TNL eSports Podcast 018: Morgan Stanley's Overwatch League's Revenue Estimates

TNL ESPORTS PODCAST 018:

MORGAN STANLEY'S OVERWATCH LEAGUE'S REVENUE ESTIMATES

TNL eSports Podcast 018: Morgan Stanley's Overwatch League's Revenue Estimates (Graphic: The Next Level)

TNL eSports Podcast 018: Morgan Stanley's Overwatch League's Revenue Estimates (Graphic: The Next Level)

Today's TNL was also going to include a full overview of Morgan Stanley's report however I'll be speaking with their analysts today to get additional perspective.  This podcast was recorded last week on SiriusXM Radio.


TNL Take: In this edition of The Next Level Podcast, SiriusXM's Kevin Knocke and I discuss the recently released Morgan Stanley "research" on the potential for Blizzard's Overwatch League in Year 1.

Let's say the estimates are eye-opening to say the least: ranging from ~$100M to over $700M. While that's a big variance, there are still a lot of unanswered questions about the potential for the "NFL of eSports"

  • How many teams will there be?
  • US only cities?
  • How much will the teams cost?
  • What happens to the existing Overwatch teams?
  • Can a large endeavor be launched by Fall 2017?

Outside of the many questions around the Overwatch League, the revenue estimates seem on the high side:

  • $32M - Advertising/Licensing
  • $30M - Sponsorships
  • $27M - Merchandise
  • $13M - Ticket Sales

This stat is the most peculiar one for me:

"All in all, the Overwatch League would need to average 72,000 active viewers and hit 7.7 million viewers during the playoff season to make this estimate a reality"

OK....

Hope you enjoy our chat.