1.5 billion US dollars with a catch: The sale of event organisers ESL and FACEIT is a blessing on the one hand, but raises moral questions on the other.
The eSports scene is seething. Since the announcement of the takeover by Savvy Gaming Group on 25 January, criticism has been hailing ESL and FACEIT. The reason: Behind the new “big player” in eSports is the Saudi Arabian state fund PIF.
The financial blessing therefore comes with a lot of ballast. Organisations like Amnesty International accuse the Saudi Arabian regime around Crown Prince Mohammed bin Salman of countless human rights violations.
These include humanitarian violations of international law in the conflict with Yemen, disregard for women’s rights, cruel punishments and religious discrimination. The international organisation Freedom House rates Saudi Arabia as “not free” with 7 out of a possible 100 points. By comparison, Germany has 93.
ESL responds to criticism
Many fans are accordingly clear in their criticism of the ESL: the company would have sold out its values and visions and thus harmed the entire eSports scene. ESL co-founder Ralf Reichert did not let this go uncommented.
On Twitter, Reichert reacted with the words: “We see the change on the ground and can help instead of watching.” Similar arguments are also made time and again by players from football, but they are rarely well received.
Fans and commentators before the jump
Some fans even called for a boycott a few days after the announcement. This is unlikely to happen on a large scale, but some prominent members of the scene have drawn their own conclusions.
British Counter-Strike commentator Vince Hill has already announced that he will no longer work with the ESL FACEIT group. Colleague Frankie Ward also expressed her concerns – but she would not have made a decision yet.
eSportswashing
The purchase of ESL and FACEIT is not the first foray into the eSports scene by the Saudi Arabian sovereign wealth fund. In 2020, the associated company NEOM entered into sponsorship deals with competitions LEC and BLAST. However, both deals were cancelled after drastic opposition from the community.
In addition, the sovereign wealth fund bought Newcastle United football club in 2021. Olympique Lyon and Inter Milan are to follow. This is sportswashing – according to Amnesty International’s accusation. The crown prince is trying to whitewash the country’s reputation with such investments.
Forced to sell?
With all this moral baggage, the question arises: Why are ESL and FACEIT selling to the Savvy Gaming Group? At the latest since the burst NEOM cooperations, the companies should be aware of the position of the fan community.
The reason, as so often, is money. 1.5 billion US dollars is a large sum, especially since the state fund has access to considerably more financial resources. ESL CEO Craig Levine also argues in this direction in a press release on the takeover. He promises “more know-how, skills and resources than ever before”.
This money is urgently needed, because tournament organisers have been fighting the red for years. Major events in arenas with prize money in the millions and high broadcast quality can hardly be financed in a world of free streams without the sale of broadcast rights.
Not a new development
Also somewhat lost in the discussion is the fact that money from questionable sources has been flowing into the coffers of eSports companies for many years. The Saudi Arabian state fund owns shares in numerous video game manufacturers.
Tencent also dominates large parts of the eSports market. The mega-corporation has close ties to the Chinese government, which is also being closely watched for various human rights violations. The money, which is fraught with doubts, is therefore not new, but the aversion to it seems to be increasing.