The German eSports organization ESL (Electronic Sports League) has been acquired in a surprising mega-deal by the company Savvy Gaming, which is backed by the powerful Public Investment Fund from Saudi Arabia.
What kind of deal was it? As recently announced, ESL has a new owner. The Swedish Modern Times Group, which previously owned ESL, sold the company for a hefty $1.05 billion to Savvy Gaming Group (SGG) – approximately €930 million (via Kölner Stadt-Anzeiger and SportsBusinessJournal).
This is led by former Activision-Blizzard vice president Brian Ward as CEO. SGG, on the other hand, has the estimated $320 billion PIF (Public Investment Fund) behind it.
Two major eSports organizers are now under Saudi control
What else has been bought? In addition to ESL, the eSports platform FaceIT was also acquired for around €441 million. This means that Savvy Gaming and thereby indirectly the Saudis hold two strong eSports organizers.
What implications could this have? For now, operations at ESL are said to continue as usual. Ralf Reichert, the founder and co-CEO of ESL, is also reported to have ceded his remaining shares valued at around €80 million. However, he will continue to serve as Executive Chairman at ESL in the future.
The website Kotaku fears that this purchase could also be used for the controversial “sportswashing” in the future. This refers to the practice of obscuring issues in the country with lavish sporting events.
For instance, Der Spiegel reports that Saudi Arabia is notorious for systematically buying up sporting events, which is sharply criticized internationally. The mentioned example was about a desert rally.
What are your thoughts and opinions on the purchase of ESL? Let us know in the comments below this article!
More interesting information about eSports can be found here: LoL team of YouTuber HandOfBlood celebrates their first victory as beautifully as football fans
