Activision Blizzard will reportedly waive the remaining Overwatch League franchise fees for all the competing teams that still owe them, according to the Sports Business Journal.
The report today comes just a few hours after OverActive Media, the company that owns the Toronto Defiant franchise, announced it had reached a deal with the League to eliminate the franchise’s “outstanding entry fees,” while also including an “early payment of league revenue share” as well as a new sponsorship deal. While he was unable to give specifics, OverActive CEO and co-founder Adam Adamou told Dot Esports that the sponsorship deal was a “major part” of the agreement.
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.
