Activision Blizzard lays off esports staff as it faces potential dramatic changes for the Overwatch League

theverge.com:

Amid the final days of the Activision Blizzard / Microsoft deal, Activision Blizzard is laying off workers in its esports department while also preparing for potentially huge changes coming to the Overwatch League.

Early today, Blizzard released its second quarter earnings report, within which lies the potential fate of the Overwatch League. From the report:

During the second quarter, we amended certain terms of our collaborative arrangements with team entities participating in the Overwatch League. According to the amended terms, following the conclusion of the current Overwatch League season, the teams will vote on an updated operating agreement. If the teams do not vote to continue under an updated operating agreement, a termination fee of $6 million will be payable to each participating team entity (total fee of approximately $114 million).

This means that the fate of the league after the current season is now in the hands of team owners to be voted on sometime later this year. Though we do not yet know what the franchise owners will decide, based on the shaky financial and team developments of the last few years, we can make an educated guess.

Last year, esports journalist Jacob Wolf reported that Activision Blizzard was owed around $400 million in franchise fees from both its Overwatch and Call of Duty leagues after it postponed payments due to the widespread financial stress related to the covid-19 pandemic. Then, last month,Sports Business Journal reported that the Overwatch League waived its franchise fees, canceling a portion of the $20–35 million in fees each team paid in order to participate in the league.

Additionally, back in January, several Blizzard games including Overwatch and Hearthstone were taken