Why Esports Didn’t Become the Next NBA — and Where It Stands Now

# Overview Esports did not become the next NBA, but it is not dead. The industry still stages major live events, attracts large audiences and offers seven-figure and higher prize pools. The pandemic accelerated attention and investment, creating inflated valuations in some cases, but that surge has recalibrated into a more uneven commercial picture.

# What worked: viewership and money

Prize money has increased as well. The Esports World Cup lists a $75 million total prize pool. That level of cash draws competitors and attention, and it explains why some teams and events remain attractive to investors.

# Why broadcasters and advertisers hesitate Media-rights deals are the main revenue engine for traditional sports. Esports has not settled into that model. Platforms like YouTube and Twitch dominate distribution, but exclusivity is weak and co-streaming by individuals is allowed. That makes rights harder to control and ad inventory harder to protect.

Measurement problems compound the issue. Much of esports viewership in markets such as China, Indonesia, India, Brazil and the MENA region happens on mobile devices. Academic esports researcher Tobias Scholz notes that these viewers are often measured differently or undercounted — "measuring the wrong screen" — which reduces the recognized audience and therefore the price advertisers will pay.

# Market size and definition uncertainty

# Investment vs. sustainability The pandemic years drove speculative investments and high-profile public listings. The FaZe Clan IPO at a $725 million valuation is an oft-cited example of that period's optimism. Since then, valuations and investor expectations have adjusted. Some capital remains, and sovereign money — especially purchases of tournament rights by Saudi Arabia's Public Investment Fund — has fueled large prize pools and big events. But those inflows do not replace a mature, repeatable media-rights market.

# What this means going forward Esports will likely remain a mixed commercial ecosystem: big events that draw millions of fans and sizable prize pools coexisting with diffuse online viewership and uneven monetization. Solving measurement across devices, clarifying which properties generate exclusive rights value, and creating stable distribution terms that prevent easy co-streaming are the commercial steps that could tighten value for rights buyers.

Audience appetite exists. The remaining work is converting attention into predictable, scalable revenue streams — and aligning stakeholders around clearer, enforceable rights and metrics.