Posted in NEWS
October 31, 2020

IOC Will Not Recognize Any World Governing Body for Esports Including Tencent-Backed GEF

IOC Will Not Recognize Any World Governing Body for Esports Including Tencent-Backed GEF

A written statement from the IOC’s Esports and Gaming Liaison Group (ELG) to all summer and winter federations is stating unequivocally that they do not plan to recognize any group or organization as “the world governing body for esports,” which includes Tencent’s Global Esports Federation. In fact, according to the report by insidethegames, sports have been “warned” by the IOC not to join the GEF.

The ELG is chaired by International Cycling Union President David Lappartient.

The GEF, which was formed last year in Singapore and backed by Tencent (who was named a “global founding partner”), states that its aim is to be “the voice and authority for the worldwide esports movement.” It is one of many such organizations founded in the last two years.

Chris Chan, who is secretary of the Singapore National Olympic Council and COO of the GEF, said GEF was formed as a way to have esports included in the Olympic Games.

The race to become the world governing body of esports as whole is still being run frantically as the GEF was in some part built as a way to overshadow the South Korean upstart, International eSports Federation (IeSF). The IeSF was started in 2008 and looks to promote esports as a legitimate competitive space akin to traditional sports. 

The difference between the two organizations is that the GEF is looking to have Olympic sports become members of the GEF while the IeSF looks to promote and facilitate international competitions. However, there have been a handful of Olympic sports that have acquired membership with the GEF, including archery, canoeing, karate,and tennis.

The IeSF has not signed deals with any Olympic sports.

Published at Fri, 30 Oct 2020 19:49:56 +0000

Gfinity Cuts Annual Loss by 36% to $10M by Focusing on High-Margin Products and Services

U.K.-based esports business Gfinity has released its results for the fiscal year (FY) 2020 for the period ending on June 30. The London-based company’s total revenue for its FY 2020 were £4.49M ($5.8M USD), down 43% year-over-year from £7.87M ($10.2M) in FY 2019. According to the company’s financial report, the gross profit of £2.77M ($3.58M) was driven by a strategic focus on the delivery of higher-margin esports solutions for key partners, up 167% from £1.04M ($1.34M) in 2019.

After taxes, the company generated a loss of £7.73M ($9.99M) for FY 2020 compared to a loss of £11.99M ($15.52M) in FY 2019. Gfinity stated in its presentation to investors that it is on track to achieve the adjusted EBITDA target breakeven in 2021.

Gfinity undertook a strategic review earlier this year and recently launched a formal sales process to look for potential strategic partners. The strategic review resulted in several efforts to reduce the company’s annual cost base by more than 60%, Garry Cook (executive chairman) and Graham Wallace (CEO) stepping down and being replaced by Neville Upton (chairman) and John Clarke (CEO), and focusing on three core areas of business: its own community, building communities for others, and motorsports.

In Gfinity’s balance sheet, its decision to discontinue products and services outside its three core areas of business was mirrored in its continuing operations row. While the company’s total operational revenues declined from £7.87M ($10.2M) to £4.49M ($5.8M), its costs of sales declined at a significantly higher rate from £6.83M ($8.84M) to £1.71M ($2.21M). This resulted in Gfinity’s gross profit margin jumping from 13% to 62%.

Note: The Esports Observer used the exchange rate in effect as of Oct. 30 at a rate of £0.77293 to $1.00 for currency conversions in this article.

Published at Fri, 30 Oct 2020 19:24:55 +0000

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