Investment Analysis: Esports Team Creation for Norling PLC (Report)

This report analyzes the esports industry, focusing on investment opportunities and potential risks for Norling PLC. It explores the definition of esports, its global growth, and the rise of professional gaming. The report examines various revenue models, including team and event revenue, along with potential costs such as player salaries, accommodation, and promotional expenses. It assesses the risks associated with the industry, including consumer preferences and market volatility. The report concludes with advice on investing in esports, emphasizing the potential for profitability and brand building, and suggests that investing in esports can lead to opportunities like money making and creating more teams from surplus revenues, and involving in the esports projects, the company will become very active as an agency which offers e sports related marketing and social media services to its target market. The report references various sources to support its findings.

TASK 2

Esports
 E- Sports also known as electronic sports which is refer as
the video games such as competitive, professional and pro
gaming.
 They come in the form of multiplayer video games which
can create competitions between the professional players.
 A video game culture has organized the online and offline
competitions which are the part of the such events and
spectator-ship.

The international picture of the industry
 E- sports industry is developing day by day because many
of the users are connecting to the video games mostly the
young people.
 South Korea is the first one to established E sports
organizations with official licensing pro games.
 In USA, Canadian League of Legends player has became
the pro gamer. Along with South Korea, Europe, North
America and china has became the large video game market.
 On the contrast to this, Japan is underdeveloped in this
video game activity and this is because of the anti- gambling
laws in the country.

Critically about potential investment and with its
strengths and risks
 The profitability opportunities which can arise from the E
sports team can be due to the brand image of the team.
 There are certain model through which company can gets
their profits such as team revenue models.
 The second model is event revenue models in which stream
tickets, registration fees, event tickets etc.
 The last model can be event organising, partnership with
media and in content advertising.
 Although, these model are not liable to incurred to give
profitability opportunities. However, can act as the source of
revenues.

The potential costs involved in creating a team
 The potential costs involved in creating a team needs different
types of variables. For example, its competitors,number of the
tournaments and its ambitions.
 The potential costs comprises of salaries of all players which
comprises of 5 team members and their salaries can be
estimated as £2786.11 per month.
 On the other hand, Norling PLC has to invest also in
accommodation, flights, clothing etc. for promoting the
sponsors.
 If the Norling PLC want a loyal team of the young talents
which wants to focus on one region that is UK then it will
cost a little £696.53 per month.

The potential risks of investing in this type of
opportunity
 E- sports is the large business which operates globally and it
has just introduced in the market and has captured lot of the
market share.
 Despite of this, the risk should be estimated by the mood
swings of the e sports fans and what they want.
 If this not happen then the consumers can snuff out the false
endorsement or inauthentic sponsorship for the particular e
sports.
 On the contrast to this, the company should make their E
sports according to the tastes and preferences of the lifestyle
of the customers.

Advise on investing in the creation of a team
 It will be effective if one has to invest in the e sports team
because by estimating the cost and its effectiveness, it will
lead to the profitability.
 The investment in the e sports can lead to the opportunities
like money making as well as to create more teams from
surplus revenues.
 By involving in the e sports projects, the company will
become very active as an agency which offers e sports
related marketing and social media services to its target
market.

Figures and financial data

References
 A profitable business: Why game publishers count on eSports.
2016. [Online]. Available through:
<http://esportsobserver.com/a-profitable-business-why-game-
publishers-and-developers-count-on-esports/>. [Accessed on
22nd April 2016].
 Dring, C., 2016. When will eSports start making money?.
[Online]. Available through:
<http://www.mcvuk.com/news/read/when-will-esports-start-
making-money/0107583>. [Accessed on 22nd April 2016].
 E-sports. 2011. [Online]. Available through:
<http://www.urbandictionary.com/define.php?term=esports>.
[Accessed on 22nd April 2016].

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