OWL was slated to start its first season with the full homestand model the property was predicated onACTIVISION BLIZZARD
Activision Blizzard is talking with owners of its Call of Duty League and Overwatch League franchises about providing some form of financial relief amid the coronavirus cash crunch, including possibly delaying franchise payments, according to sources. This was due to be a big year for both leagues, as OWL was starting its first with the full homestand model that the property was predicated on, while CDL was starting its first year under a newly reformatted franchise system that also included geo-located teams and home games. However, both leagues have had to move to online-only models for this year, shaking up the business models for the leagues and teams, many of whom were hoping to be profitable for the first time in ‘20. Sources said financial relief could come in different forms, and delaying franchise payment fees -- among the biggest annual expenses right now -- is an obvious choice on the table. Activision had no comment. OWL franchises reportedly went for around $20M when the league first began in ‘18, but expansion franchise fees the following year were said to go beyond that figure. CDL franchises reportedly went for $25M.
INTERESTING WORDS FROM NRG: The move to offer financial relief comes after NRG Esports co-Founder & co-CEO Andy Miller last week on the Watchtime Podcast suggested in hindsight, he may have passed on buying an OWL franchise and instead just focused on CDL. NRG owns the OWL S.F. Shock and CDL Chicago Huntsmen. Miller on the podcast said, “They’re both going through growing pains and both trying to figure it out. … It’s a bet right now to figure out the right model, figure out how to survive in this pandemic without events, because actually the events for Overwatch sold really well.”
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