{"id":622384,"date":"2023-03-26T23:01:00","date_gmt":"2023-03-27T04:01:00","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/26\/how-gaming-organization-otk-strikes-a-balance-between-creator-ownership-and-more-traditional-executive-experience\/"},"modified":"2023-03-26T23:01:00","modified_gmt":"2023-03-27T04:01:00","slug":"how-gaming-organization-otk-strikes-a-balance-between-creator-ownership-and-more-traditional-executive-experience","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/26\/how-gaming-organization-otk-strikes-a-balance-between-creator-ownership-and-more-traditional-executive-experience\/","title":{"rendered":"How gaming organization OTK strikes a balance between creator-ownership and more traditional executive experience"},"content":{"rendered":"
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March 27, 2023\u00a0\u00a0\u2022\u00a0\u00a08 min read<\/span> \u00a0\u2022\u00a0 By Alexander Lee<\/a><\/p>\n<\/div>\n

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The boardroom power wielded by esports organizations\u2019 creator\u2013executives has come under increasing scrutiny<\/a> over the past year \u2014\u00a0but many of these organizations would never have attained their sky-high valuations<\/a> if not for the hype generated by their creator\u2013owners. Gaming organization One True King is looking to thread the needle between these two poles by balancing its creator leadership with a suite of executives that cut their teeth in more traditional roles.<\/p>\n

Since its formation in October 2020, creator ownership has been a core part of One True King\u2019s DNA. The group is constantly adding new talent to its list of creator\u2013owners, fueling a rapid rise and accolades such as \u201cBest Content Organization\u201d at last year\u2019s Streamer Awards<\/a>. The organization signed a brand partnership with Razer in June 2022 and boasts a total social media following of 1.7 million, according to the data platform GEEIQ.\u00a0<\/p>\n

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To learn more about One True King\u2019s mix of creator\u2013leadership and more traditional business experience, Digiday reached out to OTK Chief Strategy Officer Zachary Diaz, <\/strong>vp of sales and partnerships Willis Wiggin<\/strong> and COO and creator\u2013owner Tips Out<\/strong> for an annotated Q&A.<\/p>\n

This conversation has been edited and condensed for length and clarity.<\/em><\/p>\n

On describing OTK as a \u2018gaming organization<\/strong>\u2018 instead of an esports organization<\/strong><\/h2>\n
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Tips Out:\u00a0<\/strong><\/p>\n

The biggest reason why is, fundamentally, that we don\u2019t field any competitive teams. If we were to describe ourselves most accurately, it would be that we\u2019re a media company. Our job is to put on the best content we possibly can for our gaming-endemic and gaming-adjacent audiences. We are not an esports team, in the same way that Warner Brothers or Universal or NBC or any of these media companies aren\u2019t sports teams.\u00a0<\/p>\n

In our space, it\u2019s a little strange, because a lot of the original organizations were \u201cesports orgs.\u201d So there\u2019s definitely a lot of conflating, especially when you\u2019re talking to people that aren\u2019t quite as dialed in. Ultimately, we don\u2019t field any esports teams and we don\u2019t really have plans to go down that avenue in the near future.<\/p>\n<\/div>\n<\/div>\n

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Digiday:\u00a0<\/strong><\/p>\n

OTK did field a \u201cWorld of Warcraft\u201d team<\/a> back in the day, but the org hasn\u2019t been in the business of competitive gaming since 2021. Tips didn\u2019t say it outright, but OTK\u2019s decision to avoid esports reflects more general doubts surrounding the role of competitive gaming in the industry. Investors have lost confidence in the revenue-generating abilities of pure esports companies, pushing esports orgs to increasingly branch out into content creation and other alternative revenue streams<\/a>.<\/p>\n

To some extent, the term \u201cgaming organization\u201d is a more apt descriptor for today\u2019s leading esports orgs. But it\u2019s also just advantageous branding for OTK. Esports has always been a bit of a growth on the side of the gaming industry, and OTK has decided to latch onto the host, rather than the tumor.<\/p>\n<\/div>\n<\/div>\n

On the importance of creator buy-in for OTK\u2019s brand partnership strategy<\/strong><\/h2>\n
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Willis Wiggin:\u00a0<\/strong><\/p>\n

The beautiful thing about joining OTK as a talent, or owning OTK, is that each of the shows are typically anchored by a talent. Some people have deep-rooted interests in sports, or some in cosplay. And so if we develop an IP around them, and surround them with a show that they want to make, then they\u2019re super motivated to get it paid for.\u00a0<\/p>\n

And how do we pay for the production? Well, it\u2019s going to be brand partnerships. So what brands can we work with that make the most sense for a sports show, and how do we want to integrate it into the show in a very creative, fun way? We\u2019ve seen a lot of success with that with our talent.<\/p>\n<\/div>\n<\/div>\n

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Digiday:\u00a0<\/strong><\/p>\n

OTK\u2019s brand partnership strategy requires all of the org\u2019s creator\u2013owners to sign off on potential sponsors. The company holds weekly or biweekly all-hands meetings, in which owners can discuss prospective deals, as well as livestreamed quarterly shareholder meetings<\/a>.\u00a0<\/p>\n

This practice has obvious limits \u2014 there are only so many brands that will satisfy every owner \u2014\u00a0but it keeps OTK honest, too. The org\u2019s creators are more likely to participate in branded content if they feel they have a voice in the process.<\/p>\n<\/div>\n<\/div>\n

On the potential risks of going too corporate<\/strong><\/h2>\n
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Willis Wiggin:\u00a0<\/strong><\/p>\n

If you look at people like FaZe Rain and FaZe Teeqo \u2014 I don\u2019t know if you\u2019ve seen their cries out to the community<\/a> right now about FaZe becoming too polarized, in regards to these corporate folks taking too much control and the community losing what FaZe Clan was. At OTK, we have the advantage of starting way later in this industry, so we were able to kind of take notes and lessons from extremes that have happened in the past.\u00a0<\/p>\n

I was at FaZe; I can\u2019t speak on the record about a lot of what happened, but FaZe Rain and FaZe Teeqo were there for 12 years, and they were founders of FaZe Clan. If you give up too much control to the public, or too much control to VCs, you might be at risk of losing your identity \u2014 and that\u2019s what your fans, your viewers, ultimately care about. The people who purchase products, the people consume your content.<\/p>\n<\/div>\n<\/div>\n

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Digiday:<\/strong><\/p>\n

Wiggin worked at FaZe Clan between February 2018 and May 2022, including stints as a director of sales operations and head of brand partnerships.<\/p>\n

FaZe Clan\u2019s decision to undergo a $725 million SPAC merger<\/a> in July 2022 is now widely considered to be a blunder by industry observers. In January, the company flirted with a possible Nasdaq delisting<\/a> in January as its share price fell below $1.\u00a0<\/p>\n

Investors\u2019 lack of confidence in FaZe has been at least partially driven from inside. FaZe\u2019s aforementioned creator\u2013founders have vocally spoken out against the current management of the company, claiming a lack of control over the org\u2019s current direction. The FaZe situation shows how organizations that decouple themselves entirely from their creator\u2013owners risk turning those creators \u2014\u00a0and their fans \u2014 from assets into enemies.<\/p>\n<\/div>\n<\/div>\n

On the role of creator\u2013ownership in keeping talent engaged<\/strong><\/h2>\n
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Zachary Diaz:<\/strong><\/p>\n

I have seen that light bulb switch in so many of these creators \u2014\u00a0it\u2019s like, you could have very easily made a different decision, and it still would have been appropriate for you as an individual. But as a steward of this community, of this organization, you\u2019re trying to think of whether this is sustainable two years from now.\u00a0<\/p>\n

The creators recognize they are building long-term value, because you have creators joining the ownership. As they start to work with Willis and build an IP around them, or as they launch shows, they get really involved. It\u2019s really that we want them to carry this as part of their legacy, because we are seeing what could happen in this creator economy.<\/p>\n<\/div>\n<\/div>\n

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Digiday:\u00a0<\/strong><\/p>\n

OTK is not the first gaming or esports organization to offer equity to its members. Organizations like 100 Thieves and Team Liquid<\/a> have at times invited a select group of prominent creators on their roster to become company owners. This is a tacit acknowledgment of the fandom-generating power of individual creators in gaming; the orgs know they\u2019ll be screwed if their top creators leave, so they offer them equity to keep them around.\u00a0<\/p>\n

At OTK, this strategy was baked in from the beginning; every creator on the org\u2019s roster automatically gets equity. As shown by Diaz\u2019s observations above, this has made OTK talent care more about the long-term future of the company, rather than viewing it as a way to make a paycheck in the short term.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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