By Erica Johnson
- Ben Simmons invested in the 4th most valuable esports team, FaZe Clan
- The FaZe Clan team is worth $240M
Philadelphia 76ers Ben Simmons fulfilled his childhood dream when he invested in the fourth most valuable esports team, FaZe Clan. The NBA star wants a piece of the global esports industry that was valued at $1.1 billion in 2019 and is expected to reach almost $1.6 Billion by 2023. He’s made a good decision because after just 10 years, the ultra popular FaZe Clan team is worth $240 million with annual revenue of $35 million, according to Forbes.
Why This Matters: Esports aren’t just team video games, they’re a valuable asset and Simmons isn’t the only Black athlete or celebrity taking notice. Heavy hitters like music mogul Jimmy Iovine, CEO of Epic Records Slyvia Rhone (a legend), New Orleans Pelicans’ Josh Hart, Sean “Diddy” Combs, and rapper Offset have all thrown their money behind esports. While esports was cool before the pandemic, the rise of people kept indoors with no other live sports to watch had accelerated its popularity.
After just 10 years, FaZe Clan team has annual revenue of $35M
Additionally, esports startups like PlayVS, founded by Delane Parnell have garnered a lot of attention and financial investment. PlayVS, the web-based app that allows high school students to create esports teams and participate in state-sanctioned competitive leagues, closed its series A $15 million round with investors like Nas and NBA All-Star Baron Davis, among others. In Minnesota, Charles McGregor turned heads when he opened the state’s first Black-owned gaming development studio and signed a deal with Microsoft’s (MSFT +1.95%) Xbox to boot.
Situational Awareness: This diversity in esports is making gaming more accessible to people of all backgrounds and different socio-economic statuses. So, you don’t have to be Ben Simmons to fulfill your dreams, you can create your own, but we’re still here for Ben carving out a piece of the esports industry for himself.
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