Super League Gaming Suffered a 23% Drop On Its Nasdaq DebutPosted by Esports Thursday, 28 February 2019, 0:56 in
Super League Gaming, the amateur Esports organizer, decided to become a public traded company. Yesterday, they began trading on the Nasdaq Capital Market and were received by a 23% drop hit in their stock value when the stock market closed that same day.
Through an initial public offering (IPO), Super League Gaming raised a total of $24.9M by selling 2.27M shares. The shares were sold at a starting price of $11, reaching a high of $11.55, finally dropping 22.73% in value throughout the day. The shares ended up with a closing price of $8.50.
It was certainly not the best possible start for a company that just went into public trading on Wall Street. According to a report by VentureBeat, Super League Gaming’s filing with the Securities and Exchange Commission showed losses of $14.9M in 2018 and $12.3M in 2017. There’s a saying that goes: You have to spend money, to make money, but this situation is far from ideal and the reception of Super League Gaming in the stock market can’t be considered anything close to successful.
All Hands on Deck!
Dark clouds aside, Super League Gaming is doing their job and they have secured a busy start 2019. The company recently announced a League of Legends Tournament alongside two sponsors, Best Buy and Logitech G. Being amateur tournaments their specialty, they also revealed they plan to bring several tournaments to over 50 Topgolf entertainment centers.
Even though the financial panorama has been a bleak one, to say the least, one of their leaders recently expressed their satisfaction with their growth rate and their commitment to making the company thrive. Through an interview with The Esports Observer, Super League Gaming’s Chief Commercial Officer, Matt Edelman, said:
“Super League is in an exciting growth stage, really on every level,” Edelman said. “Our user base is growing and our partnership ecosystem is growing. Brands who are interested in esports, either endemic brands or non-endemic brands, are paying more attention to what we’re doing because they see there is a unique opportunity through Super League to engage with players while they are playing. That’s just a different type of opportunity than exists at the pro level, when they get to engage with fans when they’re viewing gameplay.”
Will the Amateur Approach Work?
Super League Gaming’s approach to Esport focuses solely on the amateur player base. This includes amateur tournaments and leagues and their own 16 clubs across different US cities.
Their attempts to reach out to gamers include Minecraft competitions for children, and the more common Clash Royale, League of Legends and Fortnite tournaments. Time will tell if their growth can overcome the financial difficulties that the company has faced these past years and if the amateur approach will be eventually profitable for the company.
Why Amateur Tournaments Matter?
On our end, we can only hope that initiatives such as this one find a way to coexist alongside Pro Esports. Few gamers get to experience the adrenaline of a live event due to geographical and economic limitations, and just a talented few can ever make it into the professional scene.
These amateur events present Esports to players from an angle that’s relegated almost in its entirety to Pro Players, the thrill of participation. Through these experiences, gamers of many ages can enjoy the format and excitement that Esports has brought to gaming. The bigger Esports’ exposure gets, the better for both gamers and industry alike.