At the end of a historic tournament for esports in Europe, 50,000 people gathered over four days at the Accor Hôtel Arena de Bercy in Paris for the Major of Counter Strike which saw the French team Vitality win, the Minister Sports, Amélie Oudéa-Castéra, told franceinfo that the government will not align the VAT applied to the ticketing of esport events, with that of sporting and cultural events.
The government will not align the VAT applied to the ticketing of esports shows (20%), with that of sporting and cultural events (5.5%). It’s not topical. The Minister of Sports Amélie-Oudéa affirmed and justified it to franceinfo, Sunday May 21 while she was in Bercy for the Major of Counter Strike: “Esports is growing so fast that taxation is not an obstacle at all”. Statements that, just as the Vitality team won its biggest victory, caused a lot of reaction from esports players who feel they need support. Explanations with Laure Valée, esports consultant for franceinfo, and Arthur Perticoz, CEO of the Karmine Corp club.
franceinfo: Why did this announcement make esports players react so much?
Laura Valee: It made a lot of noise. This position has disappointed the entire ecosystem of esports in France, because the industry is developing, but it is also at a pivotal moment, where it needs support, to confirm all the efforts that have already been made. made in recent years. Because like other industries, there has been a withdrawal of certain sponsors who have kept esports alive until today, or who in any case have contributed to its development.
This is explained by Arthur Perticoz, CEO of the French club Karmine Corp: “I don’t necessarily agree with the idea that esports is doing well, or that it would be doing too well to receive help. On the contrary, I believe that this is the best time to help. American clubs show that it’s very difficult. Fundraising is drying up. So I think it’s now or never to help the clubs, because we’re at a pivotal moment where we’re going to have to find something to be profitable, especially on events, but not only.
So I would rather tend to think that it’s now that we have to be helped, rather than believing that as we would have hype, as we would have buzz, likes, well, it’s easy for us to pay the salaries, because that is not the case at all. And again, we are privileged at Karmine.”
And what Arthur Perticoz says is also confirmed by information we learned last week. The cessation of the esports activity of LDLC, a historic French team, more recently supported by Olympique Lyonnais.
We can still wonder if a VAT aligned with sport and culture, as requested by the sector, would really change the situation?
Laura Valee: Yes, of course it would. This VAT represents a lot of losses on the margins of event organizers, such as Karmine Corp.
Arthur Perticoz points this out: “Today what I need to understand is that Karmine Corp is probably one of the most impacted clubs, in France and in Europe. We are behind Zerator, of course, who is the king of events, but at the level of esport clubs we are very impacted. For example, for the year 2022, we would be on a shortfall of between 75,000 and 150,000 euros. In 2023, we would be almost double.
A Bercy, a KCX 2 for example, it would be 80,000 euros more, to put in the event. It can also allow a reduction in the value of tickets for fans, who would pay less. It could help us in many ways: to make these events profitable, because it’s not obvious, far from it. You really have to understand that for Karmine Corp, events, we don’t particularly earn money on it, but it’s a way for us to grow, to make an impression, to generate additional income over several years.“.
“I think that it is rather on the side of the Ministry of the Economy that we must do our work of influence. We must take up the subject, this is now what we are going to do.
Arthur Perticoz, CEO of Karmine Corpfranceinfo
So there, it’s the example at the level of Karmine Corp, so it’s local, it’s French, but Robbie Douek, the boss of Blast, the company which organized the tournament in Bercy and which is based in Denmark, believes for his part that “it is a brake for international players“. He points out that “other countries are implementing initiatives to reduce costs for organizers“.
This refusal, reaffirmed by the government, to align the VAT on esports with the reduced rate for culture and sport, does not discourage Arthur Perticoz: “I am extremely confident that we will find solutions. I think everything is lined up for that. I am convinced that the Minister of Sports and the Minister of Digital are rather favorable to this request, they pushed it. And I think that it is rather on the side of the Ministry of the Economy, that we must do our work of influence. We have to take the subject, now that’s what we’re going to do, we’re going to make progress on this, I’m sure we will“.