Restructured Call of Duty League Team Agreements Benefit Franchises
The Call of Duty League has implemented new team agreements aimed at providing revenue and economic relief to teams, ensuring the long-term success of competitive Call of Duty.
Four Key Changes to Call of Duty League Team Agreements
In an official announcement, Call of Duty League general manager Daniel Tsay revealed four major changes to team agreements. These changes exemplify the league’s commitment to supporting the financial success of its franchises.
Improved Financial Support for Teams
Let’s dive into the four changes that will benefit Call of Duty League teams:
- All outstanding franchise entry fees will be eliminated, and teams will be refunded any fees previously collected. This injection of capital provides instant relief to all teams.
- Teams will earn increased revenue from the sale of in-game merchandise and the yearly Champs bundle.
- Event subsidy amounts for teams hosting live, in-person events (such as Opens, Majors, and Champs) will be increased.
- Each team will receive a two-year minimum revenue guarantee, allowing for further investment with peace of mind.
This restructured agreement means that teams will receive a full refund of their portion of the approximately $25 million buy-in fee. Any remaining portion of the fee has been waived. The newly signed agreements are referred to as “long-term.”
Comparisons to Overwatch League
The waiving of entry fees is a similar move to what Activision Blizzard did with the Overwatch League before its closure. However, in the case of the Overwatch League, teams did not receive refunds for previously paid entry fees.
Importance of Event Hosting
Event hosting is a crucial topic, especially considering instances where teams have been unable to host major events. Carolina was unable to host the upcoming Major Four due to various factors.
Potential Expansion Opportunities
With the removal of entry fees, there is a possibility for new teams to join the Call of Duty League.
Overall, the restructured team agreements in the Call of Duty League demonstrate a commitment to supporting franchise success and ensuring the longevity of competitive Call of Duty.