The Overwatch<\/em> League as we know it could be coming to an end with Activision Blizzard effectively giving the franchise owners the chance to grab some money and get out, while also reportedly laying off a large number of employees in its esports division.<\/p>
In the company’s second-quarter 2023 financial results, Activision Blizzard addressed<\/a> the ongoing issues regarding the Overwatch<\/em> League. At the end of the current season, teams will vote on an “updated operating agreement” and the teams that do not vote to continue will be paid a termination fee of $6 million.<\/p>
This decision effectively puts the fate of the Overwatch<\/em> League in the hands of the current owners, which doesn’t paint a bright future. At the beginning of this year, a majority of teams came together to hire a law firm to represent them in the first steps of a collective bargaining process<\/a>. Many teams sought economic relief after spending millions on players over the past few years, while revenue dipped due to expiring media rights deals and an exodus of sponsors. The teams were provided some relief last month when the OWL reportedly waived all the remaining franchise fees<\/a> owed.<\/p>
Related: FTC could still throw a wrench into Microsoft\u2019s deal to buy Activision Blizzard<\/a><\/strong><\/p>
Within this section of the report, Activision Blizzard revealed that the total revenues from the OWL made up less than one percent of the company’s “consolidated net revenues.” Just yesterday, according to a report from The Verge<\/a>, around 50 employees were laid off from the company’s esports department.<\/p>
