Curated News
By: NewsRamp Editorial Staff
April 18, 2024

Activision's Landmark Deal Boosts Esports Team Revenue

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Original Source

TLDR

  • Teams in the Call of Duty League will experience a significant boost in revenue streams.
  • The updated agreement promises the elimination of outstanding entry fees and increased earnings from in-game merchandise sales.
  • The bold move of eliminating outstanding entry fees injects much-needed capital back into the League, benefitting the teams.
  • Riot Games unveiled a new partnership model for professional teams in the LCS, LEC, and LCK leagues, inspired by the successful VALORANT Champions Tour.

Impact - Why it Matters

The news of the landmark revenue deal between Microsoft's Activision Blizzard, the Call of Duty League, and various esports teams, including OverActive Media, is important for both the esports and gaming industries. The deal promises to inject much-needed capital back into the League, eliminate entry fees, and increase revenue streams for teams, providing them with more financial stability and peace of mind. This shift in the profit-sharing model also sets a precedent for other game developers to follow suit, ultimately impacting the financial well-being of professional esports teams and the overall esports landscape.

Summary

Microsoft’s Activision Blizzard just unveiled a landmark revenue deal for the Call of Duty League (CDL), creating a buzz across the entire esports landscape. The updated agreement promises a dynamic shift in the esports landscape, starting with the elimination of outstanding entry fees. Teams are set to experience a significant boost in revenue streams with increased earnings from sales of in-game merchandise, including Team bundles and the highly coveted Champs bundle. Activision Blizzard isn’t the only game developer making much-needed adjustments to its profit-sharing model, as Riot Games recently unveiled a new partnership model for professional teams in the LCS, LEC, and LCK leagues. Under the new model, teams will receive a fixed stipend and share in revenue generated from LoL Esports digital content sales, facilitated by a Global Revenue Pool (GRP).

Source Statement

This curated news summary relied on content disributed by News Direct. Read the original source here, Activision's Landmark Deal Boosts Esports Team Revenue

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