a) Macro media industry / ecosystem, where does e-sports fit within the larger media ecosystem.
b) Overview of the esports ecosystem today and where future growth areas are.
c) Trends and forecasts in the industry (highlight key trends and forecasts).
2. Technical Accounting and Finance Issues
a) Distinct Licensing
Licenses of IP - contracts often have explicit and implicit promises, making it difficult to determine whether the license of their IP is distinct from other promised goods and services, and therefore a separate performance obligation. The ability for a customer to make use of the licensed IP without the purchase of other promised goods and services will likely indicate that the two promised goods and services are separate and distinct. We'll discuss best practices in this area.
b) Sales or Usage Based Issues
Esports or Sports tech companies often enter into contracts in which they license IP in exchange for a fixed fee as well as a sales- or usage-based royalty. ASC 606 requires that revenue be recognized either at the time that the performance obligation to which the royalties are allocated is satisfied, or when the sale or usage by the customer occurs, whichever comes later. The recognition of revenue in these circumstance is complicated by the difficulty of determining whether the fee received is a sales- or usage-based royalty. There is a significant amount of professional judgement required here.
c) Exchange of Advertising
Esports and Sports tech companies often enter into contracts wherein they license their IP to a customer in exchange for advertising rights, cash, or a combination of the two. If advertising rights are obtained, the entity must determine whether they represent contingent payments for the use of the IP, non-cash consideration for the IP, etc.
3. Case Study and Services Review
Discussion - what are the key services your firm can provide in this ecosystem. How do you position and market these services to clients?
a) Attest: Reviews and Audits
b) Tax: Corporate and International Tax Services (discuss in detail), Transfer Pricing, Personal Tax.
c) Advisory: Outsourced Accounting / CFO, ERP, Cloud, Cybersecurity
Principal - Advisory Services,