On July 27th, 2024, Fuego Esports was crowned as the regional champions of the Liga Regional Norte in League of Legends, held in Mexico City. This significant victory marks a milestone for Fuego Esports, a professional esports team based in Curaçao and Colombia.

 

Esports has evolved from casual, small-scale tournaments into a global phenomenon with professional players, significant prize money, and millions of viewers. But who is Fuego Esports? And what exactly are “Esports”?

 

WHO IS FUEGO ESPORTS?

 

About Fuego Esports

Fuego Esports was founded in Curaçao in late 2018 by Jeff Macolonie, a Yu di Kórsou (Curaçao-born and raised) former professional video gamer. Since its inception, Fuego has grown from a small group of passionate gamers into a substantial organization with over 25 skilled individuals across different countries, competing in four different competitive games.

 

The team aims to be one of the biggest organizations and brands in the Esports industry. Additionally, Fuego Esports is dedicated to training and coaching local individuals to become professional gamers, thus contributing to the growth of Esports in the region.

 

Achievements and Expansion

In 2022, Fuego Esports expanded into the Colombian market with a clear objective: to transform the perception of Esports teams in the country.

 

They achieved significant success, winning the Colombian League of Legends league in January 2023, which other teams had dominated for the last four years. This victory secured their spot in the Liga Regional Norte, the most important Tier 2 competition in the northern part of the continent.

 

In February 2023, Fuego Esports secured second place in the Liga Regional Norte, establishing themselves as one of the strongest teams in the region. Their recent triumph as regional champions on July 27th, 2024, solidifies their growing reputation and influence in the Esports scene. The tournament can be watched on the Liga de Video Juegos Profesional región Norte (LVP LAN) YouTube channel.

 

 

WHAT EXACTLY IS ESPORTS?

Esports, short for electronic sports, is a form of competition using video games. It has evolved from casual, small-scale tournaments into a global phenomenon with professional players, significant prize money, and millions of viewers.

 

Esports involves organized, multiplayer video game competitions, particularly between professional players, individually or as teams. Popular Esports games include “League of Legends,” “Dota 2,” “Counter-Strike: Global Offensive,” “Overwatch,” and “Fortnite.”

 

Structure and Tournaments

Esports operates through a series of leagues and tournaments with several levels of competition:

• Amateur Tournaments: Entry-level competitions for casual gamers or those looking to break into the scene.
• Semi-Professional Leagues: Higher-level play where teams and players start gaining recognition.
• Professional Leagues and Major Tournaments: The pinnacle of Esports, featuring the best players in the world and often significant prize pools. Examples include the “League of Legends World Championship,” “The International” for Dota 2, and the “Overwatch League.”

 

Teams and Players

Professional esports teams are structured similarly to traditional sports teams. They include:

• Players: Specializing in specific roles within the game.
• Coaches: Develop strategies, analyze opponents, and guide players.
• Support Staff: Including analysts, psychologists, and physical trainers.

 

Revenue Streams in Esports

Esports generates revenue through various channels:

• Sponsorships: Companies sponsor teams, players, and events, gaining exposure to the Esports audience.
• Advertising: Ads are placed on streaming platforms, in-game, and during live events.
• Merchandising: Selling team-branded apparel, accessories, and in-game items.
• Media Rights: Broadcasting rights for Esports events sold to streaming platforms and TV networks.
• Prize Money: Major tournaments offer substantial prize pools, funded by game developers, sponsors, and crowdfunding.

 

INCORPORATION OF ESPORTS COMPANIES

 

Types of Companies

The Esports industry comprises several types of companies, each playing a unique role:

• Game Developers: Companies like Riot Games and Valve develop the games played in Esports.
• Tournament Organizers: Firms like ESL and DreamHack organize and manage Esports events.
• Teams and Organizations: Entities like Team Liquid and Cloud9 field teams in various Esports titles.
• Streaming Platforms: Services like Twitch and YouTube Gaming broadcast Esports events.
• Support Services: Businesses offering analytics, coaching, and other support services to teams and players.

 

Incorporation and Business Models

Formation and Structure:

• LLCs and Corporations: Most Esports entities are incorporated as Limited Liability Companies (LLCs) or corporations. This provides liability protection and establishes a formal structure for operations and investment.
• Franchises and Partnerships: Some leagues, like the Overwatch League, use a franchise model where teams buy slots in the league, similar to traditional sports.

 

Funding and Investment:

• Venture Capital: Many Esports companies attract venture capital funding due to the industry’s growth potential.
• Crowdfunding: Platforms like Kickstarter have been used to fund game development and Esports initiatives.
• Sponsorships and Endorsements: A significant revenue source, with brands eager to tap into the young, tech-savvy Esports audience.

 

Operations and Revenue Management:

• Multi-Channel Revenue Streams: Successful Esports companies diversify their income through sponsorships, merchandising, media rights, and live events.
• Global Reach: Many Esports companies operate internationally, reflecting the global nature of the gaming community.

 

WHY IT MATTERS

Fuego Esports’ recent victory is not just a testament to their skill and dedication but also highlights the growing importance and influence of Esports.

 

In 2023, the gaming sector continued its rapid growth, fueled by the popularity of mobile gaming, Esports, and online multiplayer games. It is estimated to have generated around $300 billion globally in 2023.

 

In contrast, the film industry, which had reached a peak of $100 billion in 2019, struggled to regain momentum post-pandemic. It remained significantly behind the gaming industry in terms of revenue generation

 

Similarly, the music industry also faced challenges and remained smaller in comparison. While exact figures for 2023 were not specified, historical data indicates that its revenues are substantially lower than those of the gaming sector.

 

As Esports continues to expand globally, teams like Fuego Esports play a crucial role in shaping the future of competitive gaming in the region and fostering new local talent. Locally there still needs to be more awareness on understanding this industry and its importance.

 

 

FINAL THOUGHTS

Esports has grown from niche gatherings to a mainstream spectacle, attracting millions of fans worldwide, driven by the popularity and growth of the video games industry.

The video games industry has surpassed the music and film industries in popularity and profits, making it the number one source of entertainment for the younger generations. The Esports industry’s structure, from teams and tournaments to diverse revenue streams, mirrors traditional sports in many ways while also leveraging unique aspects of the digital age.

As the industry continues to evolve, its economic and cultural impact is set to expand, making esports a key player in the entertainment landscape of the future.

 

References

Fuego Esports. (2024). Fuego announces the partners of the year. Retrieved on July 29, 2024, from https://fuego.gg/2021/01/21/fuego-announces-the-partners-of-the-year/

 

Casique, P. (2024, July 30). Concluye Liga Regional Norte de League of Legends su temporada de clausura 2024 con glorioso título a Fuego. CódigoEspagueti.com. Retrieved on July 31, 2024, from https://codigoespagueti.com/noticias/videojuegos/concluye-liga-regional-norte-de-league-of-legends-su-temporada-de-clausura-2024-con-glorioso-titulo-a-fuego/

 

Esports Earnings. (n.d.). Highest Earnings By Country. Retrieved on July 29, 2024, from https://www.esportsearnings.com/countries

 

Gamepressure. (2023). Video Games Industry Is Bigger Than Film, Sports and Music. Retrieved on July 29, 2024, from https://www.gamepressure.com/newsroom/video-games-industry-is-bigger-than-film-sports-and-music/z83c22

 

LVP. (2024). Fuego se corona campeón de la Liga Regional Norte. Liga Regional Norte. Retrieved on July 29, 2024, from https://lrn.lvp.global/noticias/fuego-se-corona-campeon-de-la-liga-regional-norte/ Retrieved on July 29, 2024, from https://lrn.lvp.global/

 

LVP LAN. (2024). Gran final – Fuego vs Peek Gaming – Liga Regional Norte 2024 – LEAGUE OF LEGENDS. YouTube. Retrieved on July 29, 2024, from https://www.youtube.com/watch?v=oaSZ2F59sVg&ab_channel=LVPLAN

 

Nasdaq. (2023). This Opportunity for Investors Is Bigger Than Movies and Music Combined. Retrieved on July 29, 2024, from https://www.nasdaq.com/articles/this-opportunity-for-investors-is-bigger-than-movies-and-music-combined

 

Newzoo. (2022). Newzoo’s Global Esports & Live Streaming Market Report 2022. Retrieved on July 29, 2024, from https://newzoo.com/resources/trend-reports/newzoo-global-esports-live-streaming-market-report-2022-free-version

 

Taylor, T. L. (2018). Watch Me Play: Twitch and the Rise of Game Live Streaming. Princeton University Press. Retrieved on July 29, 2024, from https://press.princeton.edu/books/paperback/9780691183558/watch-me-play

 

TechRadar. (2023). Gaming industry valued over $300 billion – It’s higher than movies & music together. Retrieved on July 29, 2024, from https://www.techradar.com/news/gaming-industry-valued-over-dollar300-billion-its-higher-than-movies-and-music-together

 

Special thanks to Mr. Jeff Macolonie, Founder and CEO of Fuego Esports, for his collaboration on the article.