By: Andrew Barton, Vice President, AAA-ICDR® and Lance K. Tanaka, Vice President, AAA-ICDR
Though most traditional sporting events have been decimated by an operational shutdown due to the COVID-19 pandemic, many might think that eSports are immune given the nature of online, or virtual, competition. However, businesses involved in the eSports industry feel the impact of the loss of revenue generated by live fan attendance via ticket sales and merchandise purchases, corporate sponsorships, streaming and broadcasting, social and livestream platform advertising, and other event-related income.
As of January 6, 2020, the online Influencer Marketing Hub approximates that eSports will become a $1.65 billion industry by 2021. Loss of revenue for a burgeoning, growth industry can have a lasting impact on both its short- and long-term viability as it often leads to an increase in business and legal disputes. It is in the interest of all businesses involved in the contracts and deals to shorten as well as mitigate the severity of any conflicts.
Benefits of Mediating eSports Business Dispute
Given the uncertainty of Covid-19, the need to quickly renegotiate contracts, resolve differences, and/or to craft unique resolutions to potential set-backs is just as necessary as it is to the traditional sports industry.
Mediation is an interactive, interest-based resolution process that enables parties to have direct input into shaping mutually beneficial outcomes. For a promising, cutting-edge industry such as eSports, it is especially important to utilize a quick and less confrontational dispute resolution procedure that will allow it to preserve its relationships and investment dollars.
The content of this webpage is not offered as legal advice or legal opinion and it should not be relied upon for any specific situation. This webpage is for informational purposes only. While the AAA-ICDR endeavors to keep the information updated and correct, AAA-ICDR makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, or reliability of the information contained on this webpage. AAA-ICDR is not responsible for any inaccuracies, errors or omissions, or for the results obtained from the use of this webpage or the content herein.