According to a report by ESPN Activision Blizzard is having a hard time trying to entice franchises to the upcoming Overwatch League, according to multiple sources, who also claim that there's a $20 million USD franchise fee, a factor that may be a potential reason for this struggle.
That's not all though, as these sources claim that this price could increase in larger markets such as Los Angeles, and that teams aren't guaranteed revenue sharing until after 2021, and if Blizzard meets unspecified criteria. On top of this, the sources also state that if a team were to sell its spot in the league, the league itself would get 25% of the proceeds.
ESPN's sources claim that the price is the issue for many teams or potential investors, but that the league itself is still desirable and a popular concept.
A report earlier this year from investment management firm Morgan Stanley claimed that the Overwatch League could make $100 million USD base revenue, and could even generate up to $720 million in a confident market, but doubts have arisen since multiple teams have dropped their Overwatch rosters recently, including Splyce, compLexity Gaming, and TSM, some speculating that this has to do with the cost of the League (although this is only speculation at this stage).
How successful do you think the Overwatch League can be?
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