Microsoft Corporation is apparently risking a multi-million-dollar loss if the Overwatch League Teams vote to dissolve the team. It was reported that the league’s 20 teams’ collective settlement payment totaled a large sum. Currently, all Overwatch League teams are voting to determine whether or not Activision Blizzard should dissolve the league. According to Windows Central, despite the fact that voting is taking place, the majority of the teams are anticipated to vote to end the league.
If the teams decide to dissolve the organization, Activision Blizzard must pay each team approximately $6 million. Because the league has 20 teams, the tech company must spend $120 million to compensate them all. It will be interesting to see who gets what, but it’s a huge risk for Microsoft as it’s $120 million on stake.
The Overwatch League is being canceled.
If the teams decide to dissolve the organization, Activision Blizzard must pay each team approximately $6 million. Because the league has 20 teams, the tech company must spend $120 million to compensate them all. If the company fails to pay the compensation it would be a huge drawback for a tech giant.
The possibility of shutting down Blizzard Entertainment’s Overwatch League arises following the purchase by Microsoft of Activision Blizzard. After nearly two years of being patient, international authorities finally granted the deal to be sold.
Since the Activision Blizzard transaction has been completed, it is practically coming out of Microsoft’s wallet. The OWL franchises allegedly paid $7.5 million to become part of the competition, and other administrative fees have been incorporated since the league’s inception in 2017/18.
In any event, voting was instituted after Activision Blizzard, which Microsoft now owns, approached the 20 teams and proposed a strategy for the future of Overwatch 2 esports. It also urged league members to vote on whether the current league should be continued.
Other Facts to Consider Regarding the Potential Payout and League Discontinuation
According to Game is Hard, all Overwatch League teams paid substantial payments to join the organization. They spent $7.5 million to join and have spent millions more in operating costs since its inception in 2017. If the league is disbanded by the members, they must compensate the members.
Since Microsoft is now the parent company of Activision Blizzard, which founded the Overwatch League, it will be responsible for the $120 million distribution to teams. The primary explanation for the group’s impending breakup is that it has begun to lose velocity as fan enthusiasm has waned. The COVID-19 pandemic also contributed to the fall.
What’s next?
Activision Blizzard, which owns the game, will reportedly hire ‘ESL FACEIT Group’ to oversee the 2024 season, which regularly oversees esports contests for games such as League of Legends and Counter-Strike.
“The plans for the new-look Overwatch League continue to be up in the air at this point, but it’s possible it will be an open-circuit model similar to what existed before the establishment of the franchise league in 2018.”
BlizzCon 2023 unveiled Overwatch 2 which will release a new hero, map, and game mode on December 5th. At the same presentation, Blizzard discussed Overwatch’s esports side, including the Overwatch World Cup.
