Adelaide have made Australian sporting history by becoming the first mainstream sports organisation in the country to buy a professional eSports team.

The Crows have bought professional outfit Legacy eSports – one of Australia's eight top-tier teams that competes in the Oceanic Pro League playing the game League of Legends. Legacy eSports are based in Sydney.

Fairfax Media understands Legacy will keep its identity and branding at this stage. A decision has not been made on whether Legacy will eventually take on the Adelaide Crows' name, branding or colours.

The deal was driven by Crows' dual premiership player and current chief operating officer Nigel Smart, who was keen to make the Crows the first AFL club to be in eSports.

It is also understood the Crows were in discussions for some months with at least one other professional Australian eSports team regarding an acquisition deal. The Crows and Legacy eSports would not reveal how much the deal was worth but it is understood to be a six-figure sum.

The Philadelphia 76ers (NBA) and Paris Saint-Germain (French soccer) have similar arrangements with eSports teams in the US and Europe.

Crows chief executive Andrew Fagan said Adelaide would offer Legacy's eSports professionals the opportunity to hone their craft in an elite, high-performance environment.

"It [eSports] is hugely popular with millennials and there are enhanced opportunities for current and new corporate partners to engage with younger, digital and social media-savvy audiences," Fagan said.

"In many ways, eSports represents the intersection of technology, media and entertainment, which are all a key part of our strategic focus.

eSports is the global phenomenon of professional video game players competing in teams for lucrative prize money. Competitions take place online and in stadiums. They are watched by millions around the world.

Individual players and teams have amassed huge online followings and struck enormous sponsorship deals. Australia's eSports industry is not yet as lucrative as the industry in the US, Europe and Asia. However the Crows-Legacy deal is a watershed moment for eSports in Australia.

Legacy eSports and other top-tier eSports teams often travel overseas to compete and also compete against overseas teams from bases in Australia.

League of Legends – Legacy's main game – is the most popular eSports game in the world. In League of Legends teams battle each other in virtual arenas by controlling fictional characters with different powers.

The global eSports industry is estimated to be worth $1.2 billion. It attracts an annual audience of 239 million people mostly from the 14-to-34-year-old age group.

Fairfax Media reported this month that the AFL was keen to be involved in eSports because of its audience size and demographic.

The AFL believes extending its brand and its clubs' brands into eSports will drive sponsorship revenue for the league and clubs.

The league wants to run an eSports tournament out of Etihad Stadium. It also wants clubs to sponsor or acquire professional eSports teams, as Adelaide have.

"Our traditional revenue streams are obviously strong, as evidenced through our record attendances, membership, corporate hospitality, sponsorship and merchandise return," Fagan said.

"While we will forever remain focused on our core objectives of winning football matches, we need to continue to diversify our activities and programs.

"Last year we successfully established a team in the AFLW that represented the club proudly and supported increased engagement with our female supporter base.

"Our investment in Legacy is obviously very different and new in this country but will become a very important part of our club."

Earlier in May, Sydney's Qudos Bank Arena hosted an Intel Extreme Masters Tour event – the equivalent of events in tennis' ATP or WTA tour.