Activision Reportedly Defers CDL And Overwatch League Franchising Costs
Activision has reportedly offered financial support to organisations and ownership groups of both the Call of Duty League and Overwatch League following the ongoing struggles through the global pandemic.
If reports are to be believed, Activision is allowing teams to defer their multi-million dollar franchise fees that would have been due later this year. The fees are a result of buy-in to both competitive leagues which have since concluded.
The Washington Post claims that this has been in the works for months as the coronavirus limited the effects of the leagues, especially with the switch online. The lack of LAN events has seen sponsorships and event profits plummet, meaning that the $20million OWL buy-in, and $25million CDL buy-in was unachievable for all sides.
The structure of both leagues was to allow each team to have at least on Home Series live event in the city they represent. Ticket sales, merchandise profits, concessions, and other sales would have been a large portion of the revenue that the teams would amass throughout the year, which was canceled in April.
Click to enlargeIt is not yet clear what financial support is being made available. Back in July, rumours surfaced that the payments would be delayed, however with the pandemic still ongoing, there may not yet be a favourable date for Activision to cash in on the buy-ins.
The next seasons of both leagues are upcoming in 2021, with another buy-in fee added then, should teams want to extend their stint within the league. Many CDL teams have already tied down players with contracts, such as Chicago Huntsmen who added Brandon "Dashy" Otell to their squad. Their Overwatch cousins, the San Francisco Shock won the 2019 Playoffs, and also show no signs of slowing down, meaning that for their ownership group, NRG, the buy-ins for both sides over two years falls just shy of $100million.
It looks set that Activision will be deferring payments though, which will allow ownership groups to pay their remaining fees in more achievable sums.
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