While fans of Overwatch and its esports scene can rejoice in the return of the Overwatch World Cup in 2023, absolute chaos is being felt in the Overwatch League: most teams are moving collectively against Activision Blizzard for concerns related to the profitability of the competition.
To talk about it in detail was the investigative journalist Jacob Wolf, who published on his site ain-depth analysis of what happened. According to reports, almost all the teams registered in the Overwatch League have hired a British law firm to start a bargaining process against the organizersor Activision Blizzard, after years of high operating costs and false revenue promises hitting organizations hard.
The goal is one: to make sure that the teams receive financial help to support their activities. In recent years, each team has spent an estimated $7.5 million to $10 million over the past six years, plus $1 million annually, to pay players, league membership, and other operating costs. Although the latter are lower in the Overwatch League than in any other esports league, the price to pay for each franchise to participate in the OL is the highest in the sector, so much so that we are talking about fees between 20 and 35 million dollars per single team.
With operating costs, therefore, still very high and teams that are not owned by large conglomerates or public companies, profits are evidently absent. The example of the Houston Outlaws made by Jacob Wolf is evident: despite revenues of 1.4 million dollars, mainly from advertising, the team remains at a loss. As if that weren’t enough, the Overwatch League has no sponsor after the 2021 harassment allegations and lawsuits, and it also lacks a media partner since YouTube canceled its exclusivity deal.
This being the only report on the matter, it is preferable to take it with a grain of salt pending further confirmation. We will of course keep you updated, given the potential impact this story may have on theentire Overwatch esports scene.
