Pittsburgh Knights founder James O’Connor posing next to the Steelers’ six Lombardi Trophies. Credit: SBJ
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Of all the traditional sports clubs that have made a big splash in esports, the Pittsburgh Steelers don’t come to mind. But even if the six-time Super Bowl champions haven’t made a major financial commitment, there’s a 12-person esports operation working alongside Steelers staff at headquarters.
The Pittsburgh Knights , a team founded by Pittsburgh resident James O’Connor, gets daily advice and assistance from Steelers staff on matters including merchandising, apparel, sponsorship sales and marketing. Not to mention the office space and introductions to a network of businesses and individuals close to the team and the Rooney family.
All this stems from the Steelers’ decision last fall to acquire a minority stake in the Knights. Terms are not public, but it was a modest bet compared to some of the 8-figure asset takeovers or franchise slot purchases made by owners of the Patriots and Rams. The Knights, majority owned by O’Connor, field teams in eight games, but lack a presence in the global hit Counter-Strike: Global Offensive , or Overwatch and League of Legends , the two franchised leagues that drive the most asset value.
But the Steelers’ interest in esports is bigger than the size of the deal suggests. The Steelers saw the Knights relationship as a way to help build an esports scene in Pittsburgh and unlock new data about possible future fans, said Omar Khan, vice president of football and business administration.
“We’ve been diving in, trying to understand the esports atmosphere, and it’s intriguing to us,” said Khan. “Where this industry’s going to go, nobody knows, but we feel there’s an opportunity there to connect with fans, specifically internationally, who maybe aren’t necessarily Steelers fans right now.”
Most of the Knights’ business operations have benefitted from the Steelers’ touch. O’Connor received a call last fall from an insurance broker friendly with the team, offering his assistance on workers’ compensation and other insurance needs. O’Connor regularly meets with Bob DeNove, managing partner of Deloitte’s Pittsburgh office, to go over financial projections and strategy.
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Another Steelers-inspired tip for the Knights, who have copied the citywide black-and-gold color scheme: “You don’t want to put yellow close to the neck – it doesn’t sell well,” O’Connor said. Steelers employees are helping the Knights build an e-commerce site, and have introduced O’Connor and his team to their global fulfillment partner, ABDI, along with contacts at New Era and Icer Brands. They also are working to sell Knights gear at Heinz Field and develop local gaming events.
It’s an open-ended relationship, designed to limit the Steelers’ risk while also utilizing its resources to build the Knights, founded in 2017.
Khan declined to discuss the Steelers’ expectations for the Knights investment or possible future funding rounds. But, he said, the Steelers like the city-based franchise model being developed by Activision Blizzard , in both the Overwatch League and the in-development Call of Duty World League. A spokesman said the Pittsburgh brand also helped make the case to owner Art Rooney II, who liked the idea of developing a team for his home city.
“We have definitely been in intrigued by the esports space, and we continue to learn what direction the space is going to go, and what opportunities arise from it,” Khan said. “In my opinion, we’re still in the early innings.”
O’Connor also said the Steelers’ long-term intentions are still to be determined, but for now, they’re happy to work together. “I think that’s a question that’s not fully been answered yet, but ‘how do we help?’ is the way it’s been described to me,” O’Connor said. “They want to build and support the company with their expertise.”
Ben Fischer is a staff writer for Sports Business Journal, where this article first appeared.