2024-11-10 10:03:00
The Paris Défense Arena is almost full on this Saturday, November 9. Nearly 28,000 people, the vast majority of them men, came to support Karmine Corp, one of the most popular French e-sport teams, during the fourth edition of “KCX” – the annual meeting. fans and teams. To the right of the huge stage designed to welcome the players, several dozen ultras from the “blue wall” (the color of the team) electrify the atmosphere, with flags, chants of supporters and tifos. “I already came last year and the atmosphere was great,” explains Jules, an 18-year-old student. “The atmosphere is always crazy,” adds Flavio, a 25-year-old accountant and regular at these events. “It’s a unique e-sport club, the only one whose supporters love the jersey.”
For the KCX-4, the K-corp faces Koï, a Spanish team, on three video games: “Rocket league”, “Valorant” and “League of Legends”, the rolls of video games with its 150 million players across the world (including 1.5 in France), according to a France Esports-Médiamétrie survey published in 2023. All the events are broadcast on the giant screen in the room, with musical interludes between the events. The atmosphere goes up a notch when Kamel Kebir, one of the two founders of “KCorp”, appears, wearing glasses and a black suit. Welcomed like a rockstar, the young player and entrepreneur addresses hearts with his fingers to a won over crowd.
“Eight years ago it seemed unthinkable”
Until recently, the image of e-sports was still associated with spotty teenagers playing alone in their bedrooms. Since the launch of Karmine Corp in 2020, “gamers” are no longer hiding. From now on, they fill the biggest halls in Europe and display their jerseys loud and clear, like football fans.
“There is a gap between the growing popularity of e-sport and the image that people have of it. We sometimes have more emotions and more ‘Marseillaise’ thrown at the KCX than during major sporting events,” explains François Gandolfi, co-founder of the communications agency Sevenspecializing in sports and e-sport. For several years, this entrepreneur has been supporting brands wishing to invest in the field of e-sport. CIC, Michelin, and even Aldi have already associated their names with Karmine Corp.
Former head of sponsorship at Paris La Défense Arena, François Gandolfi is one of those who has seen the world of e-sport change in dimension in recent years. “At the time, I was very surprised to be contacted by the organizers of e-sport events, who explained to us that they could fill the room with gaming competitions. Eight years ago this seemed unthinkable,” admits the leader.
It is clear that the status of e-sport has changed. The growth of the sector in France bears witness to this: between 2019 and 2022, the sector’s turnover tripled to reach 122 million euros, according to the report from the E-sport Economic Observatory published in March 2024. It even doubled over the last year studied.
“We explain this increase by two factors,” explains Arthur Rondault, economic study manager at the Center for Sports Law and Economics. On the one hand, the growing popularity of e-sport, which was made possible by the arrival of free streaming platforms like Twitch And on the other hand, the revenue generated by sponsorship which has allowed the sector to structure itself.
Karmine Corp, sector locomotive
With three major teams, Team Vitality, Karmine Corp and Gentle Mates, and around fifteen professional teams, France is still a small thumb in the sector compared to the Asian giants. In recent years, Karmine Corp is undoubtedly the one that has made the most noise. “It’s a fairly significant club because it creates vocations in other structures,” believes François Gandolfi.
The KCorp first purchased a “slot” (a paid place) to compete in the LEC, the equivalent of the Champions League for the game “League of Legends”. Cost of the operation? Around 25 million euros. The team created by Kamel Kebir, known as “Kameto”, and Amine Mekri, known as “Prime”, has also invested in its own 3,000-seat stadium with the Arènes d’Évry, near Paris. No professional esports team has ever moved into such a large venue. “We said to ourselves that if we were able to bring together 29,000 people once, wouldn’t we be able to bring together thousands of people several times? Financially, it wasn’t feasible if we didn’t “didn’t have a dedicated place,” says Arthur Perticoz, CEO of Karmine Corp.
Arriving in the team in 2022, the young entrepreneur, who notably launched the Majelan podcast platform, symbolizes the professionalization of the team. On the one hand, the two founders keep the local DNA that makes KCorp successful, particularly through their lives on Twitch, on the other, the company is developing. The company posted a turnover of 7 million in 2023, after 4 million in 2022, and is targeting the 10 million mark for 2024. “What has changed is that we are now a company,” explains Arthur Perticoz. There are employees, structure, internal rules of the game, a better response to sponsors. This restructuring allows the company to have control of its expenses and its earnings.
Diversify sources of income
To develop, e-sports teams face a major obstacle: they do not have rebroadcast rights to sports competitions, which are mainly broadcast on free streaming platforms, such as Twitch. “Historically, the sources of income were sponsorship contracts and fundraising,” explains Arthur Rondault. “Teams buy slots in competitions, which costs millions of euros. And it’s impossible to do without contracts significant sponsorships, except that today, not only are they no longer as easy to obtain as before, but the size of fundraising is no longer increasing.”
To continue its development, Karmine Corp had no choice but to diversify its sources of income. “Our main source of income is ticketing (70%), then sponsorship and finally merchandising (15% each), with the sale of jerseys and other derivative products,” reveals Arthur Perticoz. Hence the investment in the Evry arenas and the regular organization of major galas such as the KCX. But they are not without risks either. “Our goal is really to be in balance, and that’s not an easy task. We have technical production, but in addition we broadcast live. We have the problems of live television, those related to sport with the locker rooms, not to mention the 400 hotel nights that we pay to our teams and their opponents,” explains the manager.
The economic model of e-sport in France is therefore not yet optimal. “Being a professional e-sportsman has been a profession for 15 years in Asia. In France, it still takes time, if only to train the talents,” warns Arthur Perticoz. In recent years, the government seems to be interested in these structures and what they can bring to the national economy.
In October 2023, e-sport has obtained the alignment of its VAT on other cultural and sporting events (5.5%). “The public authorities are invested, but it is a sector which still needs to develop, in particular by working in good harmony with game publishers,” recalls Arthur Rondault. A sign of growing popularity, France Télévisions broadcast the entirety of of La Banque Postale Coupe de France of “League of Legends”. For Arthur Perticoz, there is no longer any doubt: “We have become a social phenomenon”.
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Financially viable,” Perticoz emphasizes. “We are continuously exploring new revenue streams to ensure sustainable growth.”
Karmine Corp’s innovative approach exemplifies how e-sport organizations are evolving in a competitive landscape. The investment in a dedicated venue not only serves as a stage for their events but also as a branding tool that enhances fan engagement and strengthens their community ties. The ability to host high-profile competitions and attract large audiences in a physical location can create unique experiences for fans and foster loyalty toward the brand.
Moreover, the rise of platforms like Twitch has fundamentally transformed the way e-sport events are consumed. With millions of viewers tuning in, the visibility and engagement potential for sponsors becomes significant. Karmine Corp has managed to harness this digital engagement, effectively translating their online popularity into offline success.
The changing dynamics in sponsorship suggest a more saturated market where brands need to carefully evaluate their investments in the e-sport space. Companies like Karmine Corp need not only to maintain their current sponsorship deals but also to explore partnerships that align with their growing ambitions. As the sector continues expanding, building relationships with diverse brands will be crucial for funding and sustaining their operations.
While Karmine Corp is carving a niche, the broader French e-sport scene is also catching up. As more organizations emerge and existing ones scale up, the landscape is poised to become increasingly competitive. For brands contemplating entry into this arena, the example set by Karmine Corp – combining strong community engagement, innovative revenue strategies, and a robust brand presence – serves as a blueprint for success in e-sport investments.
As this vibrant sector continues to evolve, it presents both opportunities and challenges. Stakeholders will need to stay agile, adapting strategies to meet changing consumer preferences while leveraging the latest tools and technologies in the digital landscape.
