The esports industry has seen massive growth over the past decade. Valued at over $1 billion globally, esports draws in millions of passionate fans and participants worldwide. This rapid expansion has caught the attention of investors across industries – including the NBA.
Several current and former NBA stars have invested in esports teams and organizations. Their high profiles and deep pockets provide esports with increased visibility, credibility, and capital to continue growing.
Why NBA Players are Investing in Esports
Several key factors are driving NBA player interest and investments in the esports industry:
Potential for High Returns
As a rapidly growing industry, esports offers a major upside for investors. Total eSports viewership is expected to grow at a 9% compound annual growth rate (CAGR) between 2019 and 2023, up to 646 million viewers according to Newzoo. This type of massive engagement suggests room for teams, leagues, and ecosystem sponsors to generate significant revenues moving forward.
Seeing the writing on the wall, NBA players want exposure to an industry primed for huge gains in the coming years. Their capital can help spur and capture this growth.
Synergies with Basketball
There are several areas where basketball and esports synergize effectively:
- Shared audiences – There is roughly a 65% overlap between esports and NBA viewership, offering cross-promotional opportunities.
- Events held in arenas – Top esports events sell-out basketball arenas for tournaments and finals.
- Existing business relationships – NBA team owners and players have deep ties with sponsors, media companies, and other partners who are moving into esports.
Leveraging these synergies can benefit both NBA stakeholders and their esports investments.
Personal Passion
Many NBA players are gamers themselves. All-Stars like Ben Simmons and Gordon Hayward stream popular titles like League of Legends and Fortnite.
Players can invest in an industry and ecosystem they are genuinely passionate about.
Major NBA Player Esports Investments
Dozens of current and former NBA players have made significant investments in esports companies, teams, and events. Some of the most notable include:
Michael Jordan
The basketball GOAT invested in aXiomatic Gaming, an esports investment group, in 2018.
aXiomatic owns the major esports team Team Liquid, one of the most successful global esports franchises.
Kevin Durant
Durant has made multiple esports investments, like leading a $38 million Series B funding round for Vision Esports in 2018. He’s also an investor in esports ownership group Andbox, which operates the New York Subliners Call of Duty League Franchise.
Shaquille O’Neal
Along with former MLB stars Alex Rodriguez and Jimmy Rollins, Shaq owns an esports team – NRG Esports.
The brand fields competitive rosters across titles like Rocket League, Fortnite, and Apex Legends.
Steph Curry
The sharpshooter invested in leading esports organization TSM in 2018 as part of a $37 million funding round. TSM is one of the most valuable and successful brands in all of esports.
Magic Johnson
In 2017, Magic was part of an investment group that purchased a controlling interest in Team Liquid, now one of the biggest names in the industry. He also personally sponsors multiple esports athletes.
Andre Iguodala
In 2018, former Golden State Warriors forward Iguodala convinced teammate Steph Curry to join him in a $37 million investment into Team SoloMid (TSM). This deal aimed to capitalize on TSM’s assortment of championship rosters across League of Legends, Super Smash Brothers, and other popular titles.
Iguodala himself is an avid gamer and tech investor through his firm Avant Garde Capital.
He continues to explore opportunities connected to sports fan engagement and gaming.
Sources:
theleadsm.com/the-nba-icons-invested-in-esports/
www.sportskeeda.com/basketball/news-top-5-nba-players-invested-esports-featuring-michael-jordan-stephen-curry
