Alliance and EG (Evil Geniuses) announced that since Monday (16.12) they are entirely independent as player-owned brands, in a move that counters the current trend of outside investment in esports teams.
you can find the Alliance statement, and here
– the Evil Geniuses one.
This happened after twitch.tv exited its investment in these teams over concerns that it may be seen as a potential conflict of interest. The streaming site became the owner of the teams after purchasing GoodGame back in 2014. Now the company wants to restore the independence of the teams.
So for how long will the teams remain independent?
A popular esports trend over past year has been the acquisition teams by investors. Private equity companies, celebrities as well as traditional sports
teams are currently among the owners of the most famous brands in esports. The new investors have brought new skill sets to building team brands, as well as maximizing revenues from branded products and sponsorships.
The success in tournaments has been all that a team needed to create a fan base, with a little help of individual streaming. However, as the industry is growing
, the extra help of outside investors can is likely to become more crucial.
Owning a team has become quite the serious business. The access to a sufficient cash flow as well as investment capital is currently a factor in if the teams can keep to competing at the highest possible level.
I think that the thrill of being responsible for their management will motivate Alliance and EG. However, it is inevitable that new potential investors will soon knock on their doors.