The current situation of the French professional esports industry: economic models of the clubs and regulation of the leagues

Abstract

ABSTRACT Research Question Esports are drawing more and more interest from the public and are thus raising new economic stakes. This paper aims to characterize the current economic situation of the French professional esports industry (clubs’ economic models and leagues’ regulation mechanisms). The findings pave the way for further discussion regarding potential ways for leagues to regulate competition. Research Methods The methodology is based on a qualitative approach and involves nine semi-structured interviews with major stakeholders in the professional French esports ecosystem: five clubs, two leagues, and two player agents. Financial data from two further club is also analysed. Results and Findings The results identify two economic models for French esports clubs. These models are mainly based on ‘irrelevant’ revenues, and the French clubs are not profitable due to the rat race in the labor market. Club owners are oriented towards maximizing wins. The regulation mechanisms currently used in the leagues do not seem able to change the teams’ behavior. Implications : The discussion, based on the traditional literature, suggests regulation tools that could guide the behaviors of the clubs to help them to achieve better financial stability and perhaps optimize the competitive balance of the competition. However, more research is needed to define the aims of the regulation of esports leagues.