On October 7, 2021, the third annual conference of the Augsburg-based Research Center for Esports Law (FeSR) took place in cooperation with the Hochschule Mittweida. The annual conference of the FeSR thus formed the legal part of the Esports theme week organized at the Hochschule Mittweida. Due to the developments in practice, the research center made "Contract Design in Esports Law" the general topic of its conference. With the increasing professionalization of Esports - in the recent past, for example, in the case of FaZe Clan vs Tfue - the drafting of contracts in Esports is increasingly becoming the focus of the branch.
10.00 a.m. – 10.30 a.m.: Welcome (Coffee and Cookies)
12.15 p.m. – 1.15 p.m.: Lunch
2.45 p.m. – 3.15 p.m.: Break (Coffee/Beverages and buttered pretzels)
Afterwards: Evening Get-Together
As those familiar with the scene will immediately recognize, the FeSR was able to welcome some of the industry's most prominent practitioners as speakers at the event. Thus, with Dr. Andreas Jens (Founding Partner at BluePort Legal), Dr. Pietro Graf Fringuelli (Partner at CMS Hasche Sigle), Dr. Andreas Peschel-Mehner (Partner at SKW Schwarz Rechtsanwälte), Dr. Henning Hofmann (Head of Legal at SV Werder Bremen) and Dr. Holger Jakob, LL.M. Eur. (Senior Lawyer at MELCHERS Rechtsanwälte) once again some of the most important legal voices of the branch could be heard and seen live on site and on the internet (via Twitch and YouTube). Christian Koops (Senior Associate at Baker McKenzie) was unfortunately unable to present due to illness; his topic was covered instead by Prof. Dr. Martin Maties (Head of FeSR) and Philipp Schlotthauer (Founding Member of FeSR).
As in the previous year, only a limited number of participants could be admitted on site due to the pandemic. However, with the kind support of Baker McKenzie – cooperation partner of FeSR and main sponsor of the conference – and the Hochschule Mittweida, a large audience could once again be reached via livestream.
As the first speaker, Dr. Andreas Jens explained the design of sponsorship contracts. He highlighted their great importance in the Esports industry and as well as the challenges in drafting these contracts. He then gave important practical advice, which is based on many years of consulting experience in the area of sports and Esports law that has been prepared in a way to be applied directly. As the most important factor, he correctly emphasized in particular the need for precise regulations when drafting contracts in the sponsorship context, as contractual obligations and exclusivity are of outstanding importance in sponsorship.
Since Christian Koops was unable to speak, Prof. Dr. Martin Maties and Philipp Schlotthauer discussed compliance in Esports. They presented not only the importance of the term "employee". A wrong classification of the Esports athlete as self-employed within the underlying employment contract bears – as the speakers demonstrated across different legal fields – risks in the areas of labor law, criminal law, social security law and tax law. It was clarified that although there exist different connecting factors for labor law, social security law and tax law with regard to the personnel scope of application (§ 611a BGB, § 7 SGB IV and § 1 LStDV) as well as differences in content in some cases, the concept of employee is of elementary importance. The consequences of infractions and the relevance under criminal law were elaborated, and suggestions were given as to reducing the compliance risk for those in charge.
Dr. Pietro Graf Fringuelli and Dr. Andreas Peschel-Mehner dealt with the Pain Points of the contractual structures between league organizers and Esports teams in an exciting dialogue. Based on their background knowledge from legal consulting, they demonstrated the development of relationships between league organizers and Esports teams. In particular, they highlighted the challenges in drafting the 'Louvre Agreement' between the ESL and leading international CS:GO teams. The presentation was a great asset for any legal practitioner in the field of Esports, as it concerned an area that otherwise remains undiscussed.
Dr. Henning Hofmann presented the design of contracts in Esports from the perspective of a traditional sports club that has successfully entered Esports as one of the "big players". As essential contents to be regulated, he outlined the requirements for payment, term, and marketing. In particular – which is important for the young discipline of Esports law – he dealt with parallels and differences to conventional, analog sports. In addition, he also referred to the increasing importance of transfer contracts and offered insights into the contract design.
The series of lectures was concluded by Dr. Holger Jakob, LL.M. Eur. with insights into the relationship between Esports and gambling law. In doing so, he criticized the current gambling regulation, referring to his experiences with the Regierungspräsidium Darmstadt (responsible for the licensing of sports betting). The current practice in Darmstadt is the reason for the hesitation of betting providers in Germany and favors the development of an unregulated black market as well as the relocation of betting to foreign countries.
Immediately following the presentations, questions from the on-site audience, as well as from viewers from the live chat, contributed to an engaging discussion that revealed highly qualified audiences.
In the final panel discussion, moderated by Prof. Dr. Martin Maties, Dr. Holger Jakob LL.M. Eur., Philipp Schlotthauer, Dr. Henning Hofmann, Nepomuk Nothelfer (Research Associate at SKW Schwarz Rechtsanwälte, Founding Member of FeSR) and Patrick Petschinka (University Assistant, University of Vienna) were participating. In particular, questions from the audience and the live chat were addressed. Therefore, it was possible to discuss a wide range of topics. One of the subjects dealt with the necessity of certain legislative measures in the field of Esports, but also with the promotion of diversity in Esports.
Prof. Dr. Martin Maties ended the conference with a short summary and thanked the participants for their participation, support, and interest. His special thanks were given to Baker McKenzie, who energetically supported the conference, and to the Hochschule Mittweida for the excellent technical support.
The conference can be watched on YouTube entirely.