The CEO of NRG Esports, Andy Miller, recently warned League of Legends (LoL) teams about the long-term sustainability of the industry. In an interview with The Esports Observer, Miller cautioned that current levels of investment are unsustainable and the market must make a shift in order to remain viable.
Miller spoke highly of the state of the LoL esports scene in terms of its ability to draw in sponsorships, but said that teams and organizations need to be careful in how they manage their funds. He said teams have to think in terms of long-term sustainability, rather than short-term gain.
“We have to think about business plans that work for multiple years, not just this year alone,” he said. “When teams go into a season with sponsorships and teams don’t make the [championship] playoffs, they start panicking… But that’s the wrong approach. You have to plan accordingly and understand that you can’t be successful unless you make strategic decisions.”
Miller also praised Riot Games for their overall handling of the LoL esports scene, despite the fact that NRG has invested in Overwatch and other games. He stressed, however, that teams compete with each other on a variety of levels and LoL teams need to keep their eyes open to the fact that the industry could shift in an instant if investment in other titles rises.
“I think teams that focus disproportionately in one area can be risky”, Miller said. “It requires diversification and strategic investments. It’s definitely something that needs to be continually thought about and managed.”
Miller’s warning serves as a reminder that the esports industry, while booming right now, is in a constant state of flux. While investment is increasing and sponsorships are flowing, teams must keep in mind the need to remain flexible and prepare for the unexpected.