UK Law and Practice Contributed by: Jamie Singer and Flora Peel, Onside Law
COVID-19 Effect on Esports COVID-19 undoubtedly accelerated the pro - fessionalism and commercialisation of esports and virtual sport in the UK, as it has across the world. People are continuing to spend more time at home, even after the passing of the pan - demic, and an increasing number have turned to esports as entertainment. For example: • There has been a marked increase in online events, viewership and active users accord - ing to Fnactic Insights: Esports Covid Report, 2020. • Excel Esports secured a ground-breaking partnership with BT (a non-endemic sponsor), including naming rights and apparel branding. Traditional Sports and Esports Traditional sports are also embracing esports and virtual sport with real purpose and seizing the opportunity to engage with their fanbase, sponsors and, potentially, a new and untapped audience. The International Olympic Commit - tee (IOC) appointed the first-ever head of virtual sport at the start of 2022. The aim is to con - tinue the growth and focus of virtual sport for the Olympic body and oversee the Olympic Virtual Series. There is definitely a much greater focus internationally on esports inclusion at traditional sports tournaments. The Olympic esports event was ready to debut this year, hosted by Saudi Arabia, which held the World Cup in Riyadh in 2024. However, the esports event has been postponed by the IOC with discussion still ongoing, citing timeline issues. In February 2023, it was announced that Savy Games Group, a Saudi Public Investment Fund- owned esports company, had agreed to invest USD264 million in the Chinese company VSPO.
This is the biggest cash investment ever in esports. Additionally, Saudi Arabia launched two venture funds in the gaming and esports sectors, worth a combined USD120million. 10. NFTs, AI and the Metaverse 10.1 Non-Fungible Tokens (NFTs) Sports properties are increasingly exploring how to use non-fungible tokens (NFTs) to generate additional revenues and engage with fans. While the relationship between these “one-of-a-kind” digital assets and sport is still in its infancy, sporting rights-holders are looking closely at this new revenue-generating opportunity, which combines public interest in elite sport with the exclusive, authentic sporting content that it cre - ates. Neymar Jr recently paid over USD1 million for two NFTs, while Andy Murray and Kevin De Bruyne have also launched their own NFT col - lections. Currently, the key applications of NFTs by sports properties include the creation of digi - tal collectibles (eg, digital trading cards featuring players or highlights) and “fan tokens” provid - ing enhanced benefits to fans (eg, the right to access promotions or exclusive content). Athletes are increasingly taking an interest in NFTs, not only for the obvious financial bene - fits, but also to interact with their fans. Fans can also benefit from holding official athlete NFTs, for example, through metaverse interactions and meet-and-greets, which make the fans part of the athlete community. However, while presenting commercial opportu - nities to rights-holders, some NFTs may relate to assets which infringe their IP rights or facilitate such infringements. For this reason, it is impor -
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