(Yicai Global) Oct. 20 -- Angel investor The Arena Capital has backed electronic sports organization GK Club to the tune of nearly USD1.5 million (CNY10 million), Lanxiong Sports reported.
Shenzhen Renren Sports Co. operates GK Club, which has divisions for online games including PlayerUnknown's Battlegrounds, Paladins, and FIFA Online 3. Tencent Holdings Ltd.'s [HK:0700] popular mobile game King of Glory is the club's core.
GK Club founder Zhang Yang established the GK King of Glory team in September last year. The team participated in the city-level competition and made it into the King Pro League (KPL) spring season this year.
eSports clubs' income comes from sponsors, live broadcasts and commercial activities. KPL's alliance revenue provides GK Club with an additional income source.
The club's year-to-date revenue is several million yuan and is set to reach CNY10 million by the end of the year, Zhang said. They broke even, which is uncommon for eSports clubs. GK Club will focus on the fan economy, treating electronic gamers like stars and most importantly negotiating with sponsors, said Zhang.