Franchise Fees for Overwatch eSports Teams Could Soar
*By Christian Smith*
Franchise fees to get into season three of the Overwatch League could reach $100 million dollars for investors that don't make the cut for season two.
That's according to eSports expert Rod Breslau, better known as "Slasher" in the gaming community.
"There is a fear of missing out," Breslau said in an interview Friday with Cheddar. "So I think a lot of these big brands and sports teams in North America and in Europe are going to want to get in now."
The 12 teams that played in the inaugural season, which kicked off last December, only had to pay $20 million to Activision Blizzard, the company that created Overwatch.
But the cost of entry for *new teams* has spiked along with interest in the game. Overwatch League averages 80,000 to 170,000 concurrent viewers on streaming platform Twitch, and it's brought in $150 million in sponsorship and broadcasting rights deals.
[ESPN first reported](http://www.espn.com/esports/story/_/id/23464637/overwatch-league-expansion-slots-expected-30-60-million) that new teams will have to pay between $30 and $60 million in fees for season two, numbers Breslau says his sources confirmed.
The Overwatch League announced on Wednesday that it will host the debut season's Grand Finals at the Barclays Center in Brooklyn, NY from July 27-28.
Some serious cash is on the line at the championship event. The winning team will receive a $1 million bonus - with nine to 12 players on each team, that works out to a haul of upwards of $100,000 each, in one weekend. The runner-up gets a cash boost of $400,000, and the third and fourth place teams will each haul in an extra $100,000.
For anyone new to the world of eSports, Overwatch is a first-person shooter game that was released on May 24, 2016 by Blizzard Entertainment, the same company behind the popular World of Warcraft franchise. Two teams of six players face off in a robot-filled, near-future Earth. Overwatch League teams are allowed to have six additional players that can be swapped between matches.
The Overwatch League is currently comprised of 12 teams - nine American ones (Boston, Dallas, Florida, Houston, New York City, Philadelphia, San Francisco, and two from Los Angeles) and three international (London, Seoul, and Shanghai). Teams are split between the Atlantic and Pacific divisions. Players make a minimum base salary of $50,000, receive housing during the season, healthcare coverage, and a retirement savings plan according to the [Overwatch League's website](https://overwatchleague.com/en-us/about).
The top six teams this season will go head-to-head in the Grand Finals at the Barclays Center. Breslau says he's confident that New York's team will bring home the first-ever Overwatch League trophy.
"New York Excel champions season one, no problem. They're going to beat, I would say, the London team in the finals," Breslau said.
For the full interview, [click here](https://cheddar.com/videos/barclays-center-to-host-first-ever-overwatch-league-grand-finals).
Melissa Gonzalez, CEO and Founder of The Lionesque Group, joins Cheddar News' Closing Bell, where she explains why she feels mixed about the Walmart's new initiative and what will make mass adoption of this offering difficult.
Exercise equipment maker Peloton is attempting to run away from a recent bout of controversy. CEO John Foley published an open letter to employees on Thursday after reports that said Peloton was pausing production of its Bike and Tread products, delaying the opening of a new U.S. factory, and considering job cuts. In the letter, Foley wrote that the information in the reports was 'incomplete,' 'out of context,' and not reflective of Peloton's strategy. Peloton's stock responded on Friday, with shares bouncing back after falling nearly 24% in the regular session on Thursday. CFRA Research's Director of Research Ken Leon joined Cheddar News' Closing Bell to discuss.
Home essentials maker Outlines announced its launch at the beginning of 2022, along with $1 million in pre-seed funding led by Social Impact Capital. Outlines says it is re-imagining how we keep our homes clean while also reducing plastic waste. The company's debut product, the Shower Liner System, is made of long-lasting materials, including easy-to-recycle plastic. Outlines co-founder and CEO Luke Young and co-founder and COO Megan Ceryanec joined Cheddar News' Closing Bell to discuss.
eToro, the social trading platform that offers crypto, forex, and equities, recently announced that it's giving U.S. users the option to include stocks and ETFs as part of their investment portfolios. Lule Demmissie, CEO of eToro U.S., joined Cheddar to talk about the company’s expanded offerings. "We felt, although crypto is a fantastic asset class, that individuals benefit from having a broader access to different kinds of investments, and equities is definitely one of them," Demmissie noted.
Coming off of CES, Blink Charging announced a partnership with legacy automaker General Motors to provide charging stations for its newest electric cars. The company specializes in stations they own and operate that also accommodate residential and commercial locations. Michael D. Farkas, founder and CEO, noted that they "don’t discriminate” when it comes to locating their chargers while also taking the philosophy of seeing their hardware more like hot water heaters rather than smartphones constantly in need of upgrading. "We believe it's one of the reasons why we were selected by GM," Farkas said. "These dealerships have to invest in these locations and make sure that this hardware is workable for a very, very long period of time."
Simeon Siegel, managing director and senior analyst at BMO Capital Markets joins Cheddar News to discuss CNBC's report that Peloton plans to halt production, despite the company's CEO denying those claims.
Jackie Rotman, founder and CEO of the Center for Intimacy Justice joins Cheddar News to talk about why Facebook is banning ads by companies targeting women's sexual health but not ads catered to men.
