Esports Franchising: Key Contract Clauses for 2024
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Esports 28 September 2023

Esports Franchising: Key Contract Clauses for 2024

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By David Choi

IBLM Law Group

The esports winter has thawed, but the landscape has changed. The era of inflated valuations and loose franchise agreements is over. In 2024, sustainability is the watchword, and your participation agreement needs to reflect that.

Revenue Share Transparency

Historically, publishers have been opaque about league revenues. New standard clauses are demanding third-party auditing rights for teams. If you are buying into a slot, you need a guarantee that the revenue split is based on verified net revenues, not gross figures with hidden deductions.

Force Majeure and League Cancellation

After the collapse of several high-profile leagues, 'termination for convenience' clauses by publishers are being heavily contested. We are structuring agreements that provide specific buy-back guarantees if a league ceases operations within the first 3 years.

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