Call of Duty League Eliminates Entry Fees and Bolsters Financial Support for Teams

Call of Duty League Eliminates Entry Fees and Bolsters Financial Support for Teams

23. April 2024 by Valentin Pasetti

Activision has announced a series of significant changes to the structure of the Call of Duty League (CDL) this week, aimed at enhancing the financial sustainability of participating teams.

Elimination of Entry Fees

Daniel Tsay, General Manager of COD Esports, highlighted the removal of team entry fees as one of the key modifications.

Elimination of Entry Fees:

  • Pending entry fees will be waived, with any previously collected fees refunded in full.
  • OverActive Media, owner of the Toronto Ultra franchise, disclosed a remaining entry fee of $25.5 million, with an additional one-time payment of $2 million following this announcement.

Call of Duty League

Evolving Business Model

Tsay emphasized that these changes align with the evolving esports business model and its challenges.

Adapting to Challenges:

  • The CDL implemented various solutions in the past to alleviate team challenges, including financial relief during COVID-19, franchise fee payment pauses, and event funding.

Increased Revenue Streams

Teams will benefit from enhanced revenues linked to in-game merchandise sales, although specific details have not yet been disclosed.

In-Game Merchandise Revenue:

  • Teams will generate increased revenues from in-game merchandising, including team packages and the Champions Pack. webp to jpg 1

Financial Guarantees and Event Subsidies

All teams will receive a minimum revenue guarantee for two years, while event subsidies for in-person events like Majors, Opens, and Champs will be increased.

Financial Guarantees:

  • Teams will receive a two-year minimum revenue guarantee to support continued investment in the Call of Duty League.
  • Event subsidies for in-person events will be augmented due to the growing number of LAN events in the post-pandemic era.

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The Call of Duty League’s strategic shifts towards financial sustainability and increased support for participating teams reflect Activision’s commitment to fostering a prosperous future for the esports community.

By eliminating entry fees, enhancing revenue streams, and providing financial guarantees, the CDL aims to propel the league forward while empowering teams to thrive.