According to the Sports Business Journal, Activision Blizzard will purportedly waive all of the competing teams’ outstanding Overwatch League franchise costs. The Toronto Defiant franchise’s owner, OverActive Media, had earlier today announced that a deal had been reached with the League to waive the franchise’s “outstanding entry fees,” as well as to include a “early payment of league revenue share” and a new sponsorship arrangement. The sponsorship agreement was a “major part” of the transaction, OverActive CEO and co-founder Adam Adamou said to Dot Esports, though he was unable to provide more details.
According to SBJ, sources that spoke to the outlet reportedly said “the entire Overwatch League has had their remaining entry fees waived as well.” Teams across the league reportedly still owed “anywhere between $6 and $7.5 million.” OverActive noted in their announcement that their agreement with OWL (including the sponsorship and early revenue share) was valued at $10.8 million Canadian dollars, or roughly $8.04 million USD.
OverActive going public with their agreement is likely due to the company’s status as a publicly traded company, meaning they have to disclose deals such as these or risk legal issues. OverActive originally led the collaborative negotiating effort with Activision Blizzard back in January, after retaining British law firm Sheridans to negotiate with the OWL on behalf of the teams.
The SBJ report also notes that additional sources have come forward to say that Call of Duty League teams may also ask Activision Blizzard for a a similar deal. Supposedly, Activision Blizzard is looking to “clean up some of its balance sheet” ahead of the impending Microsoft acquisition. OverActive’s chief commercial officer Alyson Walker told SBJ that the company is “open” to having those discussions with Activision Blizzard.
Dot Esports has yet to receive any official comment from Activision Blizzard or the Overwatch League.