Esports gives it the old college try to gain footing
Audience, big money elude video game tourneys
LOSANGELES— Duran Parsi headed to Pepperdine’s law school three years ago with a mission: By the end, he’d either practice law or commit to his fledgling esports business.
With graduation near, Parsi might need to grant himself an extension. Collegiate Star League, the esports operation run from his apartment, has essentially become the NCAA for video games.
The company organized tournaments that 30,000 college students in the U.S. and Canada participated in this school year. Sponsorship sales tripled from last school year, and enough cash remained for Parsi, 29, to live off his business.
But amateur esports trails the professional level in fervor. Parsi doesn’t know whether the college sports matches he organizes will rival the profits and appeal of college basketball and football. The company that makes the leading game “League of Legends” expects it to match the small but loud fandoms of college baseball.
“We have a lot of players, but the audience is far behind,” Parsi said.
Large audiences deliver broadcasting and advertising deals that turn March Madness and bowl games into business bonanzas. But eight livestreams this year of Big Ten esports matches drew zero revenue for the league and a combined 2.1 million viewers.
The venture started in college when University of California at San Diego roommates pointed Parsi to the tech club’s tournament for the intragalactic alien battle game “Star Craft.” Parsi, figuring an easy gold, fell to bronze and exited surprised that 60 people showed. Inspired by classmates’ skills, he arranged a team and launched it into competition against other California universities.
By the time he earned a master’s degree from George Washington University, Parsi’s little league had ballooned into a nationwide spectacle. Collegiate Star League started featuring several games in addition to “Star Craft.” Landing the perennial contract to run the technology and logistics behind Riot Games’ university competition boosted the company’s credibility.
The league introduced multiple divisions of play, separating schools by skill level, with separate champions crowned in each game for each division. Prizes escalated from mice and keyboards in 2012 to $200,000this year. Because NCAA rules don’t apply to esports, cash prizes are fair game. But prizes might be phased out as more schools offer scholarships, bringing esports in line with the norms of college athletics.
Keeping pace with player interest required Parsi to acquire sponsors and more employees. He got the capital by selling majority ownership of Collegiate Star League in 2015 to World Gaming. The division of Canadian movie theater chain Cineplex Inc. has high expectations for diversifying its revenue.