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Is the Price of Professional Franchise Gaming Too High?

Posted by Suzie Ford on May 11, 2017  | Comments

Is the Price of Professional Franchise Gaming Too High? -

Blizzard is investing itself heavily in eSports with the recent announcement of a dedicated division called Major League Gaming (purchased in 2015) that will oversee the Overwatch League and World Cup. Franchise costs reportedly are in the $20M+ range causing many professional eSports teams to disband their Overwatch divisions. By comparison, League of Legends Championship Series sports a $1.8M price tag.

According to ESPN:

Multiple sources said Blizzard is asking for a $20 million franchise fee for the league featuring its popular 2016 title, with prices escalating from there in larger markets such as New York and Los Angeles. However, following the $20 million buy-in, teams are not guaranteed revenue sharing until after 2021 and only if Blizzard meets certain criteria that sources did not disclose to ESPN. Additionally, sources said if a team sells its spot to another party, the league would receive 25 percent of the proceeds.

Several professional teams have issued statements directly citing costs and the "transitional" nature of the league at the present time as deterrents to keeping a dedicated roster of players on hand. CompLexity Gaming, Team SoloMid, Splyce, Denial Esports and Red Reserve have all released their OW squads.

Interestingly, PCGameN reported the other day that a pair of NFL franchises have been making initial inquiries about sponsoring Overwatch League teams. Both the New England Patriots and the Miami Dolphins are reportedly in talks with Blizzard to secure "multi-million dollar deals".

The plan is for the Overwatch League to debut at this year's Blizzcon.

Read more at any of the links above.


Suzie Ford / Suzie is the former Associate Editor and News Manager at Follow her on Twitter @MMORPGMom
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