Activision Blizzard is struggling to sign franchises

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You swing big at first, you can always come down in price. 20 million in big corp world is not the same as 20 million to normal people.

I mean lets put this in perspective, this house is for sale for 17 million in LA and one person owns it and I'm sure one person will buy it. One house... there are 37 homes over 10m in that same zip code
https://www.redfin.com/CA/Beverly-Hills/1124-Marilyn-Dr-90210/home/6822297

So lets not act like 20million is something rich investors can't get their hands on. This issue is more about the revive sharing and length of contract. If you're $$$$$ you want a return on your money, that's how you got rich in the first place. Why would investors drop 20million for revenue sharing (maybe) in 2021?

that's the greedy part of it, not the buy in the cost. The buy in cost would be ok if there was a quicker return on investment.
These sort of deals are always way more tricky with more sticking points than the raw cost.
AH HAHAHAHAHAHAHAHAHAHAHAHAHAHA, WOOOOOOOO BOI, that's some funny stuff right there! Talk about being blinded by money, this is comical!
Well, the revenue share in 4 years would mean 'we need a commitment here'. Thats all.

As you say, for the mega rich they are targetting, 20 million is not the issue.
LMAO this is some Lonzo Ball level of delusion, Overwatch carried Bobby Kotick to stratospheric levels of arrogance.
05/10/2017 03:37 PMPosted by DeadLamb
You swing big at first, you can always come down in price. 20 million in big corp world is not the same as 20 million to normal people.

I mean lets put this in perspective, this house is for sale for 17 million in LA and one person owns it and I'm sure one person will buy it. One house... there are 37 homes over 10m in that same zip code
https://www.redfin.com/CA/Beverly-Hills/1124-Marilyn-Dr-90210/home/6822297

So lets not act like 20million is something rich investors can't get their hands on. This issue is more about the revive sharing and length of contract. If you're $$$$$ you want a return on your money, that's how you got rich in the first place. Why would investors drop 20million for revenue sharing (maybe) in 2021?

that's the greedy part of it, not the buy in the cost. The buy in cost would be ok if there was a quicker return on investment.
These sort of deals are always way more tricky with more sticking points than the raw cost.


Exactly. I don't think people here understand. To put it in perspective, NFL teams cost HUNDREDS of millions, even in the billions. Yes, that includes the Cleveland Browns. I'm sure OW could get popular enough to rival the popularity of the Cleveland Browns.

This isn't for some youtubers to shell out. It's for guys who 20 million dollars is nothing. You gotta spend money to make money.
This does look like a high asking price for a franchise in the League.

For context, though, a lot of business franchises have a buy-in of about $5-10 million. So, it's not that the $20 million is excessively much, but it definitely is too much vis-a-vis the business franchise Activision Blizzard is selling for the League.

Still, I believe that we might need to look at the full contract to get all the information. A lot of people in this thread are looking at $20M for the asking price and are going " O_O WTF? " without really understanding the real relative costs for franchising in the world of business.

While $20M is definitely above what is prevalent on the market for business franchises, something around $10M is still reasonable for the industry.

Also, the 2021 deadline for revenue streaming is a bit puzzling...

And, I agree with mk8000's point about the revenue-sharing argument.
05/10/2017 03:55 PMPosted by mk8000
05/10/2017 03:37 PMPosted by DeadLamb
You swing big at first, you can always come down in price. 20 million in big corp world is not the same as 20 million to normal people.

I mean lets put this in perspective, this house is for sale for 17 million in LA and one person owns it and I'm sure one person will buy it. One house... there are 37 homes over 10m in that same zip code
https://www.redfin.com/CA/Beverly-Hills/1124-Marilyn-Dr-90210/home/6822297

So lets not act like 20million is something rich investors can't get their hands on. This issue is more about the revive sharing and length of contract. If you're $$$$$ you want a return on your money, that's how you got rich in the first place. Why would investors drop 20million for revenue sharing (maybe) in 2021?

that's the greedy part of it, not the buy in the cost. The buy in cost would be ok if there was a quicker return on investment.
These sort of deals are always way more tricky with more sticking points than the raw cost.


Exactly. I don't think people here understand. To put it in perspective, NFL teams cost HUNDREDS of millions, even in the billions. Yes, that includes the Cleveland Browns. I'm sure OW could get popular enough to rival the popularity of the Cleveland Browns.

This isn't for some youtubers to shell out. It's for guys who 20 million dollars is nothing. You gotta spend money to make money.


Oh I dont think an NFL franchise sells for less than 2 billion right now.
05/10/2017 03:56 PMPosted by XecutorAdun
This does look like a high asking price for a franchise in the League.

For context, though, a lot of business franchises have a buy-in of about $5-10 million. So, it's not that the $20 million is excessively much, but it definitely is too much vis-a-vis the business franchise Activision Blizzard is selling for the League.

Still, I believe that we might need to look at the full contract to get all the information. A lot of people in this thread are looking at $20M for the asking price and are going " O_O WTF? " without really understanding the real relative costs for franchising in the world of business.

While $20M is definitely above what is prevalent on the market for business franchises, something around $10M is still reasonable for the industry.


Did you read the link? It says that the current big e-sport has a 1.8 million buy in. Blizzard's own buy in is more than ten times the cost, and when Overwatch isn't exactly doing so hot as an e-sport. It's greed coupled with a bit of insanity to even attempt something like this.
05/10/2017 03:59 PMPosted by Cerebrum123
05/10/2017 03:56 PMPosted by XecutorAdun
This does look like a high asking price for a franchise in the League.

For context, though, a lot of business franchises have a buy-in of about $5-10 million. So, it's not that the $20 million is excessively much, but it definitely is too much vis-a-vis the business franchise Activision Blizzard is selling for the League.

Still, I believe that we might need to look at the full contract to get all the information. A lot of people in this thread are looking at $20M for the asking price and are going " O_O WTF? " without really understanding the real relative costs for franchising in the world of business.

While $20M is definitely above what is prevalent on the market for business franchises, something around $10M is still reasonable for the industry.


Did you read the link? It says that the current big e-sport has a 1.8 million buy in. Blizzard's own buy in is more than ten times the cost, and when Overwatch isn't exactly doing so hot as an e-sport. It's greed coupled with a bit of insanity to even attempt something like this.
Sure, which is why I mentioned the $5M-10M range for a franchise buy-in for ANY business.

LoL being the biggest esport game with a $1.8M buy-in could just be its conservative price because it is still a relatively newer company compared to Activision Blizzard, so their negotiations are probably limited by that too. That said, Blizzard's stance is definitely too aggressive.
with prices escalating from there in larger markets such as New York and Los Angeles.


$20 million is the starting price, it's higher in denser markets.
This is hilarious.
The main problem is they're trying to Sprint when they can barely crawl.
05/10/2017 03:33 PMPosted by mk8000
You're underestimating how popular esports already are. Hundreds of millions of viewers for big events. And Overwatch is one of the most popular games in years. They're taking a big gamble yes but that's the only way to make history.

"Genius is insanity right up until it works" - Forrest Griffin


Its new, not necessarily popular. Theres a difference. OW is still to young to be seen if its a popular long lasting game or a fad at this point.

And Esports does have millons of viewers, but it doesnt even compete with the NFL, NBA, or other major league organizations in the US. It doesnt even come close to competing with FIFA either, as far as I can tell.

Again, theyre forcing the issue. Create a high buy in which established teams with established fan bases cant afford or dont want to afford, in an attempt to corporatize esports early. Theyre dealing with a medium that is struggling for a space that pre-existing franchises dominate (NFL or FIFA), and a medium that is in severe flux. Games come and go in years, seasons are in weeks to a few months, and the rules change constantly. Theyre pushing to hard. Even league took years before it became an esports juggernaught. And theyre still not mainstream like big sports franchises.

And going back to my long !@# earlier post, teh trend of some dudes playing a game that gets popular is still happening EVEN IN ESPORTs. SC, DOTA, LoL, and every other esport thus far whcih has any reputation still began as just a bunch of casuals who got good and people wanted to pay to watch them play.

OW isnt there yet, and esports isnt that big yet for this kind of dealing. Theyre pushing to hard.
I've got flashback about the SC2 faillure and the KeSPA...

I need Counseling
lol a lot of people who commented here thought that it takes $20m to enter the tournament. what a bunch of d**bas**s.
05/10/2017 03:37 PMPosted by DeadLamb
So lets not act like 20million is something rich investors can't get their hands on. This issue is more about the revive sharing and length of contract.


It is likely the major sticking point though. Yes, investors have no problem getting their hands on that kind of money, but that kind of opt in price isn't going to have a good ROI.

The same article said that League of Legends sold for 1.8 Million last year. Even if you assume that Overwatch would blow them out of the water, the disparity is insane. Maybe, MAYBE you could swing a couple deals at 5 Million with that kind of belief.

Nobody is going to pop 20 Million on a sport that has a going rate of 1.8 Million for a premium- regardless of terms.
bump for good discussion
I eat happy egg co eggs coz those birds are free. I don't own an OWL team coz that's definitely not free.
Why the hell would Activision Blizzard do this?

Surely they understand that more exposure of their game, including a pro scene, does nothing but help their sales in the long run.

They could certainly learn a thing or two from Riot Games in respect to running a Pro League.
Ok, the aim of this league is to surpass what esports is and get the cash that's involved in the big sports leagues involved so it has more brand power to attract more viewers from outside the esports fan base. If the New York Yankees have a OWL team you can bet it will get the attention of a large part of the Yankees fans to notice it. With the power of advertisements and brand loyalty they expect to bring those fans to the OWL and become a multi million dollar league not just another esports league that everyone on here and reddit seem to expect/want. They have to have the high entry fee to make sure it's only serious spenders that get involved and not the little orgs that run the current esports teams. If this pays off it's good for every esport, the small orgs that are already established, players and fans as a whole as it will bring them to the mainstream attention with tv coverage and a lot of other stuff.
They need to lower the price by a lot

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