Publicly-traded esports organization OverActive Media (TSXV: OAM, OTCQB: OAMCF) announced Monday an agreement with Activision Blizzard’s Overwatch League that will eliminate any “outstanding entry fees,” and a sponsorship deal between OWL and Toronto Defiant.
Further, OAM said in its announcement that the new agreement also included an “early payment of league revenue share.” The company said that—including the early payment, the elimination of entry fees, and the sponsorship agreement—the deal is valued at $10.8M CAD, or $8.04M USD. Most of this deal will be recorded in FY 2023.
Additionally, OAM shared that as part of its collaboration with the Overwatch League, both parties will explore further changes to the league’s business plan.
It is an open secret that franchised teams throughout the world have struggled to pay franchise fees to the league—as noted in this report from Jacob Wolf last year—so it looks like Activision Blizzard is moving towards forgiving debt accrued by teams. One would assume if OWL is eliminating OAM’s debt it is probably doing the same for all the other teams in the league.
