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The future of esports in the Olympics

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The future of esports in the Olympics

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Content 1
THE FUTURE OF ESPORTS IN THE OLYMPICS
By
Chloe G. Chrysikopoulos
A Thesis Presented to the
FACULTY OF THE USC GRADUATE SCHOOL
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the
Requirements for the Degree
MASTER OF ARTS
(SPECIALIZED JOURNALISM)
August 2019
Copyright 2019 Chloe G. Chrysikopoulos
2
Table of Contents

Introduction 3

Growth of esports 4

Esports media rights and viewership 4

Esports sponsorship and advertising 7

Esports tournaments and prize pools 8

Olympic games and esports viewership 9

Esports and its challenges 11

IOC and GAISF host an esports forum 11

IOC admissions process 13

Landscape of esports 15

Lack of physicality in esports 16

Esports training programs 17

Notable names in esports 19

Violence in esports 20

Esports game selection process 21

Esports steps toward inclusion 23

LA as an esports hub 24

Bibliography 26

3
Introduction

With the final seconds still ticking down on the game clock, Matthew “FormaL”
Piper abandoned his console to embrace his OpTic teammates.

FormaL had executed a pivotal play, taking down a satellite drone in midair, a
move that won his team the 2017 Call of Duty World League championship in
Orlando, Florida, and made him MVP.

All he could say afterward: “Oh, my god.”

A scene just like this at the Olympics could happen as soon as 2024 in Paris.

Or could it?

Organizers of the Olympics have considered adding esports as an Olympic sport,
and this past July, the International Olympic Committee [IOC] held a forum with
esports representatives to learn more.

Esports is rapidly growing worldwide. It attracts a young audience, generating
revenue through a large sponsorship and media rights sector with prize pools for
tournaments in the millions.

These are strong arguments for esports to be added to the Olympics. The Games
are trying to stay relevant – looking to appeal to a younger audience. The IOC
needs money to fund the Olympic movement, support the Games, operate on a
daily basis and support its athletes and sports.

But the landscape of esports is not cohesive. There is no organized federation
overseeing the gaming community. Game companies own the rights to leagues and
games. There are many options for games that could be included, but many also
include violence, which does not align with Olympic values. And the lack of
physicality in gaming is an issue – can esports athletes be considered true athletes?

“There is a stubbornness on both ends. The IOC isn’t entirely sold in on the idea of
esports. They don’t think it’s necessary. They don’t see the value in it… The only
nice carrot [for esports] is the revenue component, but I don’t think that esports
needs that to move the industry forward, and the Olympics is not going to make or
4
break that…” said Rishi Chadha, head of gaming content partnerships at
Twitter.
1

On the other hand: “They [the Olympics] would have new audiences to sell.
There would be more people watching those games and younger people
watching those games – they would probably be able to turn that into some sort
of advertising or sponsorship revenue,” said Ben Fischer, esports and Olympic
journalist for the SportsBusiness Journal.
2

Growth of esports

The Olympics is trying, always, to remain relevant. The digital revolution has
changed the way the world eats, shops, reads, stays informed and communicates. It
has also changed the world of sport.

In 2018, the entire esports industry was valued at $865 million. The industry is
expected to be a $1.7 billion market by 2021, according to Forbes.
3

Media rights and sponsorships are growing rapidly. “As a business, esports is now
entering a new and critical phase toward maturity,” said Peter Warman, CEO of
Newzoo, an esports analytics and market research publication, in a 2018 article in
Newzoo.
4

Esports media rights and viewership

Twitch is an important streaming platform and community for gamers that Amazon
bought for $970 million in 2014. The site allows anyone to stream themselves
gaming, watch other gamers stream and comment on the action. Twitch has more
than 2 million streamers per month, 9.7 million active daily viewers, and an

1
Rishi Chadha (head of gaming content partnerships at Twitter), discussion with the author, April 1, 2019.
2
Ben Fischer (esports and Olympic journalist, SportsBusiness Journal), discussion with the author, April 20, 2019.
3
Perez, Matt. "Report: Esports To Grow Substantially And Near Billion-Dollar Revenues In 2018." Forbes.
February 21, 2018. Accessed April 01, 2019. https://www.forbes.com/sites/mattperez/2018/02/21/report-esports-to-
grow-substantially-and-near-a-billion-dollar-revenues-in-2018/#6d8246462b01.
4
Pannekeet, Jurre. "Global Esports Economy Will Reach $905.6 Million in 2018 as Brand Investment Grows by
48%." Newzoo. February 21, 2018. Accessed April 01, 2019. https://newzoo.com/insights/articles/newzoo-
global-esports-economy-will-reach-905-6-million-2018-brand-investment-grows-48/.
5
engagement rate of 106 minutes watched per person per day, according to its
website.
5

The challenge with measuring viewership in esports is that there are so many
different definitions. For example, in television, an average minute audience is
used as a viewership rating, which is how many people on average watch the
content for a minute. But in gaming, “max concurrent” is often used as a
viewership rating, which means at any given second or moment, how many people
are watching.

“Trying to get everyone to get over to an average minute number, which is a
Nielsen number, has been a big challenge because then the big, shiny max
concurrent number goes away and there may even be a big disparity between what
an average minute audience is versus a max concurrent. Everyone wants to pick
the stat that makes them looks the best, to compliment the story they are trying to
tell,” said Chadha.
6

Goldman Sachs believes esports will soon be as popular – or more – as the NFL.
“By 2022, esports will have 300 million viewers like the NFL,” according to a
report published by Goldman Sachs.
7

More people watch gaming video content than HBO, Netflix, ESPN and Hulu
combined. Gaming video content refers to online videos and live streams related
to all things gaming. And the audience for GVC [gaming video content] is more
than twice the size of the U.S. population, according to Super Data, a Nielsen
Company.
8

Nielsen’s goal is to create a system close to a TV rating for esports broadcasts,
using data from the major online streams – Twitch, Facebook, YouTube and
other important metrics specific to brand clients.

5
"For the First Time Ever, Gamers Now Finally Have a True Social Network Suited for Them. Millions Gather
Every Month to Broadcast, Watch, and Talk about Video Games.*." Audience | Twitch Advertising. September
2017. Accessed April 1, 2019. https://twitchadvertising.tv/audience/.
6
Chadha
7
Ross, Katherine. "By 2022, Goldman Sachs Thinks Esports Will Have 300 Million Viewers Like the NFL."
TheStreet. June 26, 2018. Accessed April 20, 2019. https://www.thestreet.com/technology/fortnite-helped-broaden-
esports-audience-goldman-sachs-says-14634562.
8
"Gaming Video Content." SuperData Research | Games Data and Market Research » Gaming Video Content.
Accessed April 1, 2019. https://www.superdataresearch.com/market-data/gaming-video-content/.
6
Nielsen has created an esports division. Nielsen released its first report last year,
which measured the habits and demographics of esports viewers in Germany, the
United Kingdom, France and the United States. It released a second report this year
with a focus on viewership in Asia, specifically China and Japan.

Esports teams and leagues have partnered with Nielsen. Activision Blizzard, an
American video game and film holding company, uses Nielsen’s average-minute
audience metric to measure data. The goal of the partnership is to help sponsors
analyze the Overwatch League, a professional esports league for the video game
Overwatch.
9

This year, esports is estimated to generate $100 million in media rights. That figure
is estimated to grow to $400 million by 2021. The share of revenues for the trade
of content rights is estimated to grow from 18% this year to 24% in 2021, which
means media rights are the fastest growing revenue stream, according to Newzoo.
10

“There has been tremendous growth … As soon as esports became a sport in the
eyes of the media, that’s when everything took off,” said Rodger Saffold, an NFL
lineman who recently relocated to the Tennessee Titans and co-founder of the
esports organization Rise Nation, adding, “There are going to be extreme amounts
of revenue all over the place. There really is no limit – no ceiling – to how high it
can go. But for right now, it’s exceeding its expectations.”
11

Facebook and YouTube are challenging Twitch in the media rights space.

And MLB Advanced Media’s BAMTech has a $300-million-plus development
deal with Riot Games, which created interest from streamers and broadcasters.
Riot’s “League of Legends” is the most popular game in the world with 100
million active players monthly and 14.7 million concurrent viewers at last year’s
world finals, according to an article in the SportsBusiness Journal.
12

9
"Nielsen Releases Unprecedented Insights on Esports Fan Attitudes and Behaviors Leveraging Twitch Data."
What People Watch, Listen To and Buy. December 13, 2018. Accessed April 1, 2019.
https://www.nielsen.com/us/en/press-room/2018/nielsen-releases-unprecedented-insights-on-esports-fan-
attitudes.print.html.
10
"Understanding Media Rights in Esports | Newzoo & Esports BAR." Newzoo. Accessed April 1, 2019.
https://newzoo.com/insights/trend-reports/understanding-media-rights-in-esports-newzoo-esports-bar/.
11
Rodger Saffold (guard, Tennessee Titans and owner of esports team Rise Nation), in discussion with the author,
February 8 2019.
12
Fischer, Ben. "Unlocking Media Riches in Esports." Sports Business Daily. February 27, 2017. Accessed April 1,
2019. https://www.sportsbusinessdaily.com/Journal/Issues/2017/02/27/In-Depth/Main.aspx.
7
“Twitch’s monopoly is in jeopardy for the first time,” said Bryce Blum,
executive vice president of esports for Catalyst Sports & Media, according to
the SportsBusiness Journal.
13

Esports sponsorship and advertising

In 2016, more than 80% of esports total revenue came from sponsorships and
advertising. The majority of the market value was derived from companies such as
Coca-Cola, Nissan, Geico and Red Bull, which sponsor events and gamers. NBA
teams and European soccer teams, meantime, are partnering with esports teams and
franchises.
14

In 2017, companies spent almost $500 million on the esports industry, with $140
million on advertising, $90 million on media rights and over $230 million on
sponsorships.
15

Esports-related revenue will reach $3 billion by 2022, according to estimates from
Goldman Sachs.
16

By 2020, advertising and sponsorship revenue is estimated to reach $1.2 billion,
according to an article in Medium.
17

Intel and Alibaba, both sponsors in the esports industry, have nine-figure global
sponsorship deals with the IOC and have marketing teams in constant contact with
the IOC, according to an article in the SportsBusiness Journal.
18

13
Fischer.
14
Gaudiosi, John. "Why the U.S. Is Killing It in Esports." Fortune. January 27, 2016. Accessed April 1, 2019.
http://fortune.com/2016/01/27/us-is-killing-it-in-esports/.
15
DreamTeam.gg. "Sponsorships Market in Competitive Esports: Up and Running." Medium. November 20, 2018.
Accessed April 1, 2019. https://medium.com/dreamteam-gg/sponsorships-market-in-competitive-esports-up-and-
running-32878447073f.
16
"Esports Joins the Big Leagues." Goldman Sachs. Accessed April 1, 2019.
https://www.goldmansachs.com/insights/pages/infographics/e-sports/.
17
Mok, Jason. "The Esports Phenomenon." Medium. April 16, 2018. Accessed April 1, 2019.
https://medium.com/@jasonmok/the-esports-phenomenon-f070ca2ae673.
18
Fischer, Ben. "Alibaba Signs 12-Year TOP Sponsorship With IOC That Includes E-Commerce Category." Sports
Business Daily. January 19, 2017. Accessed April 1, 2019.
https://www.sportsbusinessdaily.com/Daily/Issues/2017/01/19/Marketing-and-Sponsorship/Alibaba.aspx.
8
Intel held an esports activation during the 2018 Pyeongchang Winter Olympics in
Korea, which took place outside Olympic Park. It was a small Intel Masters
tournament, featuring Blizzard Entertainment’s “StarCraft II.”

“Insofar as esports is coming to the Olympics in any meaningful way in the short
term, it’s happening through Intel’s sponsorship of the Olympics. Just before the
Korea Winter Olympics, Intel ran an IEM Pyeongchang event, with the Olympic
rings on the logo and a more Olympics-style approach to qualifying. It was a big
first step, the first time the Olympic rings were used in an esports context. But it
was really Intel putting it on,” said Fischer.
19

Esports tournaments and prize pools

The number of esports tournaments has grown exponentially in the last 10 years.
What were small amateur tournaments have become huge spectacles with trained
players and millions of fans.

And prize pools are growing. The 2017 Dota 2 International Tournament in
Seattle, Washington prize pool was $23 million. Compare that to the prize pool at
Wimbledon: $16 million for both the men’s and women’s singles winners,
according to Goldman Sachs.

“In traditional sports like the NFL, NBA and MLB – specifically NFL, you never
ask what the prize money for the Super Bowl was, you only care about the fact that
you got the Lombardi Trophy. And that’s the difference in esports – it’s always
about the prize money, the most prestigious event. I think we are getting better
about it … but prize money is a huge component for a lot of these tournaments,”
said Chadha.
20

Bigger prize pools have increased viewership, and player earnings for esports
athletes are resembling earnings in traditional professional sports, according to
Goldman Sachs.

19
Fischer
20
Chadha
9
Richard Tyler Blevins, known as Ninja, from Detroit, Michigan, is an esports
athlete who earns about $1 million per month streaming on Twitch, according to
Goldman Sachs.
21

“In general, esports athletes don’t have a lot to gain from it, but you know when
Proctor & Gamble and Toyota decide that you’re going to be the face of Team
USA, your life changes overnight, even if it’s not money, exactly. It’s that
platform. For some of them [esports gamers], if it became an Olympic sport, they’d
have a lot of new opportunities open up,” said Fischer.
22

The top tournaments for sponsorship deals include Dreamhack, Intel Extreme
Masters, League of Legends World Championship, League of Legends Pro League,
and ESL Pro League among others. These tournaments draw the attention of
traditional sports events such as the Super Bowl or the UEFA Champions League in
soccer.
23

“The thing is that when you go to these events,” said Saffold, “the experience is
what people hold on to, so they can watch it on TV and feel the same kind of
energy from home. You’ll see some of these games get more viewers than what
you see at the World Series. It’s crazy the amount of people tuning in.”
24

Olympic games and esports viewership

Consider the television demographic:

The median age of U.S. spectators was 47 for the 2008 Beijing Olympics, 48 for
the 2012 London Olympics and 55 for the 2014 Sochi Winter Olympics. The Rio
Olympics saw a 30% decrease in viewers aged 18 to 34, according to an article in
The New Republic.
25

“The Olympics need people to watch under the age of 30 more than esports needs
the exposure but… I always use my mom as a good example of that. She’s now

21
Goldman Sachs
22
Fischer
23
McCaffrey, Kathleen. "Esports Is Overturning Sport As We Know It - How Can Brands Get In On The Action?"
Medium. December 6, 2017. Accessed April 1, 2019. https://medium.com/lhbs-collection/esports-is-overturning-
sport-as-we-know-it-how-can-brands-get-in-on-the-action-980161e649f.
24
Saffold
25
Chang, Clio. "How the Olympics Lost Millennials." The New Republic. August 17, 2016. Accessed April 1,
2019. https://newrepublic.com/article/136096/olympics-lost-millennials.
10
65… and there are a lot of athletes and a lot of sports she knows only because of
the Olympics. And does esports need my mom to care about it? No, but the
universe of people who don’t know about esports – but would know about esports
if it were ever a part of the Olympics – is massive,” said Fischer.

Esports has a young, digital and global audience – 79% of the viewers are 35 and
under, according to Goldman Sachs.
26

“I think if they [the Olympics] are trying to go young,” said Arash Markazi, sports
columnist for the Los Angeles Times, referring to the IOC, “that certainly helps by
going after a demographic that is as young as they [esports] are. I think it would
help - I think that would give them something new and fresh.”
27

A Washington Post poll conducted in 2018 found that 38% of young Americans
identified as fans of esports or competitive gaming, similar to the 40% who said
they were fans of the NFL. Professional football is traditionally thought of as
America’s dominant spectator sport with a significant following in the United
States.
28

“It might be something like volleyball where there are a lot of people who
normally don’t watch it and don’t know all the rules – but it quickly becomes one
of their favorite to watch during the Olympics,” said Jordan Rambis, executive in
residence for video games and esports for the city of Los Angeles, former VP of
business development at aXiomatic Gaming, the holding company for Team
Liquid. “Do I think a high percentage of 60-year-olds who don’t play video games
will become esports fans? No. But I think casual gamers could become more aware
of the esports side. So I think it benefits both gamers to feel more included and see
their favorite players in a separate competitive structure than traditional esports.
And I think it would benefit the Olympics by attracting a younger viewership
base.”
29

The esports audience is predominantly males ages 13 to 40 from Europe, North
America and Asia. About a third of esports fans are female. Fans in the 36-to-50

26
Goldman Sachs
27
Arash Markazi (sports journalist, Los Angeles Times), in discussion with author, March 19 2019.
28
Ingraham, Christopher. "These 3 Charts Show the Rapid Rise of Esports." World Economic Forum. August 30,
2018. Accessed April 01, 2019. https://www.weforum.org/agenda/2018/08/the-massive-popularity-of-esports-in-
charts.
29
Jordan Rambis (president/co-founder at Geex.gg, EIR for video games and esports for the city of L.A.), discussion
with the author, March 21

2019.
11
age range make up not quite 7% of the viewership, according to an article in
Forbes.
30

“With esports, you get a whole different group of viewers added to the mix, and it’s
just the direction the world is going in,” said Saffold, the Tennessee Titans’
lineman. “We don’t know how far the games will go.”

“In the digital era, esports will not just be established as a major sport, but also the
most beloved sport,” predicted Byung Hun Jun, president of IESF, the
International eSports Federation, based in South Korea, according to the
Guardian.
31

Esports and its challenges

Without question, esports are on the rise. But a bevy of political, financial,
bureaucratic and logistical hurdles must be overcome before esports might ever
appear on the Olympic program.

It’s indisputable that esports generates revenues in the billions globally. For all
that, the IOC, ever seeking to be relevant to and among its target audience, is
perhaps most intrigued by the undeniable appeal esports carries among teens and
20-somethings.

At the same time, it’s unclear whether esports meets the most essential test: Is it a
sport? Further, the development of esports is still in such an early stage that it has
yet to be organized in the typical manner of those now on the Olympic program, a
significant barrier to entry. Then there’s a most contentious issue: Many games
involve violence, and IOC President Thomas Bach – who often notes that the
organization is “values-based” – is emphatically on record as saying that such
games cross an IOC “red line.”

IOC and GAISF host an esports forum

30
Miachon, Nicolas. "Esports Is The Next Biggest Frontier In Influencer Marketing." Forbes. June 28, 2018.
Accessed April 1, 2019. https://www.forbes.com/sites/forbescommunicationscouncil/2018/06/28/esports-is-the-
next-biggest-frontier-in-influencer-marketing/#4a0b01776d7b.
31
Hattenstone, Simon. "The Rise of Esports: Are Addiction and Corruption the Price of Its Success?" The
Guardian. June 16, 2017. Accessed April 1, 2019. https://www.theguardian.com/sport/2017/jun/16/top-addiction-
young-people-gaming-esports.
12

Last July saw a gathering in Switzerland of more than 150 representatives from the
esports and Olympic worlds – including the International esports Federation
[IESF], the Asian esports Federation [AESF], teams, media, players, sponsors,
publishers, event organizers, National Olympic Committees, the IOC, international
sports federations, the Global Association of International Sports Federations
[GAISF], athletes, partners and broadcasters.

GAISF and IOC co-hosted. The forum was moderated by Rick Fox, a former
championship professional basketball player who created his own esports franchise
– Echo Fox.

“I am proud to have the opportunity to support the beginning of a discussion
between the Olympic movement and the world of esports,” said Fox at the forum,
according to an article published by the IOC. “I’ve been fortunate to have a career
involving both basketball and esports, and I think today reflected the passion that
exists in sport and esports and also highlighted ways in which we could work
together.”
32

Fox is a founder of Venture Partners, a private equity firm that owns esports
franchises. His mother, Dianne Gerace, was a track and field athlete in the 1964
Olympics, representing Canada.

“He really has a bridge with that Olympic world, and now heavily in esports,” said
IOC Sports Director Kit McConnell, according to that article published by the
IOC.

The forum focused on areas of commonality and a possible future collaboration
between esports and the Olympic movement.

A wide range of topics were explored, among them media and broadcasting,
governance and investment in the esports industry. Esports does not have a single
point of contact that represents the ecosystem, because it is a commercially driven
model. This is a key factor that differentiates esports and traditional sports.

Further:

32
IOC. "Olympic Movement Esports and Gaming Communities Meet at the Esports Forum - Olympic News."
International Olympic Committee. February 5, 2019. Accessed March 31, 2019.
https://www.olympic.org/news/olympic-movement-esports-and-gaming-communities-meet-at-the-esports-forum.
13
Could esports could be recognized as a sport, and if so, how could it be represented
within the Olympics? Due to the fact that an organization does not exist that
represents esports globally, the question of whether esports could be included in
the Olympic program was not explored.
33

“We have a pretty good understanding of the overall industry and the way it works,
which is very different from the traditional sports model,” said McConnell in an
interview with the Esports Observer. “Being able to have that conversation about
the structure, the commercial rights and what that means in terms of working
together, where the points of commercial sensitivity are, is a really important part
of the day.”
34

“I think that part of what everyone needs in this whole world is more experience
working with each other – a better understanding of how things work. And a lot of
American esports people that went over to Switzerland in the summer of 2018
came back to me and said it’s great to just understand where everyone’s mind is,”
said Fischer.

IOC admissions process

It is indeed a process, typically lengthy, before any sport can appear on an Olympic
program. It takes years to create an international federation. There is, for instance,
an international track and field federation, an international rowing federation and
an international swimming federation.

And, as of 2009, the IESF, based in South Korea.

Though it has been in existence for 10 years, IESF is – by comparison with other
big-name Olympic sport federations – decidedly low-key.

“For esports to be included in the Olympic program, first of all, we would have to
deal with a single, recognized federation or body that represented the whole of the
esports community, the same way we deal with FIFA for football, the IAAF for
athletics, and so on,” McConnell told the Esports Observer.

33
Rachel Rominger (media relations officer at the IOC), in discussion with author, February 13 2019.
34
Ashton, Graham. "Rick Fox Confirmed as Host for Olympic Committee's Esports Forum." The Esports Observer.
July 11, 2018. Accessed March 31, 2019. https://esportsobserver.com/esports-ioc-forum-outline/#).
14
IESF’s avowed goal is to “promote esport as a true sport beyond language, race,
and cultural barriers.”
35

“On behalf of GAISF and the IOC, I would like to thank all the participants at
today’s forum. One thing in particular was clear from these fascinating discussions
– we are united by passion for our sports and a shared love of competition. That’s
a positive starting point for further discussions about possible future cooperation
between the Olympic and esports communities,” said then-GAISF president and
IOC member Patrick Baumann, according to an article in SportTechie.
36

Baumann, considered one of the most dynamic figures in the Olympic space and a
leading contender to be the next IOC president, died of a heart attack last October
13.

Organization of an international sports federation is the first step. Next is IOC
recognition. Still, those are hardly guarantees of Olympic inclusion.

Because there is then a further step.

The IOC must vote to accept new sports into the program. The sports are evaluated
on a wide variety of factors that include history and tradition, popularity,
development, revenue and governance of the sport.

This is where Baumann, for instance, undoubtedly would have played a vital role;
he was a key bridge between the esports and Olympic worlds, and how the two
camps move forward without him remains to be seen.

“I think it is one of the hardest things ever to get,” said Renato Paiva, executive
director of the San Diego-based Access Youth Academy, who was part of the
unsuccessful bid to get squash into the 2012 London Summer Games.

“I think the IOC and Vatican are the most secretive groups in the history of the
planet. Imagine if you want to get something through the Vatican - it’s an immense
amount of hoops to go through and the IOC was the same. It’s very tough to get
in.”
37

35
"Iesf." IESF - International Esport Federation - IeSF. Accessed March 31, 2019. https://www.ie-sf.org/iesf/.
36
Lemire, Joe. "IOC Hosted First Esports Forum as Gaming's Olympic Inclusion Edges Closer." SportTechie. July
24, 2018. Accessed March 31, 2019. https://www.sporttechie.com/ioc-esports-forum-olympic-games-inclusion/.
37
Renato Paiva (executive director at Access Youth Academy who was part of the bid squash to get into the
Olympics), discussion with the author, April 5

2019.
15

The IOC also analyzes a sport’s image, fan base, caliber and number of athletes,
infrastructure and media footprint.

Beyond all that, the IOC has a cap on the total number of athletes and disciplines
worldwide, roughly 10,500 and 300 – so if it is going to add esports, the numbers
have to give elsewhere, which means from other sports…which means political
pushback.

"You have a long list of sports trying to get onto the program because it is their one
way to showcase their sport to the world," said former IOC marketing director
Michael Payne, according to an article in CNN.
38

One final consideration:

A sport must also be a member of the Swiss-based GAISF, the umbrella
organization for both Olympic and non-Olympic sports federations. For IESF,
membership is pending: “The organization is currently working hard to receive
GAISF membership status,” said IESF President Jun, according to the
organization’s website.

There is skepticism of GAISF, even within the esports community.

Landscape of esports

The biggest challenge esports faces is – to be blunt – disorganization.

It lacks leagues such as the NFL or NBA that create a set schedule of regular-
season games, playoffs and championships.

For now, esports is the “Wild West” with a "fractured landscape and lack of
cohesive calendar," said the first head of the esports Integrity Commission, Ian
Smith, in an article in Ad Age.
39

38
McGowan, Tom. "Perfect Pitch: How to Get a Sport into the Olympics." CNN. August 14, 2012. Accessed March
31, 2019. https://www.cnn.com/2012/08/14/sport/squash-olympic-games-2020/index.html.
39
Schultz, E.J. "Behind the Rise of Esports and What It Means for Brands." Advertising Age News RSS. April 3,
2017. Accessed March 31, 2019. https://adage.com/article/news/e-sports/308447/.
16
Esports events are run by various media companies and game publishers. It is
difficult to know what events are important and how they might, can or should fit
into the larger esports landscape.

“We do not see an organization or a structure that will give us confidence, or
guarantee, that in this area the Olympic rules and values of sport are respected and
in place, and that the implementation of these rules are monitored and secured,”
said Bach in Sports Illustrated.
40

Lack of physicality in esports

The IOC has never let chess, bridge or other mind games into the Olympics. The
IOC recognized the International Sports Federation of bridge in 1995, and the
International Sports Federation of chess in 1999. Neither has come remotely close
to being accepted into the Games.

Both chess and bridge applied for inclusion in the 2020 Tokyo Summer Games. A
key reason they were denied: They lack significant physical activity.

“Our job is to get the couch potatoes off the couch and make sure that they get
active,” said Bach in an article on the Olympic website.
41

On the surface, it would seem esports gamers are the very definition of couch
potatoes. Gamers sit in front of a console and demonstrate mastery with a
controller.

But in a 2017 summit, the IOC agreed esports could be considered a sporting
activity due to the level of intensity at which gamers train and compete.
42

“It’s not a physical sport,” said Markazi, “but the hand eye-coordination is a big
deal. I always point to the fact that no one who is a very good player or who is
professional is past the age of 26 or 27. That is very much like a traditional sport
where some of the best players are 30 or younger. That goes to the whole hand-eye

40
Wire, SI. "IOC President Unsure about E-sports in the Olympics." SI.com. April 25, 2017. Accessed March 31,
2019. https://www.si.com/olympics/2017/04/25/esports-olympics-ioc-president-thomas-bach-comments.
41
"IOC President Looks into the Future of Technology, Society and Sport." International Olympic Committee.
February 26, 2016. Accessed March 31, 2019. https://www.olympic.org/news/ioc-president-looks-into-the-future-of-
technology-society-and-sport.
42
IOC
17
coordination and the ability to practice as much as they do and play as much as
they do. So, it takes skill.”
43

As with traditional sports, professional players compete on a far different level
than does an average player.

“Pro athletes and esport athletes are constantly evaluating their opponents:
assessing weak points where they might have an advantage, taking risks where
they feel like they can outperform their opponent, and strategically toying with
their opponent in an attempt to bait them – just like a pump-fake,” said Rambis.

Increasingly, traditional athletes at the top of their fields are accepting esports
gamers as competitive athletes.

“For some people, that’s kind of like their jobs,” said Todd Gurley, running back
for the Los Angeles Rams and avid Call of Duty player. “They just play the game
and, you know, it’s become a thing now, so it’s like … it is a sport now. I mean,
for sure. It definitely is now.”
44

But not all are so quick to accept esports athletes as Olympic athletes.

“What these guys do is difficult and respect to them for being able to do what they
do at the level they do,” said McQuin Baron, USA men’s water polo player on the
2016 Olympic team. “But the Olympic Games to me is athletic ability, and video
games just doesn’t correlate in that sense in my head; it might be because I am that
‘dumb jock.’ I just don’t understand how they could come out in the opening
ceremony as a gamer, and I work out for 12 hours in the pool and weight room and
we are both here.”
45

Esports training programs

IMG Academy, a boarding school and sports training facility in Bradenton, Florida
trains athletes across numerous disciplines and has eight full-time sports, including
tennis, football and soccer. But the school trains athletes from nearly any discipline
through its Athletic & Personal Development Program (APD). Among the trainees

43
Arash Markazi (sports journalist, Los Angeles Times), in discussion with author, March 19, 2019.
44
Todd Gurley (running back, Los Angeles Rams and Call of Duty gamer), discussion with the author, February 8,
2019.
45
McQuin Baron (USA men’s water polo player, 2016 Olympic team), discussion with the author, April 5, 2019.
18
of IMG’s APD program have included esports teams such as FaZe Clan and
Complexity Gaming.

There, FaZe Clan held a three-day training camp in preparation for a Call of Duty
tournament. Training included stretching, weightlifting, nutrition education and
vision/reaction time training.
46

“They chose this as a profession, and they see this as a job. You can utilize that as
a motivating factor when it comes to influencing their nutrition habits because
there is a lot of money on the line, because they are going to make more money
than probably I will ever make in my lifetime, doing gaming. There is a lot of
money on the line for these athletes, and they take their training very seriously,
which is why they compete so much and train so much … because there is a lot of
money on the line,” said Jackie Barcal, head of nutrition at IMG Academy.
47

Barcal worked with esports athletes at IMG academy on the importance of proper
nutrition, and taught them how it can impact both physical and mental
performance.

Full Sail University, a private, for-profit university in Winter Park, Florida, boasts
a varsity-level esports team, Armada, and is opening the largest esports arena on a
U.S. college campus. The arena is set to open in May 2019, and will support the
collegiate team and, potentially, professional events. The arena is named The
Fortress, and in addition, Full Sail is building a practice facility for Armada on
campus, according to an article in SportTechie.
48

“The kinesthetics, science and physical training is quickly penetrating the space as
players look for every competitive advantage they can have. Physical training
enhances the reaction time and blood flow for increased brain function,” said
Rambis, the aXiomatic executive.

Fox also believes in similar training programs for his athletes. He created a fitness
plan for his team, Echo Fox, with TriFit co-founder Gina Baski. TriFit, a Santa
Monica gym, partners with corporations and companies offering fitness classes
taught by Olympic trainers, coaches and nutritionists. The class list includes indoor

46
Schultz
47
Jackie Barcal (head of nutrition, IMG Academy), discussion with the author, April 11, 2019.
48
Booton, Jen. "Orlando's Largest Campus Esports Arena Due to Open in May." SportTechie. April 22, 2019.
Accessed April 23, 2019. https://www.sporttechie.com/orlandos-largest-campus-esports-arena-opens-
may/?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiossports&stream=top.
19
cycling, yoga, boxing, swimming and circuit training; the gym says it can help
teams and individuals reach top levels of fitness, wellness and performance.

Fox and Baski, meanwhile, sought the help of a professor at the UCLA Brain
Research Institute “to put together a baseline of cognitive factors” to test. Research
does not exist on performance indicators for gamers, so teams are learning as they
go. Gamers are tested for working memory, reaction time, grip strength [an
indicator of brain activity], blood pressure, body fat and VO2 max [maximum
amount of oxygen a person can use while exercising – a key measurement for
athletes in endurance sports such as cycling]. The program also includes cardio,
strength training, meditation, yoga, nutrition and sleep.

IMG and Fox are just two examples of teams and organizations that include fitness
in esports training programs. Many explore ways their players can enhance
performance. But Fox’s notoriety and name has “been an amplifier to the
conversation.”
49

Notable names in esports

Other prominent names and even leagues from traditional sports have helped push
esports into the mainstream market. The NBA, with its Take-Two Interactive
Software, launched a professional gaming league for the NBA 2K game. Teams
are operated by NBA franchises, with a draft and organized competition.

The NBA's Philadelphia 76ers own two esports teams – Team Dignitas and Team
Apex – which in 2016 merged the two teams together, creating a larger Team
Dignitas.

"We intend to build a fan-first team that aspires for excellence in all aspects of the
business from attracting premier playing talent to building out merchandising,
sponsorships and broadcast rights," said Greg Richardson, chairman of Team
Dignitas, according to the NBA’s website.
50

49
Tsuji, Alysha. For the Win. October 13, 2017. Accessed March 31, 2019. https://r-login.wordpress.com/remote-
login.php?action=auth&host=ftw.usatoday.com&id=58289342&back=https://ftw.usatoday.com/2017/10/rick-fox-
esports-echo-fox-brandini-changing-culture-fitness-workout-stigma-video-games-real-sport&h=.
50
"Sixers Acquire, Merge, and Manage Esports Teams Dignitas, Apex." Philadelphia 76ers. September 26, 2016.
Accessed March 31, 2019. https://www.nba.com/sixers/news/sixers-acquire-merge-and-manage-esports-teams-
dignitas-apex.
20
In co-founding his own esports organization, Rise Nation, Saffold, the Titans’
offensive lineman, partnered with his friend Kareem Horsley and, as well, a former
gamer, Jonathan Tucker.

Saffold is one of two current professional athletes to own an organization. But
many famous former athletes are also involved in esports – Magic Johnson,
Shaquille O’Neal and Alex Rodriguez have invested.
51

Violence in esports

Despite the popularity, violence is an issue. The IOC has strongly stated that games
with “a strong reflection of violence” will not be part of the Olympic movement,
according to the SportsBusiness Journal.
52

Most esports games are violent, especially the most popular.

Still, there have been studies that show no evidence to link violence and video
games.

Whitney DeCamp, an associate professor of sociology at Western Michigan
University in Kalamazoo, examined data from the 2008 Delaware School Survey,
which questioned 6,567 eighth-graders. From this study, he found that playing
violent video games did not correlate to violent behavior.

Christopher Ferguson, associate professor in Florida and co-chairman of the
psychology department at Stetson University agrees with DeCamp. Ferguson
believes that violent video games actually help reduce societal violence instead of
trigger it.
53

"Basically, by keeping young males busy with things they like" – and this would
include everything from playing sports and collecting stamps to playing first-
person shooter video games – "you keep them off the streets and out of trouble,"
said Ferguson, according to an article in CNN.

51
Saffold
52
Ashton
53
Scutti, Susan. "Do Video Games Lead to Violence?" CNN. February 22, 2018. Accessed March 31, 2019.
https://www.cnn.com/2016/07/25/health/video-games-and-violence/index.html.

21
Newer studies have not found evidence of a link between playing violent video
games and even minor aggressive acts.

But Bach has made it unequivocal: a realistic violent game won’t be featured.

“The two big categories I like to break violence down into are red blood vs. blue
blood,” said Rambis. “Because almost every video game is violent in some
capacity. There’s even guns in League of Legends, which is considered one of the
most non-violent major esport games. Blue-blood games would be like League of
Legends or Overwatch, because it is cartoony and fantasy, and red-blood games
would be like Counter-Strike, with realistic violence. Then there are games like
Rocket League, Hearthstone or FIFA with pretty much no violence, but those blue-
blood games pale in comparison of viewership to the main esports, which have
some sort of violence.”

Observers note that guns and shooting already exist in the Olympics. Shooting,
which includes pistol, rifle and skeet-shooting, is its own sport in the Summer
Olympics; biathlon, which combines cross-country skiing and marksmanship, is in
the Winter Olympics.

How, critics ask, is watching shooting in a video game worse than watching people
shoot guns in real life?

Esports game selection process

Choosing a game would also be difficult.

“Well, I think League [of Legends],” said Markazi. “For example, they have
different professional league championships that are played in North America,
Europe, Korea, Japan. I think League, probably more than just about any other
game, has shown its popularity – and the fact that people play it around the
world.”
54

There are a few other games that might also be taken into consideration: League of
Legions, Counter-Strike, Fortnite, Apex-Legions, FIFA, Dota-2 and Overwatch.

54
Markazi
22
The 2018 Asian Games in Jakarta, Indonesia, featured esports as a demonstration –
rather than a medal – sport. Six games made it onto that program. Their selection
was based on “stringent criteria,” according to a statement that May, Asian Esports
Federation president Kenneth Fok explained in an article in Bloomberg
55
: “The
game must adhere to our vision of promoting integrity, ethics, and fair play.”

Unlike traditional sports, the intellectual property rights of an esports game is
owned by a for-profit company. This means game makers and owners would
almost surely benefit from having their game played in the Olympics. This raises a
new and perplexing series of issues.

The brand – are they paying the IOC? But then is that taking away from selecting
the best esport and making it more about who is going to be the highest bidder?

Most of the leagues – the official leagues – are operated by publishers and game-
makers. Game makers are determined to keep control of their business.

“With League [of Legends], for example,” said Markazi, “that is the intellectual
property rights of a particular company. So you would have to work with them –
it’s not football or soccer where you can just play it. League of Legends is a game
that’s developed by and created by Riot Games. If for example, they chose that
game, all of a sudden you are talking about playing a game and broadcasting a
game that is the intellectual property of someone else or some other company.”
56

Karol Severin, co-founder of MIDia Research, an analysis and research company
that focuses on the intersection of media and technology, believes in choosing
genres – shooting, strategy, virtual basketball – instead of specific games, and
having different publishers in each category compete for a spot. Or an Olympic-
specific version of the game could be created where the royalties are shared with
all developers.
57

“I think the bigger problem for them is logistically – how do you integrate the
existing world of esports into the Olympics because they are just so different? The
IOC would never sign a licensing agreement with Activision Blizzard that would
give Activision Blizzard control of the terms over the Olympic competition in

55
Nakamura, Yuji. "Sport or Sellout? Debate Rages Over Medals for Video Games." Bloomberg.com. August 19,
2018. Accessed April 1, 2019. https://www.bloomberg.com/news/articles/2018-08-19/sport-or-sellout-debate-rages-
over-gold-medals-for-video-games.
56
Markazi
57
Nakamura
23
Overwatch. And of course, Activision Blizzard would never agree to have a major
Overwatch tournament and to license their name without having control over it. In
general, that’s the real challenge,” said Fischer.
58

Esports steps toward inclusion

Those six demonstration events at the 2018 Asian Games in Indonesia? Just a first
step. At the 2022 Asian Games in Huangzhou, China, esports will be a medal
event, according to an article in The Guardian.
59

Esports in the Asian Games is an important step toward Olympic Games inclusion.
The Asian Games are the world’s second-largest multisport event; only the
Olympics is bigger. The 2022 Games will illuminate which esports titles are best
played with traditional sports, and how they’re presented.

“The Asian Games is fine, it’s a good step. but the Asian Games are the equivalent
of the Pan-Am [Pan-American] Games that are extremely obscure, involve
Olympic sports, but are really not that important to anyone in that world. There are
a lot of sports at that level that never get promoted to the Olympic level – like
water skiing. So I think there is an inclination among people to think that that it is a
first step toward the Olympics, and it could be … but there is certainly no
guarantee of that,” said Fischer.
60

IESF is said to be “deep in talks” with organizers of the 2024 Paris Summer
Olympics about incorporating the discipline as a demonstration sport at the Games,
said the federation’s acting secretary general, Leopold Chung, according to
Reuters.
61

"It won't be possible to be an official discipline," said Chung.

But appearing at an Olympics would be a big step for esports, and “Paris was the
perfect platform. There are great engagement numbers, great fan numbers who live

58
Fischer
59
Graham, Bryan Armen. "Esports to Be a Medal Event at 2022 Asian Games." The Guardian. April 18, 2017.
Accessed April 01, 2019. https://www.theguardian.com/sport/2017/apr/18/esports-to-be-medal-sport-at-2022-asian-
games.
60
Fischer
61
Tarrant, Jack. "Esports in Talks with Paris 2024 over Demonstration Event." Reuters. April 25, 2018. Accessed
April 1, 2019. https://www.reuters.com/article/us-olympics-2024-esports/esports-in-talks-with-paris-2024-over-
demonstration-event-idUSKBN1HW10W.
24
in France and especially in Paris, who would definitely want to come to an esports
game. Paris would one day like to become an esports hub for Europe,” said Chung.

Intel’s involvement and activations are allowing esports to be showcased on an
Olympic stage.

“Putting Intel in the middle of it all solves a lot of problems for the Olympics. It’s
a way for the Olympics to have a front-row seat and ask Intel people and ask ESL
people who are organizing the tournament questions, and in many ways it can be
packaged as an extension of the Olympics. Every Olympics has what they call the
‘cultural Olympiad’, where host cities promote their unique culture while the
games are going on, to make it a festival that transcends sports. It’s like a
celebration of the country,” said Fischer.
62

Japan did not create the first video game, but Japan leads the world in creating
gaming content. The gaming industry was led by Tokyo for decades, with the
invention of Super Mario, Sonic the Hedgehog and the Game Boy consoles,
according to an article in CNN.
63

“I know Intel is wanting to do a bigger and better activation in Tokyo during or
just before the Olympics to make it look like it’s part of the Olympics without
broaching all the complicated challenges,” said Fischer.
64

LA as an esports hub

In the United States, Los Angeles is perhaps the largest esports hub.

Riot Games, Blizzard and Activision all have their central offices in L.A. – these
companies publish game titles that include League of Legends and Overwatch.
Major League Gaming – a major tournament organizer – is in L.A. Team Liquid,
Immortals and Counter Logic Gaming train in L.A. – these are dominant teams in
the esports space, according to an article in Tech Crunch.
65

62
Fischer
63
Prisco, Jacopo. "How Japan Changed Video Games Forever." CNN. November 13, 2017. Accessed April 23,
2019. https://www.cnn.com/2017/11/12/asia/future-japan-videogame-landmarks/index.html.
64
Fischer
65
Hamilton, Minard. "LA Offers a Fertile Playing Field for Esports Investments." TechCrunch. June 13, 2017.
Accessed April 2, 2019. https://techcrunch.com/2017/06/13/in-la-some-investors-wish-they-all-could-live-in-an-
esports-world/.
25
“I think it would be great when you just look at how this [L.A.] is the hub of
esports from the Overwatch League to League of Legends to all the other esports
that have made Los Angeles their home,” said Markazi. “I think it would be the
perfect place for that … just because of all the games that have been created here,
developed here and produced here – it would be fantastic.”
66

“With it being the hub and with millions within this young demographic, the
general forward thinking of this city would highly align,” said Rambis.

LA 2028 Chairman Casey Wasserman, founder/CEO of Wasserman sports agency,
believes in a tech-driven Olympics. He hopes to incorporate emerging technologies
and esports from Los Angeles into the program.

"We view esports' immense global popularity and continued advances in digital
technologies as tremendous tools for reconnecting millennials with the Olympic
movement,” said Wasserman, according to an ESPN.com article.
67

Olympic inclusion for esports might come as soon as the 2028 Los Angeles
Summer Games – if not sooner.

66
Markazi
67
Allen, Eric Van. "LA 2024 Interested in Esports Technology for Olympics." ESPN. November 01, 2016.
Accessed April 19, 2019. http://www.espn.com/esports/story/_/id/17946360/olympics-la-2024-interested-esports-
technology-olympics.

26
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30

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Abstract (if available)

Abstract This thesis examines the future of esports in the Olympics. It discusses the Forum that occurred in July of 2018 to discuss a potential collaboration between esports and the Olympics. It looks at the potential challenges to adding esports to the program—such as the lack of a federation, the element of violence in games and determining how many as well as which games would be included. It comments on teams and how they are incorporating training similar to mainstream sports in order to prepare for competition. It investigates the rapid rate of growth and popularity in esports—in media rights, sponsorship and audience. It also analyzes the incorporation of esports in the Asian Games and the possibility of esports as a demonstration sport at the 2024 Paris Olympics.

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Asset Metadata

Creator Chrysikopoulos, Chloe G. (author)

Core Title The future of esports in the Olympics

School Annenberg School for Communication

Degree Master of Arts

Degree Program Specialized Journalism

Publication Date 07/26/2019

Defense Date 07/24/2019

Publisher University of Southern California (original), University of Southern California. Libraries (digital)

Tag Activision Blizzard,call of duty,esports,IOC,League of Legends,Los Angeles,media,Money,OAI-PMH Harvest,Olympics,Sports,Violence

Format application/pdf (imt)

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor Abrahamson, Alan (committee chair), Chadha, Rishi (committee chair), Fellenzer, Jeff (committee member)

Creator Email chloe@ed2105.com,chrysiko@usc.edu

Permanent Link (DOI) https://doi.org/10.25549/usctheses-c89-194651

Unique identifier UC11663010

Identifier etd-Chrysikopo-7641.pdf (filename),usctheses-c89-194651 (legacy record id)

Legacy Identifier etd-Chrysikopo-7641.pdf

Dmrecord 194651

Document Type Thesis

Format application/pdf (imt)

Rights Chrysikopoulos, Chloe G.

Type texts

Source University of Southern California (contributing entity), University of Southern California Dissertations and Theses (collection)

Access Conditions The author retains rights to his/her dissertation, thesis or other graduate work according to U.S. copyright law. Electronic access is being provided by the USC Libraries in agreement with the a...

Repository Name University of Southern California Digital Library

Repository Location USC Digital Library, University of Southern California, University Park Campus MC 2810, 3434 South Grand Avenue, 2nd Floor, Los Angeles, California 90089-2810, USA