The eSports industry has developed at lightning speed every year and is taking seven-league steps to its top. According to the PwC report the forecasts of the global esports market show that from 2018 to 2023 the average annual growth rate of this segment will be 18.3%, and the total market volume will be $ 1.8 billion in 2023. Asking whether esports is a phenomenon of the 21st century, the indicatorsnoted above give a definite answer “yes”. The analysis of numerous articles aboutthe establishment of eSports as well as studies of large eSports organizations prove that eSports has achieved recognition as one of the sports disciplines, since it has long-standing rules, they use the intellectual abilities of the participants, and mandatory training is provided, and that is an established fact. Any new branch of activity requires timely regulations and a proper legal support.
The key element of the regulation of legal relations between the parties involved is the contract. Contractual relations are found in almost all areas of our life. Esportsis no exception. At the stage of the ascent of esports into the global sports games industry, no one understood the importance of such legal instrument as an esportscontract.
The Ukrainian legislation does not define “an e-sports contract”, and in general, e-sports is practically not regulated in the legal framework. We should be guided by what we have, and this is the principle of freedom of contract, which is enshrined in the Civil Code of Ukraine.
Let us take a closer look at the practical necessity of esports contracts for both players and gaming holdings.
A high-quality and competently drafted eSports contract provides the parties with safe and long-term cooperation. The most important points of the contract include:
1. Parties and subject matter of the contract.
2. The term of the agreement (in e-sports, contracts are considered optimal if they are signed of 6 to12 months with the possibility of its extension).
3. Obligations of the parties (both the player and the esports organization).
4. Terms of revision of the contract.
5. Terms of prolongation and termination of the contract.
6. Payment for the player’s work (bonuses, special conditions).
Namely the finance point should be paid more attention than the other ones.
In addition to the main points, the attention should be paid to the regulation of the intellectual property of the clubs, the promotion of the player’s personal brand, the permissible scope of gaming business off the team, and also indicate the arbitration clause. Advertising and marketing should be dedicated a separate section of the agreement. In some cases, you can sign an Endorsement Contract, the key elements of which we will look at later.
An esports contract is the main instrument for regulating esports activities, so you shouldn’t neglect it.