Axiomatic, an esports-focused investment vehicle comprised of professional sports team owners from the NHL and NBA, will count The International 7, a Dota 2 tournament held earlier this month, as its first major win after acquiring a controlling stake in Team Liquid last September.
The European-based team made history Aug. 12 as the first ever to sweep the grand finals at The International 7, bringing home nearly all of the $10 million in prize money. In an interview with SportTechie, Axiomatic co-chairman Jeff Vinik, owner of the Tampa Bay Lightning, said the win further justifies why traditional sports team owners are betting on esports.
Led by Vinik, Peter Guber, who owns the Golden State Warriors, and Ted Leonsis, the owner of NHL’s Washington Capitals and NBA’s Washington Wizards, Axiomatic was created so that traditional sports owners could capitalize on esports.
It makes sense, says Vinik, because of the “high overlap” between esports and traditional sports, evidenced by the communities of fans that support their favorite players (in many of these traditional sports teams’ target demographics, no less) and the structured leagues that are beginning to take shape in esports. With structure come all the bells and whistles of any pro league, from media coverage to big-ticket sponsorships.
“From that point of view, the basic fabric of the two different sports are very analogous and the revenue streams – whether putting people in seats in arenas, sponsorships, advertising or media — are very much in common,” he said. “We think bringing our experience from the traditional sports and entertainment worlds to the esports industry is very applicable.”
Vinik believes overlaps will continue to grow between the two industries in the coming years as team owners scoop up esports teams and big brands sponsor major events. Those invested in the success of esports are betting on the continued growth of its loyal fan base, not unlike how traditional sports teams are betting on younger fans for the continued support of their own franchises.
“While esports are played on consoles, PCs and cell phones, it’s competition, great competition, and it’s shared by a community of very invested fans,” said Vinik.
Now that Axiomatic has a pro-league championship win under its belt, it’s beginning to explore how it might be able to make money in other facets of esports as well.
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In June, Axiomatic was one of the lead investors in a $15 million funding round for Super League Gaming, which hosts events in movie theaters and online for amatuer esports players and leagues. The investment company is also looking into technologies that help coach players on the amatuer and professional levels, as well as possibly creating new leagues altogether.
In April, it invested in BITKRAFT, an esports venture fund, which Vinik said gives Axiomatic a unique vantage over the newest technologies emerging and disrupting the esports industry.
Guber, Leonsis and Vinik aren’t the only sports team owners with skin in the game, of course. Over the past year, the NBA as a league has expressed interest in esports, while teams ranging from the Miami Heat to the Philadelphia 76ers have all invested in esports teams.
In May, the NBA announced the NBA 2K esports league, which will include the participation of at least 17 NBA teams when it officially kicks off in 2018.
“One of the exciting things about esports is that it’s very early and still emerging,” said Vinik. “We think there will be many opportunities both at the team level and non-team level that will come to fruition over the next few years.”