Board of Trustees May 13, 2021 VP Operations, Andreas Bohman EXECUTIVE SUMMARY – ESports Center
As part of our long-term investment proposal process, an eSports Center should be considered as a concept for future enrollment potential and increasing student retention. High schools are building eSports teams at an impressive rate and 97% of students between the ages of 12-17 play video games 1 . The global eSports market is valued at $1.1 billion and is predicted to grow to $6.3 billion in 2027 2 . There are currently 175 colleges and universities that have varsity level eSports programs 3 . An eSports Center has desirable marketing potential, can attract new students, and enhance student engagement, which in turn may increase student retention. The investment proposes an adaptive reuse of the vacated data center building allowing for the establishment of a fully functional eSports facility. The proposal will also evaluate alternate locations if the primary location is not suitable for the stated purpose. The one-time cost of this investment is estimated to be $2 million, which would include design, renovation, and furnishing the data center with infrastructure, furniture, fixtures, and equipment. The recurring costs are estimated to be $130,000 per year covering operational costs such as payroll, maintenance, and subscription services. From a revenue perspective, a use fee could be established to fund the operations of the facility. However, this is generally thought to work against the primary goal of student engagement. Tech-fee augmentation is a likely source to offset some of the recurring costs. Food services would be included in the facility, but minimum profit is anticipated. Nonetheless, there are revenue opportunities in sponsorship, advertising, merchandise and tickets, publisher fees, and media rights if the project is implemented well. This proposal does not take into account the opportunities for a complementing curriculum or affiliating eSports program concurrent with CWU Athletics. Both of these opportunities would increase the attractiveness of the institution to a large set of high school gamers and athletes. A BS in eSports management, a major in business with a minor, or a certificate in eSports management are likely targets for academic expansion within eSports. A varsity eSports athletics program would as well open opportunities for global brand recognition.
1 https://www.ncsasports.org/college-esports-scholarships/varsity-esports 2 https://www.globenewswire.com/news-release/2021/04/22/2214832/0/en/Global-e-sports-market-size-to- showcase-24-4-CAGR-over-2020-2027.html 3 https://www.ncsasports.org/college-esports-scholarships/varsity-esports
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