Guild Esports

Guild Esports is a UK-based team organization backed by UK soccer superstar David Beckham, fielding rosters in titles including Rocket League, Valorant, Fortnite, and FIFA. Guild Esports launched its first apparel line in collaboration with skatewear designer Fergus Purcell in November 2020. Guild Esports joined a long line of esports teams capitalizing on their brands using merchandise, including FaZe Clan and 100 Thieves, who have been extremely successful. Guild is expected to open a roughly 9,800 square-foot facility in London in Q2 2022 to facilitate training for its academy members and run its global operations. In February 2023, Guild launched an in-house production and creative agency known as Guild Studios, which offers end-to-end creative services, production, and consultation in esports marketing, to diversify its revenue streams.

Key customers and partnerships

Partnerships include that with

1) Digital advertising service Pixels AI to leverage the optimization tools provided by Pixels AI to generate advertising revenues from its proprietary video content ( July 2023 ).

2) Fanatec to open a sim-racing facility featuring eight racing simulators equipped with Fanatec products.  The facility, which will also serve as a Fanatec showroom, is expected to start generating revenue in the third quarter of 2023. Additionally, the partnership will enable Guild Esports to explore new sponsorship categories in the realm of sim racing (June 2023).

3) Secured a three-year partnership worth GBP 700,000 (~USD 870,000) with Danish sportswear brand hummel ( April 2023 ).

4) Signed a three-year sponsorship with Sky UK Ltd as its “Official Premier Partner”, which the company claimed was one of the largest esports sponsorship deals signed in Europe (September 2022).

Other major sponsorship announcements include two-year partnerships with gaming peripherals brand HyperX (January 2021) and fast food franchise Subway (March 2021). According to the terms of the deal, the HyperX brand will become Guild Esports’ peripheral partner and feature in its players’ streams and the organization’s marketing initiatives. The deal with Subway is reportedly a multi-million-pound agreement covering 55 EMEA markets. 

Funding and financials

The company became the first esports franchise to list on the London Stock Exchange (LSE) when it debuted on October 2nd, 2020. Before the IPO, the company also raised USD 26 million in funding via a share placement on September 30th, 2020 (around 40% of its shares were offered, valuing the company at USD 65 million). The funds were used for recruiting more players and for brand investments. TIn June 2023, Guild Esports raised GBP 622,200 (~USD 800,000) in funding through the share placing and subscription of over 103.7 million new ordinary shares at a price of GBP 0.006 (~USD 0.008) per share.

In FY2022, it reported that total revenue amounted to GBP 4.5 million (~USD 5.8 million), reflecting 137% YoY growth. Sponsorship revenue worth over GBP 3.2 million (~USD 4.1 million) accounted for the majority of the revenue (~70%), followed by prize money of GBP 1.3 million (~USD 1.7 million). Despite healthy gross margins (62%), the company reported a net loss of GBP 8.7 million (~USD 11.2 million), unchanged from last year. The company cited continued investments in its esports teams and the increase in administrative expenses for the losses and had implemented a cost rationalization program towards the end of the financial year.

In October 2023 , the company secured GBP 1 million (~USD 1.22 million) in funding through a subscription letter with an unnamed esports brand. Guild Esports did not disclose the investor's identity but noted that the shares will be divided into three segments, with the first two rounds amounting to GBP 250,000 (~ USD 304343.50) each. It plans to use the funding to facilitate international expansion and enter new markets, focusing on the MENA region.

In November 2023 , the company completed a follow-on fundraising round of GBP 130,000 (~USD 160,000) through a share placing and subscription. The fundraising had the participation of the executive management and financial institution Arkios.