Activision Blizzard is allowing Overwatch League and Call of Duty League teams to "defer multimillion-dollar franchise fees that were due this year to account for the financial turmoil brought on by the coronavirus pandemic," according to sources cited by Teddy Amenabar of the WASHINGTON POST. The offer by Activision Blizzard is an "acknowledgement that its competitive gaming leagues face serious financial challenges." Since late January, the pandemic has "derailed the ambitious international travel schedule" lined up for the third season of the OWL and the "live tournament events prepared for the inaugural season" for the CDL in North America. The Esports Observer in July first reported that the leagues and franchise owners "were discussing 'some form of financial relief' and one of those options was delaying franchise payments." Ten of the 12 investors in the CDL "also have teams in OWL," and, in both leagues, teams were "preparing to host marquee live events in front of thousands of fans this year." The ticket sales, merchandise and sponsorships for these in-person events were "all intended to be a key source of revenue for franchise owners." The first franchise slots into OWL and CDL were "reportedly sold" for $20M and $25M, respectively. Every year, franchise owners are "expected to pay a predetermined portion of the original price tag." If a team decides to defer the payment this year, the cost "will then be split among the payments in 2021 and thereafter" (WASHINGTON POST, 9/30).
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