Overwatch League was founded back in 2017 and is observing major changes in its ecosystem. These changes are coming as a shock to many fans as Activision had been laying off staff from its esports department.
All the information regarding these changes surrounding Overwatch League had been released by Blizzard in their second quarter earning report. In this, the higher-ups explained that many changes will be coming to the esports system of the game. Teams who will not comply with these upcoming changes will have to pay a sum of $6,000,000 as a termination fee.
Since this move from Activision Blizzard is surprising, not many are understanding what’s going on. Thus we have penned this article explaining everything about the changes coming to the game esports scene from here on.
Overwatch League will charge participating teams $6,000,000 dollars if they try to leave
Back in 2022, it was reported Activision Blizzard owed 390 to 420 million dollars for hosting Overwatch and Call of Duty esports events. Sending the company into a huge financial emergency last year. However, Microsoft proposed a merger agreement in which the tech giant would acquire Activion at a price of $95 per share in an all-cash transaction.
Overwatch League will be offering esports teams a $6,000,000 termination fee if they do not agree with an upcoming operating agreement to continue the League or not
This could be the end of the Overwatch League… pic.twitter.com/Dnf8viLAiQ
— Jake Lucky (@JakeSucky) July 19, 2023
However, in July 2023, Activision Blizzard mass lay off staff from their esports division to bring about changes to the system after the end of the current season. Additionally, more changes will be arriving in the professional esports league which will affect collaboration with teams.
With the conclusion of the current OWL season, participating teams will be voting on an updated operating agreement. If teams fail to comply with these changes to the operating agreement, then a termination fee of $6,000,000 for each team entity.
Activision also admitted that Overwatch League hasn’t been much effective in terms of profit by saying this:
Total revenues from the Overwatch League comprise less than 1% of our consolidated net revenues
With the state of things right now, it is likely that the league will dissolve as franchise owners might not continue to invest in it further. However, it cannot be affirmed as no official press release has been passed from the end of both Microsoft and Activision Blizzard.
That is all you needed to learn about the charges being imposed on esports teams participating in Overwatch League. If you found this article helpful, check out similar content by clicking here.
