This article was originally published on GameSpot's sister site onGamers.com, which was dedicated to esports coverage.
With their reveal to the public on 16 January 2014, it seemed that few batted an eye when Ninjas in Pyjamas became the first clients of the newly started esports management group Clutch Entertainment. Three people make up the company, they include Andreas Gillberg, a former developer for Ladbrokes, Gustav Käll, a star from World of Warcraft and Ragnar, a 20 year marketing-guru acting as COO of one of Sweden’s biggest media companies.
Together they’ve joined forces in hopes of raising the standards for investors, teams and last but not least, players. And today they added yet another team to their clientele in the shape of the up-and-coming Team prOperty, that most famously houses the two Swedish terrans Stefan 'MorroW' Andersson and Jeffrey 'SjoW' Brusi.
Aron Larsson, one of prOp's chairmen had the following to say about the deal the two business struck earlier in the week:
- We have chosen to sign with Clutch Entertainment as we believe they know how to take eSports to the next level. From a business standpoint, Clutch will be a hugely important partner for Team Property BB2, says Aron Larsson, Chairman of Team Property BB2 .
(Andreas Gillberg, Ragnar Tingström, Gustav Käll)
This made Ragnar more than interested to continue trying to learn the market, and with the help of Gustav he started investigating the entire industry a lot more, and eventually reached the conclusion that there wasn’t a single established company that worked actively for developing the player’s business-endeavors, and there also wasn’t a company who worked actively with other stakeholders within the scene, companies and brands that are trying to reach the esports demographic through promotional means. What we want to be able to do with Clutch is to be able to reach out to already established partners in the scene and make sure that they, as well as the teams and players receive the compensation they should be receiving, but our job will also be to interest outside companies in to this world as well and reach that crucial demographic of young adults between the age of 18-25.
It kind of makes for an “Odd Couple” like scenario with all of us being from rather different worlds, I work mostly on the strict business aspect of the project, Gustav knows esports as well as pitching the ideas we come up with with the teams, and Ragnar has a gigantic network of people, media houses and companies we can pitch said ideas to. So to sum it up, I think you could say that the seed of Clutch is wanting to create a link between the general public and esports and truly tap in to all of the untapped potential the entire scene hasn’t experienced yet.
If we’d make a pitch to a potential sponsor who’s never been involved in esports, do we talk about esports as a whole? Viewers on Twitch? These kind of numbers might seem like firm metrics, but how many people actually watch CS:GO daily? Quantifying the value is a very difficult thing to actually do, and you’ve got to be extremely upfront with all the available facts for any potential investor.
What is interesting however is that so many of these players really do have these colossal followings, and are obviously marketable in and of themselves. This, in my honest opinion, is sad as they currently aren’t getting what they’re due in terms of monetary compensation. Progamers are grossly underpaid which, in my personal opinion, has given us at Clutch a firm spot in this industry as we feel as if we truly can help contribute on that front, and hopefully, help become a driving force for the entire industry.
That is not to say that we too aren’t looking to put food on our own tables, but if we end up making a terrific job and a lasting impression on our clients and their way to do business, more people like us will step in to the field as well and make sure that the entire standard of the industry rises above its current level.
I think this is actually a very relatable topic to the world of poker. I was the marketing director for Ladbrokes.com in the Nordics and saw the poker boom come and go, and the stars of the tournaments simply faded in to obscurity when the game itself went out of style. I see a similarity in the esports giants, but it’s almost reversed as the trend of video gaming is going the opposite route. It’s growing faster than anyone could imagine and yet these stars don’t enjoy careers that extend beyond five years because no-one like Clutch or a similar agency were there to appeal to their sponsors.
After having seen that, I feel like the pitfalls in current-day esports, and our work itself, can be easily avoided if there are people like us there to guide them. Today the players can’t quantify their actual worth, even if they’re told “you are worth a million dollars”, how can they honestly know? Is it lower? Is it even higher due to the global reach of the game they play? I can bet you that the Swedish skiing team currently cost a lot more to sponsor than any of the elite teams in esports, even though their reach is minimal in comparison to teams like Na’Vi, Alliance, EG and NiP. We need to bridge this gap.
Then when WoW came along, my old team finished second place in the, at the time, prestigious R60 league which was a domestic tournament here in Sweden. After that, World of Warcraft came out and I got in to contact with Kungen and we put all our bright minds together and formed Nihilium out of the two guilds both of them represented. Naturally, friends and family felt pretty unanimously that I was throwing away the best years of my life and that I should go out in to the real world. So I quit my job and applied for the best university in my area and was set on becoming an engineer. I quickly however realized that commuting x hours a day made it pretty impossible, on top of me still playing WoW.
So naturally I kept on playing WoW, and we made sure to focus on it more heavily now when I was back full-time, so we created nihilium.eu, which became one of the internet’s 500 biggest sites (alexa rank) with several million unique viewers a week. At the time we just thought we made the most out of it, but looking back, none of us really understood just how massive it all truly was.
Then, just before the release of the second expansion, Wrath of the Lich King, came out me and a friend decided to start a blog-portal related solely to gaming called Dingblog, where we had a number of pros from different games like Loda from Dota, and of course a ton of Nihilium players who wrote actively on the site.
So then WotLK drops, we see we get a massive amount of hits and me and my friend just thought “let’s make this a business”. So we just called Swedish companies and said that we had a lot of traffic. That was enough back in those days so they threw up some ads on the site and we were suddenly actually making some money off of it. On the side of this, I decided to actually create another company related solely to selling advertisements, and that in turn got me to Stockholm and where I am today.
Amidst this entire banana-peel story, I realized then that my passion is esports. Nothing will ever change that, but my talent is selling and pitching to advertisers and clients as it lead to Dingblog being absorbed by Nyheter 24-gruppen and me being employed there as key account manager, so that I’ve managed to combine my biggest passion with my best talent is a complete coincidence and I have no idea how I actually ended up here.
With my experience as a seller of ad space I can tell you now that Twitch has greater reach than any of the current Swedish TV channels in the target group of males 15-34, on top of that they charge you close to 2 million dollars just so that they will run your ad, you need to sign an entire year’s contract with them as well. Buying ads on twitch is soon a more lucrative idea, and this puts esports on the absolute centerfold in terms of potential revenue and exposure, which is desperately needed and something Andreas and Ragnar can truly help rectify given their long careers in marketing and management, and I can contribute with my experiences I gained from my days as a competitor where all of us got genuinely exploited even though we commandeered one of the top 500 sites on the internet.
I don’t believe in the philosophy of having a single major player, I believe in a world where people and organisations like DreamHack, who I think are doing a fantastic job, and other actors can compete freely to find the best way of actually creating something of their own. I reacted in a similar fashion when Blizzard announced the plans for WCS, as I was still working with Nyheter24 at the time, and achieving a license to broadcast for said tournaments was exceedingly difficult, as Blizzard were very reluctant to let people outside of ESL, who handled the regular broadcasting for the season, produce WCS-related events on their own. It seems counter productive to limit what your community and actors are able to do.
Naturally, however, this won’t interfere with who we chose to work with. I will always stand on the players side of things, and if a player or a team are in a position like NiP are where they commandeer the best CS:GO team in the world, it’s our duty to make sure that advertisers pay them the amount they are due.
Photo Credit: clutch.se, movember.se, battle.net