Overwatch: The Gold Mine

“We didn’t lose the game; we just ran out of time.”
Vince Lombardi

Overwatch: the Gold Mine

I’m no reporter. MMO Champs wrote about an ESPN article.

ESPN has an article stating that Blizzard is struggling to sign franchises for the Overwatch league due to unfavorable terms. Blizzard released a statement to say that things are going well and someone may be trying to spread misinformation for bargaining reasons.

  • There is a $20 million franchise fee
  • Teams are not guaranteed revenue sharing until after 2021 and only if Blizzard meets certain criteria
  • If a team sells its spot to another party, the league would receive 25 percent of the proceeds

Multiple sources said Blizzard is asking for a $20 million franchise fee for the league featuring its popular 2016 game, with prices escalating from there in larger markets such as New York and Los Angeles. However, following the $20 million buy-in, teams are not guaranteed revenue sharing until after 2021 and only if Blizzard meets certain criteria that sources did not disclose to ESPN.

A lot has been written about E-Sports and Overwatch. I believe Forbes Magazine had a write-up over a year ago. And I believe that Blizzard is working with China and probably South Korea –this should be a big deal.

One of my favorite authors, Louis L’Amour, wrote a fictional western about a cowboy who discovers a mine in the mountains. Down in the valley below the mountain, he lays out a town. He puts down stakes and runs string to design the lots and the road.

Some cowboys come riding by and ask him what the hell is he doing? This is crazy. He tells them that he found some gold flake in the nearby stream and that with so many people soon to be coming, he decided to sell lots to the town.

One lesson learned is that during the Gold Rush in the Old West, a lot of people came to strike it rich but the smart ones came with shovels and picks and Levis and gloves and pans to sell to the miners. Those are the guys who made the sure money.

E-Sports is the gold rush.
Overwatch is the gold mine.

There will be a ton of money to be made for accessories like fan apps, fantasy sports, odds makers, websites dedicated to the teams and players. Maybe even sports apparel.

Even if a franchise sucks, it can make a lot of money via marketing and gambling.

Remember, the NFL had two terrible teams with losing records playing each other and it got a higher televison rating than a World Series baseball game the same night. This is because of Fantasy Football; it didn’t matter about the team winning it was about the individual stats. Seriously, two inept teams who were not worth watching.

Personally I have little interest in e-sports but the smart guys, the money guys, say that it will be big, Big, BIG.

If I had an extra one hundred dollars, I’d invest in the Official Sponsor now.

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