Thanks to the Activision Blizzard lawsuit, Overwatch League is dropping sponsors

**This story about the significance of sponsorship, boiled down, in 1:21 minutes.**

What's the fuss?

Thanks to the ongoing Activision Blizzard lawsuit, one of their most prominent esports leagues is losing big-name sponsors, threatening its longevity.

The situation

Activision Blizzard, the major developer currently under investigation for discrimination, operates two professional leagues: the Call of Duty League and the Overwatch League.

The latter, which has been active since 2016, has been a lasting worldwide phenomenon with backing from pro traditional sports teams and is followed by millions.
As such, the mainstream appeal of the Overwatch League has attracted mega sponsors who want to tap into esports fans's wallets.

With the bad PR Activision Blizzard has been receiving, many of these big name sponsors have been rethinking their commitment to the league.

Sponsors such as Kellogg's and T-Mobile have fully pulled out of their multi-year agreements with the league while other big sponsors such as Coca-Cola and State Farm are "reevaluating their commitments".

Boiling it down

Sponsorship is a crucial part of esports' lifeblood.

In such a young industry, marketing partnerships can bring a sense of legitimacy to both leagues and teams.
Furthermore, these deals provide valuable financial support in exchange for the activation of their brand in a usually untapped market.

Despite a strong first few years, the Overwatch League has seen drastic declines in viewership in a saturated shooter esports market.

Household name brands have great potential to attract non-endemic spectators to esports events, which has the opposite effect if these sponsors leave.
This trend is not favorable, especially with Overwatch 2 releasing some time in the future which will like be an esport in itself.

Thank you so much for reading! Please consider subscribing if you enjoy stories like this delivered directly to you every Tuesday and Friday morning!

Any and all feedback is valid and welcome.