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New eSports Merch Deal Points to Promo Opportunities

A merchandise partnership announced this week heralds the potential promotional swag possibilities in a booming new market.

eSports, a form of organized, multiplayer video game competitions—complete with professional teams, live streaming play and super fans packed into large sports arenas—has taken the gaming world by storm. And now, Blizzard Entertainment’s Overwatch League (OWL), a professional eSports league specifically for the video game Overwatch, is making its foray into the traditional athletics market with a new multi-year merchandise collaboration with Fanatics, an online retailer of licensed sportswear for heavy-hitters such as the NBA and NFL.

“Going forward we are going to take on some of the products already on sale, but also start designing new products, fan gear, and sub-license to other companies for headwear and in other areas,” Ross Tannenbaum, head of special projects for Fanatics, told Variety. “We’re going to be creating really cool lifestyle products and will be working with [Activision Blizzard, Blizzard Entertainment’s parent company] to design those.”

OWL’s format is similar to other professional sports leagues, with 20 teams in the Atlantic and Pacific divisions comprised of professional players and a season schedule that culminates in a playoff series and Grand Finals. Teams hail from all over the world, with a roster that includes Florida Mayhem, New York Excelsior, Philadelphia Fusion, Paris Eternal, Guangzhou Charge, Shanghai Dragons and Vancouver Titans.

This is the first eSports merch partnership for Fanatics, which will create and manage a new e-commerce website for OWL where all fan gear will be available. It will also manage on-site retail stores at OWL events.

“We’ve continued to figure out how we can find the right partner to…build the Overwatch League,” Brandon Snow, chief revenue officer for Activision Blizzard , told Variety. “One of the big areas to build the brands of these teams and service fans is with products and merchandise.”

It’s a further move into the mainstream for eSports, which has seen huge growth over the past several years and poses a potential new market for promotional products firms. According to Newzoo, a market research firm for games, eSports and mobile, industry revenue increased from $493 million in 2016 to $655 million in 2017. It could exceed $900 million by the end of this year. With the industry growing and looking to do more with merchandise, promo distributors have an opportunity to start selling into the market now. Potential clients can include streamers, particular game brands, and more.