THE ECONOMIC VALUE OF ESPORTS
Esports events, much like any other major events, are a symphony of various components coming together to create an unforgettable experience. Behind the scenes, there’s a significant financial investment that drives these events, contributing not only to the excitement of the fans but also to the broader economy.
Often, we overlook the economic impact of even a local esports event and its ripple effect on the community and the country as a whole. Let’s take a closer look at the economic value esports events bring, using a recent event in Ghana as a case study, which had an estimated cost of 65,000 Ghana Cedis.
Here are some of the key expenses involved:
1. Venue Rental Cost
2. LED Screen Rental Cost
3. Food and Refreshments
4. Printing of Branded Materials
5. Software Licenses
6. Graphic Design and Creatives
7. Motion Graphic Design
8. Transportation Logistics
9. Live Stream Services
10. PA and Sound Equipment Setup
11. Ambiance Lighting Design and Setup
12. Hospitality for Players and Out-of-Town Guests
13. Prize Pool
14. Internet Data Purchase
15. Standby Generator Rental
16. Logistics Rental (Consoles & Monitors)
17. Manpower and Workforce Honorarium
18. Photography Services
19. Videography Services
20. Extra Display Screens Rental
21. Apparel Design and Production Cost
22. Media Campaign
As you can see, there are numerous stakeholders involved in making an esports event successful. Some work directly on the day of the event, while others contribute behind the scenes. Each of these services, provided by tax-paying companies—both large and small—adds to the economic value that a single esports event brings to a country’s economy. While it may seem like a drop in the ocean, the cumulative impact is undeniably significant.
Every business, regardless of the scale of transactions, plays a vital role in the ecosystem of esports to the economy of a nation.
The key question is: How do we build sustainable economic value where every stakeholder benefits from repeated opportunities?
This is a challenge I’m constantly exploring, and I’d love to hear your thoughts in the comments below.
Esports; when structured and integrated into a robust business model, has the potential to capitalize on three powerful pillars: hashtag#Entertainment, hashtag#Sports, and hashtag#Technology. These pillars can drive growth, create jobs, and foster innovation, making esports a formidable force in the global economy. hashtag#Hospitality and hashtag#Tourism also becomes an offshoot of such esports value prepositions.
As hashtag#Africa we must intentionally continue to explore how we can unlock the full potential of esports, creating more opportunities for everyone involved.
Until next time,
More Vim, More Wins!
Kwesi Hayford
