Call of Duty League Shares More With Teams

Major changes that benefit Call of Duty League teams revealed

Tsay opened by saying that the league has learned about the ups and downs of the esports business and has made adjustments in the face of serious challenges including COVID:

“Over the past five seasons, the Call of Duty League and its Teams have learned a great deal about the evolving business model of esports and its challenges. We have taken these learnings and together with our CDL teams, made changes to create a stronger, more sustainable league. In the past, the League implemented various solutions to alleviate some of the challenges for Teams. These include providing financial relief during COVID-19 to fund player salaries and benefits, pausing franchise fee payments, providing funding for team-hosted events, guaranteeing revenue to teams and creating in-game Team bundles.”

While noting that the popularity of CDL continues to grow, Tsay said that Activision Blizzard recognizes that teams continue to face financial challenges, and therefore the league will make a number of significant changes to alleviate some of those pressures.

Those changes include eliminating any outstanding franchise fees, the return/repayment of any previous fees to teams, and the removal of this obligation in the foreseeable future.

Tsay also said that teams will “earn increased revenue tied to the sale of their in-game merchandise (e.g., Team bundles) and now, the Champs bundle as well.” Specific details on the breakdown of what teams will now receive were not revealed.

Subsidies to host large-scale events such as Majors, Opens, and Champs, will also be increased. Finally, Tsay announced that teams will receive a “two-year minimum guarantee of revenue so they can continue investing into the Call of Duty League with more peace of mind.”

“I want to thank our Teams for the discussions we had to make these changes a reality and look forward to continuing that tight partnership,” Tsay said, in closing. “We know this is an ever-changing esports environment, but together with our Teams, we remain committed to delivering the ultimate fan experience to the CDL community.”

It is unclear if the lawsuit filed by retired Call of Duty professional player Seth “Scump” Abner and OpTic Gaming founder Hector “H3CZ” Rodriguez in February had an impact on these changes. Abner and Rodriguez alleged in their lawsuit that Activision Blizzard was operating a “100% monopoly” on Call of Duty esports with its Call of Duty League, which has caused financial harm to team owners and professional players.