By Emre Bilginoglu, Attorney-at-Law, Istanbul, Turkey
London-based Guild Esports, which has former football player David Beckham on board as an investor, has declared its intention to list its shares on the London Stock Exchange.
Team Guild aims to compete in Fortnite and FIFA, amongst others. Current expectations are to raise £20m with a £50m valuation.
Esports teams make money out of sponsorship, broadcasting and competition prizes, but the current aim for all club investors is to make a name, a strong franchise that has its own supporters so that sponsorship revenues grow exponentially in the next decade and beyond.
Of course, both the issuers and the investors may invest in Esports teams to benefit from their potential growth.
Issuers look to raise some more capital to build a stronger brand name, whilst investors look for a future franchise power.
When it comes to the stock market, the business itself is quite volatile.
For example, Astralis, a Danish Esports team’s stock lost almost half of its value following its IPO (Initial Public Offering).
However, Guild Esports are expecting a good response from potential investors in their IPO, given the fact that, during the ‘lockdowns’ due to the COVID-19 Pandemic, Esports have continued to grow in popularity.