The franchising model in esports has changed significantly. Many leagues now offer permanent slots for teams, shared media and sponsorship deals, and city- or region-based identities. At the same time, costs for entry remain high. Persistence, flexibility, sustainability and fan connection are emerging as the focus. This article explores key shifts, current structures, and what lies ahead.
The Rise of Permanent League Slots
Franchising in esports now mirrors traditional sports leagues, and many fans also choose to create account on 1xBet to follow matches and participate in online casino contests related to esports events. In recent years, several major esports competitions adopted the franchise model. For example, the Overwatch League shifted to city-based teams where franchises paid large fees for spots. The logic: offer stability to teams and guarantee long-term value for investors.
In this model:
- The league grants teams permanent membership rather than seasonal qualification.
- Revenue sharing from media rights, sponsorships and merchandising becomes a core mechanism.
- Teams can build local fan bases, establish training facilities and invest in brand building.
This structure resembles traditional sports leagues. Yet esports remains global and digital first. So franchising has required adaptation.
Why Franchising Models Are Being Reassessed
Franchising in esports showed promise, but some limitations emerged. One key issue: high cost of entry coupled with limited growth in certain markets. Analysts note that this model “improves the floor of the game but severely limits the ceiling
Some specific challenges:
- Buy-in fees and fixed slots limit new team entry and reduce opportunity for fresh talent.
- Audience growth in some regions stalled, making returns on investment harder.
- Franchising can reduce excitement of open competition, where underdogs qualify through merit.
These factors are driving leagues, teams and publishers to re-think how franchising works in practice.
New Hybrid Models and Revenue Diversification
In 2025 the market shows a shift toward hybrid models combining franchise elements with open competition or partner circuits. For instance, some leagues offer partner status or guaranteed slots, while still allowing top teams to qualify through merit.
Teams themselves are growing diversified revenue streams:
- Merchandise, content creation and digital engagement are now key income sources.
- Sponsorships remain important, but brands look for fan-driven value rather than just traditional ads.
- Global reach broadcasting and digital platforms let teams monetise beyond their market region.
This evolution means more flexibility. Teams and leagues that adapt can thrive even if the traditional model shows strain.
Key Elements that Are Changing the Franchise Playbook
Where once teams paid tens of millions for entry, newer models may lower that barrier. But commitments still matter: branded activations, regional presence, fan engagement.
Fan Engagement and Branding
Teams now focus on lifestyle branding alongside competition. A strong identity, social media presence, and content output matter as much as wins on stage.
Structure of Leagues
Leagues are moving away from fully closed formats in some cases. Hybrid models, partner circuits, and tiered systems allow both stability and talent movement. For example:
- Permanent franchise spots combined with open qualification paths.
- Regional partner systems in certain games offer guaranteed events.
ROI and Financial Sustainability
Teams and leagues are emphasizing sustainable business models. Spectator growth, merchandising, digital content, and multiple titles reduce the risk of depending on one game or one format.
What the Future Looks Like – Practical Takeaways
Here are key takeaways for teams, leagues and investors:
- Build diversified revenue streams: competition alone won’t pay heavy entry.
- Engage fans globally but also consider regional identity and offline activations.
- Use a hybrid structure: permanent spots plus open access increases freshness and fairness.
- Choose games with long-term support and global reach.
- Keep costs manageable: large buy-ins without clear returns add risk.
Franchising in esports has matured. The original format served to professionalize the space and give teams stability. Now the industry is refining that model. The future lies in blended systems that combine permanence with fluidity, brand strength with competition, and multiple revenue streams with fan focus. For leagues and teams willing to evolve, the opportunity remains strong.
