Menu
Download the app

SBJ subscribers – Enhance your experience with the revamped iOS app

Finance

Alibaba's First World Electronic Sports Games Results In 70% Loss In Investment

The Alibaba Group "has invested heavily" in esports during the past 18 months, according to Angelos Anastasopoulos of THE ESPORTS OBSERVER. The first series of its World Electronic Sports Games cost a reported $22M but resulted in a 70% loss in investment for the Chinese firm. Alibaba "predicts these tournaments will continue operating at a loss for the next five years," but according to Alisports CEO Zhang Dazhong, "this is a financial hit the company is willing to take, in order to win long-term." Dazhong said, "We are prepared to lose money. We can accept the losses now as we hope to promote this sport. For a sport that has a lot of participation, it must have a bright future." Months after announcing its entry into the esports industry in March '16, Alibaba revealed its plans for the first WESG, which featured a $5.5M prize pool and endorsement from the Int'l e-Sports Federation. Zhang said, "We estimate that in five to 10 years the business model will be more complete. On top of the competitions, we have to bear in mind the electronics business and marketing related to esports" (THE ESPORTS OBSERVER, 12/1).

For more coverage of the business of esports, visit our partners, esportsobserver.com.

SBJ Morning Buzzcast: March 25, 2024

NFL meeting preview; MLB's opening week ad effort and remembering Peter Angelos.

Big Get Jay Wright, March Madness is upon us and ESPN locks up CFP

On this week’s pod, our Big Get is CBS Sports college basketball analyst Jay Wright. The NCAA Championship-winning coach shares his insight with SBJ’s Austin Karp on key hoops issues and why being well dressed is an important part of his success. Also on the show, Poynter Institute senior writer Tom Jones shares who he has up and who is down in sports media. Later, SBJ’s Ben Portnoy talks the latest on ESPN’s CFP extension and who CBS, TNT Sports and ESPN need to make deep runs in the men’s and women's NCAA basketball tournaments.

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Global/Issues/2017/12/05/Finance/Alibaba.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Global/Issues/2017/12/05/Finance/Alibaba.aspx

CLOSE