OverActive Media, the parent company of Activision Blizzard franchised teams in the Overwatch League (Toronto Defiant) and the Call of Duty League (Toronto Ultra), has announced that all outstanding entry fees for the Overwatch League have been waived. The entry fee value was originally set at $6 million.
In June, it was reported that OverActive Media’s deal also extended to the rest of the league, meaning that all teams had their entry fees waived. OverActive Media has made this announcement due to being a public company and therefore required by Canadian law to disclose relevant business information. The initial slots in the Overwatch League were valued at around $20 million, while expansion league slots were valued at approximately $30-35 million. The Toronto Defiant were an expansion team. OverActive Media CEO Adam Adamou clarified that the elimination of the entry fee balance was dependent on completing the season.
It is important to note that the waiving of the entry fee was conditional on finishing the OWL season and does not relate to the upcoming vote. Both the entry fee and the vote were coincidentally for $6 million, but they are unrelated.
Details about the waiving of fees and the vote to withdraw an additional $6 million from the league have been known since the summer. This marks the beginning of the end for the Overwatch League as we know it from a business perspective, and serves as a signal for the decisions that CEOs will soon make regarding their franchised slots.
The formation of the Overwatch League will be remembered as a misjudgment of the esports industry and the impact of the COVID-19 pandemic. The league initially followed the model of traditional sports franchised leagues like the NFL and NBA, but later shifted to geolocated teams and a home/away plan. This move underestimated the importance of regional fandom in esports and overestimated the league’s potential for growth.
While the Overwatch League fell short of the high expectations outlined in the Morgan Stanley report, it also faced challenges due to the pandemic. Just as the league was preparing to transition to its homestand model, international travel restrictions and safety concerns surrounding large gatherings hindered its plans.
The future of the Overwatch League is becoming clearer, but unfortunately for fans, it appears to be a short one.
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Source: DOTESPORTS
