OverActive Media (TSXV: OAM) (OTC: OAMCF), a global esports and entertainment company, announced yesterday that it has secured a new long-term partnership agreement with Riot Games. This agreement ensures OverActive’s continued participation in the League of Legends EMEA Championship (LEC), Europe’s premier esports league, and eliminates $2 million in franchise payables previously due in 2025.
Solidifying Market Position
Originally awarded an LEC franchise in 2018, OverActive Media’s renewed partnership with Riot Games strengthens its foothold in one of the most prestigious and competitive esports leagues globally. The LEC is renowned for its high viewership and strong fan engagement, making it a crucial platform for esports organizations seeking to enhance their brand and reach.
“With this agreement, we have eliminated all future franchise obligations from our balance sheet and now own 100% of our franchises without any associated liabilities,” said Adam Adamou, CEO of OverActive Media. “This long-term partnership with Riot Games reaffirms our commitment to the League of Legends EMEA Championship and strengthens our strategic position in esports.”
Unlocking New Revenue Streams
The new agreement opens up multiple avenues for revenue generation:
- Expanded Sponsorship Opportunities: OverActive will have enhanced access to Riot Games’ global network of media and sponsorship partners, allowing for increased collaboration and sponsorship deals.
- Merchandise Sales and In-Game Purchases: The partnership paves the way for new merchandise lines and in-game content, tapping into the loyal fan base of League of Legends.
- Media Rights: OverActive can leverage media rights more effectively, potentially leading to new broadcasting deals and content creation opportunities.
These revenue streams are expected to bolster OverActive’s financial performance and provide a stronger foundation for long-term growth.
Financial Benefits and Strategic Advantages
A significant highlight of the agreement is the elimination of $2 million in franchise fees that were previously due in 2025. This reduction in financial obligations enhances OverActive’s balance sheet and provides greater financial flexibility.
“This provides OverActive with a stronger financial footing while preserving the franchised league structure,” Adamou noted. “We are excited to deepen our connection with fans and partners through our continued participation in the LEC, as we focus on delivering sustainable, long-term value for our shareholders.”