Types of organizations in eSports

Since an organisation is ultimately the result of societal needs and shares collective goals that are linked to both its internal and external environment, such organisations can take many different forms.

There are a variety of legal types of organisations (although we will only be looking at those used for eSports), however, since sport in South Africa is governed by the Sports and Recreation Act of 1988 (as amended), the types of organisations that may be used are regulated by South African law. Such organisations may be:

• companies, being associations incorporated in terms of the Companies Act,
• national federations made up of associations,
• provincial federations made up of associations,and
• clubs made up of associations or individuals.

Essentially, any organisation that does not have a constitution or founding documents in line with the South African Companies Act is either run as a partnership (if ownership is jointly claimed by more than one person, or as a sole-trader (if ownership is claimed by a single person). It is the constitution (or founding documents) that ultimately defines the organisation and spells out the nature of such organisation.

It is important to note that the owners of a partnership and the owner of a sole-trader are personally liable for all debts.

Organisations that are of a profit making venture 

These include:

• Sole-traders,
• Partnerships, and
• Companies that are of a profit making venture.

The above listed bodies are excluded from applying for the benefits that are listed below.

Organisations that are non profit organisations

These include:

• Non profit companies,
• Clubs, and
• Associations.

All of the above qualify for all the benefits as listed below.

Benefits of a properly Constituted organisation

The benefits that accrue to sole-traders and partnerships are indeed limited. Not only are the owners liable to be taxed in their own hands for all sponsorships and winnings, and are liable in their own right, but none of the benefits which accrue to properly constituted organisations can be accessed by sole-traders and partnerships.

The benefits which may be accessed by properly constituted organisations are:

• Local government funding,
• Provincial Government funding
• National government funding
• Jack Cheetham Award (R500,000.00 for the winning programme)
• Letsema Award (R500,000.00 for the winning programme)
• Funding from the National Lottery Trust Fund
• Participation in the S A Sports Awards
• Participation in Regional Sports Councils
• Participation in the Provincial Sports Councils
• Participation in Mind Sports SouthAfrica
• Limited liability for the members and office-bearers (depending on the Constitution)

Public Access to Information Act of 2000 (PAIA)

The Promotion of Access to Information Act was passed in 2000, its main aim is to allow members of the public to assert their right to information.

The Act requires that all public and private bodies register PAIA manuals. Certain levels of business may qualify for the further extension to 31 December 2015 while other still have to submit their manuals in terms of the legislation to the Commission.

These private bodies that have been granted the extension are those which operate in specific sectors, with 50 or more employees OR operate in specific sectors and have an annual turnover equal to or exceeding specific amounts.

According the SAHRC website, "while these private companies no longer have to submit manuals during the period of the new exemption they are not exempted from complying with the rest of the Act."

There are legal penalties that may be imposed for non-compliance.

List of National Organisations

Name of organisation	Type of organisation
South African Sports Confederation and Olympic Committee (SASCOC)	Non Profit Company
Mind Sports South Africa	Association

List of other organisations

Name of organisation	Type of organisation
Knights Mind Sports Club	Association
Pretoria Boys eSports Club	Association
Roedean Mind Sports Club	Association
St John's Mind Sports Club	Association
University of Witwatersrand Wargames Club	Association

Are sponsors limiting the growth of eSports?

To date clans cluster around sponsors like hounds around the master who throws scraps to the baying pack to placate the insatiable demand.

All the scraps do is temporarily satiate the hunger pangs which quickly return and leave no real respite.

So does the current sponsorship of eSports. 

Clans sell their brands for little and the sponsorship thus received does little to promote growth of gaming in terms of the number of gamers, standard of gaming or even the long-term financial sustainability of gaming.

As a result the sponsors too feel they are under siege. As the clans yelp around the sponsors for sponsorship, the sponsors are acutely aware of the transient nature of the clans.

In business, any company that has not been in existence for at least ten years is considered to have a high rate of failing. Yet, it is only the clubs based at schools and universities have survived for more than ten years with very few exceptions.
Sponsors are also more than aware that most, if not all, clans have no legal status and are often nothing more that individuals operating as Sole-traders. 

The opportunity for sponsors to thus claim any sponsorship as social development in order to win much needed BEE points is thus negated, and the sponsors themselves are aware that such sponsorships should be treated by those clans as income in the hands of the owners of such clans.

Also, many of the sponsors are aware that many gamers will in fact not buy their products. Gamers are without doubt a very discerning breed when it comes to technology and will favour picking-and-choosing what they need to build up their 'rigs' rather than just buying a finished product.

The types of sponsorships received thus do little for long-term development. While it is nice for a clan to secure hardware for their top clan, such a sponsorship does little to promote gaming and the profitability of the sponsor itself.

And therein lies the rub!

Unless sponsors can see that by sponsoring eSports that they will do more business, it remains more profitable for sponsors to sponsor football, rugby, and/or cricket.

Everybody in eSports thus has a duty to ensure that the sponsors can and will do better.

This does not mean that everybody must run out and quickly start purchasing computers, screens and the such.

Instead, every gamer must help to make it possible for prospective sponsors to substantially increase sales.

One of the ways to do this is to simply tap into NATIONAL LOTTERY FUNDING (NDLTF).

Of course there are criteria that have to be followed in order to do this, but it can be done!

Any club affiliated to the MSSA can apply for up to R200,000.00 per annum. The monies can be spent on equipment, kit, travel and entry fees, but only if:

• a. the club is affiliated to the recognized national federation, and
• b. has at least three year's audited financial statements.

Through participating in the NDLTF in this way, gamers will be able to unlock substantial amounts which will benefit sponsors and sponsored alike.

The money received will be spent on purchasing new equipment, which will increase the amount of sales and will further encourage companies to commit larger amounts to sponsoring both clans and events.

The growth can thus be exponential as more and more money will be spent in the computer industry.

Remember that approximately R400 million is earmarked every year for sport – it is foolish not to take advantage of this gilded invitation.

By following this course of action, gamers will have taken the initiative in controlling the destiny of eSports in South Africa to become the masters of their own fate.

Are sponsors limiting the growth of eSports?

To date clans cluster around sponsors like hounds around the master who throws scraps to the baying pack to placate the insatiable demand.

All the scraps do is temporarily satiate the hunger pangs which quickly return and leave no real respite.

So does the current sponsorship of eSports. Clans sell their brands for little and the sponsorship thus received does little to promote growth of gaming in terms of the number of gamers, standard of gaming or even the long-term financial sustainability of gaming.

As a result the sponsors too feel they are under siege. As the clans yelp around the sponsors for sponsorship, the sponsors are acutely aware of the transient nature of the clans. In business, any company that has not been in existence for at least ten years is considered to have a high rate of failing. Yet, only the clubs based at schools and universities have survived for more than ten years. Bravado is one of the few clans that is coming up to its tenth year of existence through the herculean efforts of 'bvd-cent'.

Sponsors are also more than aware that most, if not all, clans have no legal status and are often nothing more that individuals operating as Sole-traders. The opportunity for sponsors to thus claim any sponsorship as social development in order to win much needed BEE points is thus negated, and the sponsors themselves are aware that such sponsorships should be treated by those clans as income in the hands of the owners of such clans.

Also, many of the sponsors are aware that many gamers will in fact not buy their products. Gamers are without doubt a very discerning breed when it comes to technology and will favour picking-and-choosing what they need to build up their 'rigs' rather than just buying a finished product.

The types of sponsorships received thus do little for log-term development. While it is nice for a clan to secure hardware for their top clan, such a sponsorship does little to promote gaming and the profitability of the sponsor itself.

And therein lies the rub!

Unless sponsors can see that by sponsoring eSports that they will do more business, it remains more profitable for sponsors to sponsor football, rugby, and/or cricket.

Everybody in eSports thus has a duty to ensure that the sponsors can and will do better.

This does not mean that everybody must run out and quickly start purchasing computers, screens and the such.

Instead, every gamer must help to make it possible for prospective sponsors to substantially increase sales.

One of the ways to do this is to simply tap into NATIONAL LOTTERY FUNDING (NDLTF).

Of course there are criteria that have to be followed in order to do this, but it can be done!

Any club affiliated to the MSSA can apply for up to R200,000.00 per annum. The monies can be spent on equipment, kit, travel and entry fees, but only if:

a. the club is affiliated to the recognised national federation, and

b. has at least three year's audited financial statements.

Through participating in the NDLTF in this way, gamers will be able to unlock substantial amounts which will benefit sponsors and sponsored alike.

The money received will be spent on purchasing new equipment, which will increase the amount of sales and will further encourage companies to commit larger amounts to sponsoring both clans and events.

The growth can thus be exponential as more and more money will be spent in the computer industry.

Remember that approximately R400 million is earmarked every year for sport – it is foolish not to take advantage of this gilded invitation.

By following this course of action, gamers will have taken the initiative in controlling the destiny of eSports in South Africa to become the masters of their own fate.