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Activision Blizzard has revealed that Overwatch League franchise homeowners might be voting on a revised ‘working settlement’ as soon as the present season concludes. This disclosure was made in a monetary submitting by the corporate.
Within the occasion that groups resolve to not proceed working underneath the up to date settlement, they are going to be required to pay a termination payment of $6 million per franchise. The entire price of those termination charges, if all groups select this feature, would quantity to $114 million.
The knowledge relating to the voting and termination charges was disclosed as a part of Activision Blizzard’s Q2 monetary outcomes. Inside these outcomes, it was additionally disclosed that the overall revenues generated by the Overwatch League represent lower than 1% of the corporate’s consolidated internet income.
As beforehand disclosed, our collaborative preparations for our skilled esports leagues proceed to face headwinds. Throughout the second quarter, we amended sure phrases of our collaborative preparations with group entities taking part within the Overwatch League. In line with the amended phrases, following the conclusion of the present Overwatch League season, the groups will vote on an up to date working settlement.
2023 Monetary Outcomes
The monetary submitting didn’t present particular particulars concerning the vote, corresponding to the brink wanted for it to go, the precise content material of the up to date working settlement, or the date when the vote would happen. Nevertheless, it was talked about that the vote is anticipated to happen on the finish of the present Overwatch League season, which is scheduled to finish on October 1st.
In June, OverActive Media, an Overwatch League franchise slot proprietor, made an announcement stating that they’d reached an settlement with Activision Blizzard to clear their excellent franchise payment funds. This deal was valued at $6.5 million and included a sponsorship association between the 2 events. Whereas OverActive Media needed to disclose the deal publicly as a result of it’s a publicly traded firm, it’s extensively believed that different franchises could have additionally had their remaining charges waived in comparable offers.
Apparently, primarily based on the disclosed $114 million complete in termination charges, with every franchise receiving $6 million, it means that there are 19 franchises. That is peculiar as a result of the Overwatch League was initially supposed to have 20 franchises. In Could, The Esports Advocate reported that the Chengdu Hunters had disbanded, however the destiny of Chengdu Hunters’ franchise slot was not formally confirmed.
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