While Activision Blizzard had some bright spots in its recent Q2 financials, there’s a definite shadow over esports. After laying off a reported dozens of esports staff, the future of the Overwatch League is uncertain.
According to a segment of the financial report released today (as cited in a report from The Verge)
“During the second quarter, we amended certain terms of our collaborative arrangements with team entities participating in the Overwatch League. According to the amended terms, following the conclusion of the current Overwatch League season, the teams will vote on an updated operating agreement.”
While this affirms that plans are still in place for the current season, it’s after the season ends that things start to get a little murky. After the season ends in October, the teams will have to agree to Blizzard's updated and amended terms of the agreements that they are putting forth for Overwatch League teams.
“If the teams do not vote to continue under an updated operating agreement, a termination fee of $6 million will be payable to each participating team entity (total fee of approximately $114 million),” the report continues. Teams that want to walk away and not agree to any amended agreement, will walk away with a 6 million payment.
There have been some financial issues across the league, with Activision Blizzard reportedly owed hundreds of millions of dollars in franchise fees from Overwatch and Call of Duty leagues after the Covid-19 pandemic impacts on the economy. Last month, Blizzard waived a portion of franchise fees for some teams in order to keep them able to participate in this season's league.
Hello internet, I was unfortunately part of the Activision/Blizzard Esports layoffs yesterday and will now be looking for Producer/Editor work!I started working on the OWL Content team back in 2019 during Season 2 & have truly loved every minute of the last 4 years ?? https://t.co/6WBWCvsmU8 pic.twitter.com/K6t8WT818F
— Andrew Bishop (@bishuuup) July 19, 2023
Whether the teams eventually vote to leave and take the payout or to coalesce into a smaller league, that remains to be seen. With the updated agreements being presented and a much leaner esports division, something smaller emerging–if the OWL survives, seems a likely bet.
