There has been so much talk and interest around the new “hot” elements of sports business; from the rise of esports to niche streaming services to sports gambling it is always good to take a look back and see what was “hot” for many became what was “not” over time, as a rush to one genre, one platform, one disruptive idea turned into a success for others, and others a bubble that burst.
The parallel I like to draw is between many aspects of Mixed Martial Arts 10 years ago and what is going on in esports, especially with the frenzy of investment and mega events like the Overwatch Championship this weekend at The Barclays Center.
Some will be greatly successful, many will be wasted cash and squandered opportunity, with the best practices being netted together for future success.
I know about the MMA rush, because 10 years ago this week, our venture, the International Fight League, folded its doors and sold its remaining assets to the UFC after a two and a half year run of fun, brand building, relationships and some painful lessons learned. Oh, and as a public company, $35 million raised and eventually spent, with little ROI for investors other than some very cool swag and the opportunity to say they were in on a sports startup.
The good from the IFL , which was originally formed by entrepreneurs Kurt Otto and Gareb Shamus? Lots. It was the launch pad for a great number of young professionals who got to create a sports venture from the scratch. It also helped relaunch the careers of a number of UFC and MMA legends who went back to the UFC and to other promotions after the tent folded; including Renzo Gracie, Pat Miletich, and Bas Rutten. We also had some great firsts: first MMA deal with Topps, first live fight on broadcast TV (on FOX owned MyNetworks), first list of non-traditional brands, like Sandals Resorts and Microsoft XBOX, and first into cities which the UFC had not yet tried, creating markets for future success. There were also first-ever deals with NeuLion, then an emerging and now a well-established, digital business as well as a first entry for FOX into the MMA business, which later turned into a short lived deal with Elite XC and then the UFC, and some great first in uses of social media way before Twitter came along. The IFL seeded the market.
Most importantly were the young fighters who came along, several of whom are still competing or made names for themselves in promotions like BELLATOR and the UFC well after the IFL went under. Jay Hieron, Tim Kennedy, Roy Nelson, and Ben Rothwell were just a few who the IFL helped get started, and with those starts, helped fuel the future for other rising organizations who were able to learn and grow as MMA became more mainstream.
The mistakes, ah the mistakes. Overproduced broadcast shows, some poor arena deals, and the musses on some fighters, as well as a “team concept” that never really took hold, were some of the startup missteps.
In the end, the people…great staff, great storytellers…were the biggest asset, and many of those friendships and working relationships live on today.
But back to esports and the rush to spend and “be in.” While esports is a wider net and in many ways more established than MMA was ten years ago, there is still a great misunderstanding as to what the “it” actually is, and a great deal of the feeling of “The Emperors New Clothes” for those trying to get smart without finding out all the details. It looks shiny and new, but peek under the hood and go for a few test drives. Those buying in on the early models may get taken for a ride.
Also like MMA ten years ago, there are many shrewd and savvy folks deep into the profitable and growing venture in esports. Some team owners, and the game companies, and a few brands, know where to spend, where to take, and where to avoid. For every ProElite and IFL there was the UFC and several other smaller shows, and eventually BELLATOR, that helped build the business of MMA to a place that is a growing global training and professional sports entity. The recently repackaged and relaunched PFL is also trying to find a niche in MMA, a sport which 10 years ago had lots of spenders with big ideas, and few survivors at the end.
Was the effort in the IFL worth it? For sure. It was a great learning experience personally and professionally for sure, and taught us a great deal about how and how not to launch a startup, many of those lessons have served well in the past decade as we all keep learning.
Ten years goes awfully fast, and its great to see MMA as a business keep going. It’s also great to watch and learn about esports, and even chuckle a little at those coming who think they have the grasp of a goldmine; Be careful what you touch folks, sometimes that gold can be a little foolish.
Ad we end with a video, one which some have seen, but all should enjoy. Again, maybe another first from the IFL, a music video. Jazzy Fae where are you today?
