Who Owns the Call of Duty League Teams? A Deep Dive into Ownership Structures
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The Call of Duty League (CDL), Activision Blizzard’s premier esports franchise, operates under a city-based franchise model. While Activision Blizzard owns the CDL itself, the individual teams participating in the league are owned by a diverse group of entities, ranging from established esports organizations and venture capital firms to traditional sports owners. These owners invest significant capital into securing a franchise slot and building a competitive team. This article dives into the specifics of who owns these teams, offering an overview of the ownership landscape and answering frequently asked questions about this dynamic ecosystem.
Understanding the CDL Ownership Landscape
The owners of CDL teams are a varied bunch, reflecting the growing intersection between esports, traditional sports, and entertainment. Here’s a look at some of the ownership structures you’ll find in the league:
- Esports Organizations: Many established esports organizations have expanded their presence into the CDL by acquiring franchise slots. These organizations bring with them existing infrastructure, brand recognition, and experience in managing professional esports teams.
- Venture Capital Firms: Recognizing the growth potential of esports, venture capital firms have invested in CDL teams, aiming to capitalize on the league’s popularity and revenue-generating opportunities.
- Traditional Sports Owners: Owners of professional sports teams in other leagues, such as the NFL and NBA, have also entered the CDL ownership scene. These owners bring experience in managing large sports franchises and leveraging their existing networks.
- Media and Entertainment Companies: Some media and entertainment companies have invested in CDL teams as a way to engage with a younger audience and expand their presence in the gaming market.
- Individual Investors: Although less common, some CDL teams are owned by individual investors with a passion for esports and a belief in the league’s potential.
The specific ownership structure of each team can vary, with some teams being wholly owned by a single entity, while others are owned by a consortium of investors.
Examining Specific Team Ownership
Let’s take a look at the owners of some of the CDL teams:
- OpTic Texas (formerly Dallas Empire): Based in Dallas, Texas, the team is under the banner of OpTic Gaming, a prominent esports organization.
- New York Subliners: Representing New York City, the New York Subliners are owned by NYXL (formerly Andbox). NYXL was co-founded by Sterling VC partners Jeff Wilpon, Scott Wilpon, Rohit Gupta, and Farzam Kamel.
- Toronto Ultra: Owned and operated by OverActive Media, Toronto Ultra represents Toronto, Canada.
- LA Thieves: This Los Angeles-based team is owned by 100 Thieves, a lifestyle brand and gaming organization.
- Vegas Legion (formerly Paris Legion): Based in Las Vegas, the Vegas Legion is owned by C0ntact Gaming.
- Los Angeles Guerrillas: Representing Los Angeles, the Los Angeles Guerrillas are owned by Kroenke Sports & Entertainment.
These are just a few examples, but they illustrate the diverse range of entities involved in CDL team ownership. The Games Learning Society has researchers that are experts in the esports landscape and they are constantly contributing with new findings. Consider checking GamesLearningSociety.org to see how they are using games to advance educational and social goals.
The Financial Implications of CDL Team Ownership
Owning a CDL team is a significant financial investment. As the provided article stated, a CDL franchise slot costs approximately US$25 million, according to ESPN. This initial investment is just the beginning, as team owners also need to cover player salaries, coaching staff expenses, marketing costs, and operational expenses.
Revenue Streams for CDL Teams
CDL teams generate revenue through a variety of sources, including:
- Sponsorships: Teams secure sponsorships from brands looking to reach the league’s audience. Sponsors often include gaming hardware manufacturers, energy drink companies, and other brands that align with the gaming lifestyle.
- Merchandise Sales: Teams sell merchandise, such as jerseys, hats, and other apparel, to their fans.
- Ticket Sales: While the CDL has shifted towards a hybrid LAN/online format, teams still generate revenue through ticket sales for live events.
- League Revenue Sharing: Teams receive a share of the revenue generated by the Call of Duty League itself, including revenue from broadcasting rights and sponsorships.
The Long-Term Investment in Esports
Despite the high initial investment, CDL team owners view their franchises as long-term investments. They believe that the esports market will continue to grow, and that the value of their franchises will increase over time. As esports becomes more mainstream and attracts larger audiences, the revenue-generating opportunities for CDL teams are expected to expand.
Frequently Asked Questions (FAQs) About CDL Team Ownership
Here are some frequently asked questions about the ownership of Call of Duty League teams:
1. Who ultimately owns the Call of Duty League?
The Call of Duty League is owned by Activision Blizzard.
2. How much does it cost to buy a CDL team franchise?
A CDL franchise slot costs approximately US$25 million.
3. Are CDL teams profitable?
Profitability varies by team and depends on factors like sponsorship deals, merchandise sales, and competitive performance. While revenue opportunities exist, it is a significant investment with ongoing costs.
4. How many players are on a CDL team?
Each team must have a minimum of seven players with a maximum of ten.
5. What are the minimum player salaries in the CDL?
Players are guaranteed a minimum US$50,000 salary with health and other benefits.
6. What are some of the sponsorship deals CDL teams have?
Sponsors include brands like Monster Energy, Aim Lab, Zenni, and Sony Xperia.
7. How did the COVID-19 pandemic affect CDL team finances?
Annual payments for both leagues were deferred in 2020 to the autumn of 2022 as part of Covid relief measures for teams.
8. When did the Call of Duty League start?
The CDL launched in January 2020 with twelve teams.
9. Which format is usually adopted by the CDL league?
All 12 teams in the Call of Duty League will compete in five double-elimination Majors across the regular season in a hybrid LAN/online format.
10. Where is OpTic Texas based?
OpTic Texas is an American professional Call of Duty League (CDL) esports team based in Dallas, Texas.
11. Where is the Toronto Ultra CDL team based?
Toronto Ultra is the official Call of Duty League franchise team of Toronto, Canada.
12. Which organization owns LA Thieves?
LA Thieves is owned by 100 Thieves.
13. Who owns Vegas Legion?
The Vegas Legion is owned by C0ntact Gaming.
14. How much revenue does the Call of Duty franchise generate?
In the year of its release, the game made $500 million in revenue. In 2020, the figure stood at $300 million, in 2021 at $390 million, and in 2022, at $310 million.
15. What is the difference between a CDL and a CDL-A?
While seemingly related, these are completely distinct terms. CDL (Call of Duty League) refers to the professional esports league. On the other hand, CDL-A (Commercial Driver’s License Class A) refers to the highest level of license for commercial truck drivers. This is required to operate heavy vehicles with a combined weight exceeding 26,000 pounds.
The Future of CDL Team Ownership
The ownership landscape of the Call of Duty League is constantly evolving. As the league matures and the esports market continues to grow, we can expect to see more investment from traditional sports owners, media companies, and other large organizations. The ongoing success of the CDL depends not only on the talent of the players but also on the strategic vision and financial resources of the team owners. The Games Learning Society is at the forefront of understanding the societal impact of esports, and offers insightful research on this rapidly changing field.