New York Mets Owners Create Esports Organization Called Andbox

(Bloomberg) -- New York will get its first esports organization spanning multiple franchises, the latest bet that the $1 billion professional-gaming industry can give traditional sports a run for their money.

The group, called Andbox, was unveiled Tuesday morning by an investment fund backed by the owners of the New York Mets. The new organization will hold the New York teams in professional video-game leagues centered around two separate Activision Blizzard Inc. games: Overwatch and Call of Duty.

It also will bring more gaming-related events to the New York area, and build out a merchandise division starting with apparel.

Andbox was launched by Sterling.VC, an early-stage investment fund backed by Sterling Equities -- the family office owned by the Wilpon and Katz families. Sterling’s assets include the Mets and Sportsnet New York, a regional sports network.

“Being at the forefront of gaming in New York is a once-in-a-lifetime opportunity,” said Scott Wilpon, an Andbox co-founder and Sterling.VC partner. “We are excited by all of the possibilities Andbox unlocks to represent New York in the world’s preeminent esports leagues, and we’re continually on the lookout for new opportunities that resonate with gamers both locally and globally.”

Testing Ground

The name is a nod to the term “sandbox,” used in gaming and software development to describe an environment where new concepts are tested. Sterling.VC declined to comment on the valuation of the new endeavor, or the amount of money invested.

Sterling.VC bought the Overwatch League’s New York franchise back in 2017 for a $20 million commitment. In its first year, New York Excelsior was one of the league’s top teams, lasting until the semifinals of the season-ending playoffs. It also has the league’s top-selling jersey, according to Andbox.

All Overwatch League teams have been based in Los Angeles, but they’ll decamp for their assigned cities starting next year. Wilpon said the group is currently evaluating its options regarding where it will hold home games once the team is based in New York.

Earlier this year, Sterling also bought into the upcoming Call of Duty league, with franchises selling for a reported $25 million. Its unclear when that league will begin operations.

Andbox plans to take a similar approach as traditional sports teams like the Mets or New York Knicks, which have built other business opportunities around their franchises. During the Excelsior’s matches, for example, the team has held a number of sold-out watch parties, plus tournaments and meet-and-greets when the team is back in New York. They also opened a pop-up shop in Brooklyn, and collaborated on apparel with brands like Champion, New Era and Undefeated.

To contact the reporter on this story: Eben Novy-Williams in New York at enovywilliam@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Rob Golum

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