as many resources per broadcast. In many ways it requires more resources because it means you have to maintain all these low level teams, but they need to be decent for league play to be compelling at all. You are fundamentally misunderstanding the business model of LCS. LCS will never, ever be profitable from viewership or attendance. Not at 24 teams, not at 10 teams, not even if it was two teams playing in Phreak's basement once a month. LCS is a loss leader for Riot. That's the reason it exists - to get people to play League. Riot is willing to lose $X on LCS in order to make $Y on RP. Riot literally pays for TSM, CLG, etc.'s very existence, because that's chump change compared to the amount they make back in RP. So all of this drama stems from the fact that it's kind of awkward for the teams participating in LCS. Are they supposed to be making money like billionaires in the NFL/EPL? Or are they supposed to be losing money like Riot? They want revenue sharing, but the LCS revenue doesn't exist. The money is all in the RP - but how much of that do you attribute that to the teams? How much should they get and how much should Riot get? And whatever percentage you set, the teams will always, always demand more. It's why Riot is very eager to get sponsors and "outside" money to come in. Making the pie bigger is the easiest way to avoid fights over how to divide the pie. And the best way to get sponsorships in EU is to localize the teams, because Coke Germany sure as hell isn't advertising in Barcelona. With localization comes national pride and a stronger fanbase as well. | ||
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Sent.
Poland9299 Posts
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Gahlo
United States35172 Posts
On September 07 2017 00:43 Sent. wrote: So who's paying for all those Pepsi or Nike ads in Champion's League final? Pepsi Spain or Nike Germany? Does that mean Pepsi France gets exposure for FREE??? That's big enough that the different subdivisions can advertise for it properly and not be a big waste of time. League isn't Soccer/Football. | ||
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DarkCore
Germany4194 Posts
It's why Riot is very eager to get sponsors and "outside" money to come in. Making the pie bigger is the easiest way to avoid fights over how to divide the pie. And the best way to get sponsorships in EU is to localize the teams, because Coke Germany sure as hell isn't advertising in Barcelona. With localization comes national pride and a stronger fanbase as well. That I can agree with. Entertainment like esports doesn't generate its own money, it's what's around it, aka the viewership and advertising, where the real money is. Teams probably make some money off merchandise and events maybe, but not much. On the contrary, I think this is extremely promising for talent development. You can't break into the scene if there's an exclusive clique at the top that keeps re-hiring the same old awful players because they're buddy-buddy. We live in a world where the third-best EU rookie last split was the fucking MM support - how many of you even remember who he is without looking him up? Are there really that few talented players in EU? Now there's actually opportunity for promising players to get meaningful experience, instead of spending their entire careers wallowing in CS playing against other shitty teams, getting shitstomped by an LCS team twice a year. Teams aren't rehiring awful players like Kikis because they're buddies, but because bottom LCS is so volatile and teams get shredded when they leave/enter LCS, and those players are the ones who keep coming back, while other talent leaves. Look at the two teams that promoted in the Summer split, MFA and FNA. MFA became MM and took half the FNA roster, who disbanded because NIP bought the spot and negotiations failed. Both teams ended up dead last, they have less combined wins than every other team in the league. Both teams have failed the promos, they're getting replaced by Schalke and Giants, who have a mix of new and old players. From what I've seen, both those teams are retaining their rosters. CS isn't exactly noncompetitive compared to bottom EU LCS, the last two splits both CS teams made it into LCS, and the split before one of the two made it in. But the best talent we've seen has almost always been players who were nurtured in the environment of some big team. Examples would be Caps, Broxah, Contractz, Cody Sun. | ||
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cLutZ
United States19574 Posts
On September 06 2017 19:09 Gahlo wrote: Let's use Coke as an example. If an NA team wanted to go after a Coke sponsorship, it would be pretty easy. I'm not sure if there's a Coke Canada division, but if there is they could just negotiate with Coke USA and be done with it. Because EU is as fragmented a market as it is due to cultures and language, there is no Coke EU. There's a Coke France, Coke UK, Coke Germany, and all the money Coke invests into EU is split, so each of those subdivisions has less money to spend on advertising - in this case sponsorships. So there's less incentive for these subdivisions to sponsor teams because those sponsorships don't target their specific area and get as much exposure where it matters for their bottom line. A team won't be able to pick up sponsorships from multiple subdivisions because the Coke name is already slapped on stuff, namedropped, and having their products placed, so once one group sponsors a team, that well has dried up for them. These smaller, regional league will make the impact of sponsoring a team better for the individual sponsors. I understand the idea, I just don't think it will work nearly that well in practice. Lets say I am G2, and I become G2-London. Right now I go to Coke-UK and they ask me for the viewership #s and ad impressions in the UK and I give them a number, then I say, "look, you also get these incidental impressions in the rest of the EU + America." Then we make a deal. If I become G2-London, the process does not change when I am negotiating with Coke-UK, except the overall (and probably even UK-only) viewership numbers are much lower for my regular play, and I also have this Champions league impressions that I want to monetize (which is probably what sponsors will actually be interested in sponsoring, the teams that make Champions), but its hard to promise that I, G2 will be in it (at least as hard as staying in EU LCS itself, which is one thing that teams have always pointed to as a problem in sponsorship negotiations). No. Team sponsorships are kind of irrelevant to the entire model (and are a red herring). The issue is monetizing the viewers of the entire league with ads (and a league sponsorship is not a bad place to start). Frankly, despite people poo-pooing it, gate/ticket revenues should still be a significant portion of league revenue when esports are this small. For most us pro leagues gate revenue was higher than TV revenue up into the 90s. On September 06 2017 23:45 GrandInquisitor wrote: Show nested quote + On September 06 2017 16:17 cLutZ wrote: On September 06 2017 14:04 Kaneh wrote: I think regions is good. Its easier to find someone to sponsor a french thing, an english thing, a german thing, and a spanish thing for 1000$ each than it is to find someone willing to throw down 2000$ for the whole package. I think the overall money coming in is going to be better, the same reason NA makes so much more money is the reason separate regions with separate marketing is going to be better for sponsorship. This also creates more natural interest in the 'champions league' as you want to root for your region. I think this is a great move to generate interest and money for EU. The biggest problem is the initial formation is going to require a ton of new teams. I hope more football teams buy in like PSG and Schalke did cause getting this off the ground i think is the hard part. Also its a fee to buy a license to join the league for X years. Give the guarantee return on investment and solves the problem of the cheapo rosters not getting removed. Also gives more control to riot which can be a good/bad thing. Overall i dont' really see a downside. It's essentially franchising but split into regions to make it easier to invest. I don't see how it makes it easier to invest. The problem is too little money per team, more than doubling the#of NA teams in EU means they need to more than double the money of NA.Unless they are selling out Wembley.or Camp Nou every week at the mini LCS its not gonna happen. This is, of course, a fundamental problem with the LCS model itself. Regular season games so not generate nearly the viewership or attendence #s that tournaments do per broadcast, but still require just as many resources per broadcast. In many ways it requires more resources because it means you have to maintain all these low level teams, but they need to be decent for league play to be compelling at all. You are fundamentally misunderstanding the business model of LCS. LCS will never, ever be profitable from viewership or attendance. Not at 24 teams, not at 10 teams, not even if it was two teams playing in Phreak's basement once a month. LCS is a loss leader for Riot. That's the reason it exists - to get people to play League. Riot is willing to lose $X on LCS in order to make $Y on RP. Riot literally pays for TSM, CLG, etc.'s very existence, because that's chump change compared to the amount they make back in RP. So all of this drama stems from the fact that it's kind of awkward for the teams participating in LCS. Are they supposed to be making money like billionaires in the NFL/EPL? Or are they supposed to be losing money like Riot? They want revenue sharing, but the LCS revenue doesn't exist. The money is all in the RP - but how much of that do you attribute that to the teams? How much should they get and how much should Riot get? And whatever percentage you set, the teams will always, always demand more. It's why Riot is very eager to get sponsors and "outside" money to come in. Making the pie bigger is the easiest way to avoid fights over how to divide the pie. And the best way to get sponsorships in EU is to localize the teams, because Coke Germany sure as hell isn't advertising in Barcelona. With localization comes national pride and a stronger fanbase as well. Actually no, I get the model from Riot's perspective, but the Riot loss-leader model has been a problem since at latest 2014 (when your statement "Riot literally pays for TSM, CLG, etc.'s very existence" became financially untrue) when the stipends were quickly outpaced by salaries and other LCS-related costs. So, yes, your statement that "its kind of awkward for teams participating in the LCS" is totally true, and it is where the conflict comes from. There are basically 3 types of teams in the LCS right now: 1. Teams founded on League. TSM, CLG, Origen. These teams have owners that are deeply invested in LOL, and need the LOL team to be the face of the franchise. They are loss-leaders for sponsorship networks and websites, and other branded things, kind of like Riot. They would simply be happy breaking even with the team because the rest of the brand would make up for it. 2. Teams that have tons of VC. IMT, new Dig, etc. These teams are in the leagues based on pure speculation that eventually Riot would figure out/be forced to do what they re doing with NA LCS + get additional sponsors (aka calling it the NA LCS brought to you by Coke, run in-stream ads instead of the terrible twitch/youtube ads, etc). If the sponsorship money (not team sponsors, league-wide and viewership sponsors) doesn't come through, these guys leave, and the LCS bubble pops. 3. Teams that are waiting to sell to VC. This is the Flyquests of the world. These guys see all this VC money, and are simply getting their slice before they retire. The fact is that all the teams needed Riot to franchise, or not, and be clear on the amount of money they would be getting from league-wide ads. IMO the valuations are still very high, but the good thing for NA teams is they can cut back on salary once they get their franchise approved and become a "talent seeking" team that looks for gems, then once they hit on a few can sign a few big names and compete for championships for a few years. The real killer right now is being a team like TL who has big money and no results. | ||
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Slusher
United States19143 Posts
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cLutZ
United States19574 Posts
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Slusher
United States19143 Posts
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