CDL teams could ask for outstanding franchise fees to be waived, according to report
After OWL franchises that had not paid their full franchise fees had the outstanding amounts rescinded, CDL teams may be asking for the same deal.
In 2020, Activision Blizzard took the unprecedented step of allowing teams in their Overwatch and Call of Duty leagues to stop payments towards their franchise fees. The understanding and assumption was that the payments would resume when things went back to normal.
But, on June 5, 2023, the developer reached an agreement with the Toronto Defiant of the OWL to rescind all outstanding payments towards the franchises’ outstanding fees. According to the Sports Business Journal, Activision Blizzard has reached a similar agreement with the remaining Overwatch League teams.
Now, having seen OWL teams getting a break on those high entry fees, CDL teams are requesting a similar deal to that offered to their Overwatch counterparts.
CDL teams look for break on franchise fees
According to a report from the Sports Business Journal, “Sources have come forward stating that teams in the Call of Duty League may ask Activision Blizzard for the same deal as its Overwatch League counterparts.”
And that deal seems to be a strong possibility of happening, the report continues, provided that Activision Blizzard gets its finances straight ahead of the upcoming Microsoft acquisition.
While the teams in the Overwatch League each agreed to pay a $20 million fee to join the league, CDL franchise spots were estimated to cost $25 million.
SBJ’s report stated that “OWL teams still owed anywhere between $6 and $7.5 million,” which was the amount rescinded for the teams. However, that number has not been confirmed by Activision Blizzard, the Overwatch League, or any teams.
Cancelling outstanding franchise costs for CDL teams could end up costing Activision Blizzard millions, but it might be worth it to maintain the league’s stability.