A young audience, rising sales: E-sports continues to be an attractive growth market for investors. But not only the hope of income makes this interesting - but also the opportunity to improve your own image.
In January, ESL, which developed from Cologne into one of the largest independent tournament organizers in e-sports, announced a change of ownership. From the Swedish Modern Times Group, the company, together with the matchmaking service Faceit, goes to Savvy Gaming Group. SGG is a subsidiary of the Saudi Arabian Sovereign Wealth Fund PIF.
Will the ESL become a "sportswashing" case?
Saudi Arabia is heavily criticized. According to Amnesty International, human rights are extremely limited there. Homosexuality is punishable. Dissidents, women's rights activists, journalists and even relatives of activists would be intimidated, arbitrarily arrested and convicted, dozens executed.
The participation in the ESL is not the first case in which the Saudi Arabian state invests in international sports. The Spanish Football Supercup and Formula 1 hosted there in 2021. With Newcastle United, the sovereign wealth Fund owns an English football club, the majority of whose fans welcomed the new owners.
Critics see this as "sportswashing" - that is, an attempt to polish up the image and cover up grievances through sports. Participating athletes and sponsors would also help, according to the criticism.
ESL Managing Director: Values should remain the same
ESL co-founder Ralf Reichert dismisses the concerns. "We have met the people, and we trust the people we work with," he says in an interview with the German Press Agency.
According to Faceit CEO Niccolo Maisto, SGG was chosen primarily for strategic reasons: "We do not want a partner who sees e-sports only as a golden donkey, but wants to invest in our vision in the long term.»
For the new owner, it should not be possible to use the ESL for the dissemination of his own values, says Reichert. Also because the management staff should remain the same. "It's actually in our hands not to let that happen. And if they plan to do so, we will actively oppose it," says Reichert. As a member of the Supervisory Board, he wants to personally stand up for it.
On-air talent worried about deal
Nevertheless, the announcement caused criticism in the community - not only among fans, but also among their own on-air talents. "Right now, my heart is broken," Frankie Ward, who had worked for ESL regularly as a presenter and interviewer, wrote in a blog post. "I hope that the SGG will just be a silent partner and want to take money with it instead of using the platform for propaganda, but this will only become apparent with time.»
However, the situation presented her with a difficult question. "I have to decide whether to part ways with my biggest client - and thus virtually all of Counter-Strike, since ESL produces most of my work," Ward writes. She was surprised by the announcement. Talks with the ESL, which Reichert had announced in the dpa interview, would have taken place only after that.
Already in the past, there has been strong criticism in e-sports of the support of Saudi Arabian state actors. The European League of Legends League, for example, announced the NEOM city project as a sponsoring partner in 2020. Especially after a strong protest from the various moderation team, the league pulled back.
Managing directors take their responsibility
However, whether the promises of ESL and Faceit can dispel the doubts remains to be seen. "We are responsible for what we will do. Our values will not change," promises Maisto. "And should it ever happen, in this unlikely scenario, both companies and the people in it would disappear overnight. And that's not going to happen.»
