Simplicity Esports and Gaming Company announced that they had signed a two-year agreement to sublicense the Flamengo Esports brand to a team competing in the popular mobile game Free Fire. As part of the agreement, they will receive a minimum fixed fee of $100,000, as well as 20% of all sponsorship and advertising revenue received by the team.
Simplicity Esports is a huge brand in the esports industry and wider gaming ecosystem, they compete and stream in popular games across different genres, including Apex Legends, PUBG Mobile, Overwatch, League of Legends, and various EA Sports titles. They also own, operate, and have franchised over 30 different Esports Gaming Centers which give the public a chance to try out gaming and esports in a social setting, regardless of skill or experience.
Flamengo Esports is a major esports organisation in Brazil. They are owned by Simplicity Esports and are the official esports team of Brazilian esports team Clube de Regatas do Flamengo. Simplicity took over the management of the esports division in January 2020. The team also competes in other esports games like League of Legends. They are currently recruiting players for the new Free Fire team.
Comments from Simplicity Esports
Roman Franklin, CEO of Simplicity Esports, wrote in the press release about the agreement:
“I am happy to take another step forward in monetizing our Flamengo Esports brand. Flamengo Esports is one of the most visible esports brands in the world with an incredibly engaged fanbase. Broadening our fanbase to additional games and platforms increases the number of potential buyers for products and merchandise, such as previously announced NFTs. We look forward to continuing the growth of Flamengo Esports with additional sublicensing and sponsorship deals throughout 2021.”
They have also increased their plans for monetisation using blockchain and cryptocurrencies, Roman Franklin went on to speak about their growth model for their esports gaming centers:
“As we enter the summer months, we will be promoting memberships throughout the footprint. The memberships will give customers exclusive access to purchase limited edition esports NFTs. I see an opportunity for us to reward our members with access to unique events and items, such as NFTs as a thank you for their recurring commitment to our gaming centers. We are also in discussions with Project Token regarding other ways blockchain can make our gaming centers more secure, efficient, and beneficial to customers.”
Simplicity Esports and monetisation
Simplicity Esports is a major brand, and they are leveraging that at the moment to increase their market value and their profits. They are sublicensing their teams for immediate cash infusions and cuts of the profits, they own a franchise of Riot Games League of Legends for esports tournaments in South America, and they have begun to mint NFTs.
They also signed a 30-month long sponsorship agreement with gaming peripheral manufacturer Redragon for Flamengo Esports. With esports, and especially mobile esports growing rapidly in Brazil, they are placing themselves at the head of the pack when it comes to monetising the newly emerging esports industry.