Team Singularity slam DashThreads and terminate partnership - Dexerto
Business

Team Singularity slam DashThreads and terminate partnership

Published: 23/Oct/2020 12:10 Updated: 23/Oct/2020 12:16

by Adam Fitch

Share


Team Singularity have prematurely ended their partnership with merchandise supplier DashThreads due to “unprofessionalism.”

The Danish organization posted an announcement to explain why they were “officially parting ways” with the apparel company.

The org alleges that they were not able to produce marketing material over the past four months because products had not been delivered by DashThreads, subsequently they were not able to “execute on marketing plans.”

They stated that this wasn’t a decision made in the spur of the moment, it comes after months of trying to rectify the problems and get things on track. However, the “unprofessionalism shown by DashThreads and its CEO and owner Devin Fry” was too much to handle going forward.

Team Singularity Insight
Team Singularity
Team Singularity recently sold their player Insight to Toronto Ultra.

Team Singularity are allegedly missing more than 300 units of clothing, that they had already paid for, which were supposed to go to their players, influencers, content creators, management, and fans.

The org stated that their legal team will be taking action against DashThreads as the partnership was “one-sided” and there are further instances of mistreatment that they won’t be making public knowledge.

“I’m very sad that my worst fears prior to entering this partnership earlier this year came true and I take full responsibility for a deal that should never been made in the first place,” said Singularity CEO Atle Stehouwer. “I will not beat myself up about giving people and startups a second chance, I am just sad that DashThreads and Devin Fry decided not to rise above previous accusations and prove that it was a legit startup. Actions speak louder than words.”

DashThreads predominantly work with amateur and semi-pro esports teams and describe themselves as a “premium esports and street apparel company.”

Dexerto has contacted DashThreads for comment on Team Singularity’s statement.

Business

Activision in talks to reduce fees owed by CDL & Overwatch League teams

Published: 2/Dec/2020 22:14 Updated: 2/Dec/2020 22:35

by Theo Salaun

Share


Recent reports from The Esports Observer indicate that Activision Blizzard are in the midst of discussions to possibly reduce the amount the amount owed by Overwatch League and Call of Duty League franchises as part of their entry fees.

With all OWL and CDL plans derailed over the past year, Activision are reportedly trying to rework the hefty investments that organizations have made into their franchising opportunities. When the massive game development company pitched both leagues, neither was expected to be profitable in the short-term, but projections have taken an even greater hit due to current global restrictions.

A groundbreaking esports concept centered around the city-based model that is used in traditional sports, Activision required $20 million entry fees for the OWL’s first 12 teams and then fees in the range between $30 to $60 million for its next eight. For the CDL’s inaugural season, 12 teams needed to put up at least $25 million apiece, even more for cities that were in high-demand.

Now that the plans for local events have understandably shifted, neither league is expanding for their next season and ownership groups in both are looking for ways to save cash. As reported by The Esports Observer’s Adam Stern, this has engendered cost-cutting discussions with Activision’s latest new senior executive hire, Tony Petitti.

overwatch league 2020 event crowd
Ben Pursell For Blizzard Entertainment
One of the many avid crowds at Overwatch League events.

Petitti, formerly Major League Baseball’s deputy commissioner, was hired by Activision Blizzard CEO Bobby Kotick to a senior role involved with both of their leagues as the President of Sports and Entertainment. He joins Johanna Faries, a former National Football League executive, who brings a traditional sports perspective as the commissioner for both the CDL and OWL.

Given their experience with city-based sports leagues, Activision is likely aware of the profitability challenges that their current esport and sport investment groups are facing. As such, it should be no surprise that they are willing to have conversations about concessions that can make current projections fit closer to the original expectations.

As Stern reports, those discussions have included discounting some of the original entry fees: “one idea that is being weighed is reducing the amount of money they owe to the video game maker.” 

Call of Duty League LAN
Call of Duty League
Following in the OWL’s footsteps, the CDL also had huge enthusiasm for live events.

With Immortals Gaming Club selling their Los Angeles Call of Duty franchise to 100 Thieves and reportedly being interested in selling their OWL spot as well, many are wondering if franchise valuations have shifted.

Fortunately, it appears that the profitability projections have remained somewhat consistent despite current predicaments. As reported by Forbes’ Christina Settimi, 100 Thieves COO John Robinson would not set an exact figure on their LA Thieves purchase, but suggested that “franchise values have held up.”

Activision would likely want to avoid an exodus of owners, so these discussions to cut costs and protect brand health are reportedly ongoing.