Guild Esports; David Bekham’s London-based Esports team which came into existence a few months back aims to take edge and profits from the emerging market in Online Gaming.
Moreover, Guild’s main plan is to turn towards London Stock Exchange filing an Initial Public offering investing in the LSE’s expansion.
Guild Esports aims at recruiting about 20 professional-level gamers and to secure approximately £20 million to make their payments. With the funds collated, they aim to ensure further investments for expanding the business. And, this all is expected to complete by the end of 2021.
Sources with in-depth knowledge about the plans and targets revealed that Guild Esports aims for raising a considerable amount of 50 million Pounds, and not just 20 million. Amid the global crisis and volatility in the market, this is the dropped amount which was initially targeted, i.e. 100 million pounds. Starting with the fundraising, it already raised around £5 million in the recent summers of 2020 during a round of private funding.
DB Ventures LLC
David Beckham’s venture; DB Ventures is an investment vehicle, and with this, he holds a significant stake in the team Guild Esports. Also, the spokespersons disclosed that only about 40% of the shares of the company would be available by listings.
For the emerging market in the Esports sector that is gripping its position among several folks, especially men below 35 years, IPO will be testing the investor appetites to see for their willingness of risk-bearing.
Other entities involved like Guild’s Executive Chairman Carleton Curtis and Activision Blizzard’s Former executive vocalized that the part that is going public ensures the fans to get the company’s shares.
Carleton Curtis aims at acquiring around 1 million permanently registered fans within 12 months. With this, he commented that: “We see esports as being in the same conversation and rivalling many of the traditional major sports in a matter of five years“.
Mr. Curtis also believes that only the professional gamers in the team might turn out for dominating the Esports sector, and thus Guild intents to ensuring higher investment in expanding and fostering the networks and also in the assurance of a training academy. With this goal, he expressed his concerns stating that “It’s going to take a lot of capital to get us there, but we’re confident we can be in that conversation in a matter of years“.
The Global Pandemic
Amid the global crisis ensuing to the cancellation of several Traditional sports events lead to immense growth in the number of viewers for online gaming events. Esports acquired around 500 million viewers, too, according to the surveys. With the increased engagement and attention in the Esports sector, the businesses try making the most out of the scenario by enhancing capitalization and revenue generation.
Professional gamers from the Guild team will compete in the online events of CS: GO, Fifa, Rocket League, and Fortnite.
However, the prize money is the prime and crucial source for revenue generation. Still, the Guild team hopes at seeking immense benefits with the fame and popularity of David Beckham too. He might contribute to the sponsorship deals and revenue generation with them. Guild targets a revenue generation of 5million pounds from the sponsorship deals with Mr. Bekham’s supports and 1 million pounds from the merchandise sales.
Out of the generated revenue, David Beckham and other shareholders will hold on to their shares.