Teams Vote to Exit Overwatch League

Key insights

5 takeaways

01
A majority of Overwatch League (OWL) franchisees have voted to exit the league, effectively ending the current franchised model.
02
The dissolution of the league required a two-thirds majority vote from franchisees, who are eligible for a $6 million USD exit payout per team.
03
OverActive Media confirmed that the Team Participation Agreements (TPAs) for the league have been officially terminated.
04
While the franchised league is ending, Activision Blizzard plans to continue its esports operations through a "revitalized" program starting in 2024.
05
Reports suggest that Activision Blizzard is in discussions with a third-party tournament operator to manage future Overwatch esports, though no formal agreements have been finalized.

Summary

The Overwatch League has reached a critical turning point as a majority of its franchise teams have voted to exit the league. This decision marks the formal conclusion of the league’s existing franchised structure. The dissolution process required a two-thirds majority vote from the participating teams, which triggers a previously established payout of $6 million USD per team upon the termination of their respective Team Participation Agreements.

While the vote confirms the end of the current operational model, the transition process remains ongoing. Not all franchisees have finalized the necessary paperwork to complete their exit from the league. Despite the cessation of the franchised league, Activision Blizzard has indicated plans to pivot toward a revitalized esports program for the Overwatch franchise. The company has not yet confirmed details regarding future operations, though industry reports suggest that a third-party tournament operator may manage competitive play for the 2024 season.

This development reflects a significant shift in the professional esports landscape, specifically regarding the sustainability of high-cost, franchised league models. Activision Blizzard has maintained a neutral stance on the specifics of the negotiations, focusing instead on the conclusion of the 2023 season and the development of a new vision for the game’s competitive future. As of November 2023, no formal agreements with external tournament organizers have been finalized.