Best Practices for Organizational Management Towards the Healthy Development of eSports

Esports is a relatively new form of competition and is not yet widely recognized as a sport by everyone.
In this article, we will explore the challenges of organizational management in the esports field and consider specific approaches to address these issues.

Challenges and Responses in the Japanese eSports Industry

At least within Japan, we cannot ignore the negative image associated with gaming, such as the decline in physical and academic abilities due to addiction.
For the promotion and development of eSports, continuous efforts by players and organizations to raise awareness and improve the image of the sport are essential.
Simultaneously, it is crucial to exercise utmost caution to prevent scandals related to eSports from undermining trust in the competitions.

Additionally, when organizing eSports tournaments with prize money, various regulations under Japanese laws such as the Act against Unjustifiable Premiums and Misleading Representations become issues. (See: Prize Money in eSports Tournaments and the Act against Unjustifiable Premiums and Misleading Representations)
If inappropriate tournament management leads to allegations of legal violations, the continuation of the tournament itself may become difficult, and the resulting disadvantages for players, spectators, sponsors, and other stakeholders who have invested time and effort in the tournament are immeasurable.

Moreover, many eSports tournaments are held online, presenting unique challenges distinct from traditional sports, such as ensuring fair communication environments and preventing fraudulent activities.
In particular, preventing cheating and ensuring network security are crucial elements in maintaining the fairness and reliability of the competitions.

Current State of Governance in Sports Organizations

Such issues are actually prevalent in traditional sports organizations as well.
In recent years, various sports organizations have faced revelations of violence and harassment by athletes and officials, use of illegal drugs, and instances of opaque organizational management and arbitrary punitive actions. These issues have highlighted a severe lack or absence of governance, which has been pointed out as a significant social problem.

The widespread media coverage of such scandals severely undermines public trust in the sports, leading to a decline in their popularity and potentially causing a serious downturn in the sport itself.
All sports organizations must work on ensuring and strengthening governance to prevent the erosion of trust due to scandals if they aim to promote the sport and enhance the status of athletes.

The Essence of Organizational Management

Here, it is necessary to revisit the meaning of the term “governance.”
This refers to the control and management of an organization based on legal norms and internal regulations.
Organizations that operate as entities must establish a necessary framework (“governance structure”) to ensure proper organizational management in various situations such as decision-making, finances, and handling of scandals, and must conduct their operations in compliance with Japanese laws and self-imposed rules.

However, many sports organizations face difficulties in implementing adequate measures due to constraints in their size and financial resources.
Particularly in organizations with a strict hierarchical structure typical of athletic clubs, or those with a closed nature that makes reporting or consulting with external organizations difficult, responses to scandals and post-incident measures tend to be insufficient.

That said, sports organizations with limited personnel and budgets are not always expected to maintain the same level of governance as large corporations.
It is important to build and operate a governance structure that is feasible and sustainable, taking into account the size, budget, and activities of each organization, while considering the unique personalityistics of sports and the organization.

Regarding the governance of sports organizations in general, the “Governance Guidebook” by the Japan Sports Arbitration Agency and the “Governance Code” by the Japan Sports Agency have been created and published, providing valuable guidelines for implementing governance in e-sports organizations as well.

Practical Approaches for Advancement

To further promote and develop eSports, it is crucial for each eSports organization to operate with governance that prevents legal violations and other misconduct. Specifically, decision-making processes such as the appointment of executives and selection of representatives, as well as budget formulation and execution, and adverse actions, must be conducted transparently and in compliance with Japanese laws and regulations. To achieve this, it is essential to establish the necessary systems and ensure that players and executives are aware of the importance of governance and the rules they must follow.

Additionally, organizations that organize eSports tournaments and teams must respect the rights and interests of players and others, ensuring a safe environment for playing or spectating. In the event of any issues, it is important to seek swift and fair resolutions, utilizing external dispute resolution bodies as necessary.

Furthermore, the obligations of eSports organizations extend beyond just legal compliance. In tournament operations, it is necessary to establish and communicate fair and equitable regulations regarding the gaming environment and rules to ensure that no player or team is unduly advantaged or disadvantaged. (Reference: eSports Tournament Regulations)

Moreover, with the rapid advancement of technology, the environment surrounding eSports is constantly evolving. Therefore, each organization must regularly review its operational systems and establish a framework that can flexibly respond to new challenges and demands. In particular, accumulating know-how in online tournament operations and building governance systems utilizing digital technology are expected to become increasingly important.

On this site, we provide detailed articles on specific practical methods related to these operational systems.