n a move away from previous trends, Blizzard’s latest venture in the esports arena, the Overwatch Champions Series, has firmly decided against involving sponsors from the cryptocurrency, NFT, and artificial intelligence sectors. This decision marks a clear shift in direction for the newly established league, which is building its foundation on the widely acclaimed game, Overwatch 2, transitioning from the prior Overwatch League that faced challenges and eventually ceased operations last year due to the pandemic and financial difficulties facing teams.
The league, which is now managed by the renowned esports organizer, ESL FACEIT Group, aims to introduce a more inclusive competitive environment. However, it has taken a decisive stance by excluding sponsorship from companies involved in cryptocurrencies, NFTs, and AI/machine learning, as detailed in its official rulebook released last Wednesday.
This policy emerges amidst the backdrop of the esports industry’s previous embrace of cryptocurrency sponsorships. Such partnerships were once prevalent, with notable examples including FTX’s significant sponsorship deals. FTX had agreements with Team SoloMid, amounting to a 10-year, $210 million naming rights deal, and a seven-year sponsorship with Riot Games for the League of Legends Championship Series, valued at nearly $100 million. These high-profile collaborations highlighted the strong connections between esports and cryptocurrency firms.
However, the landscape changed dramatically following the collapse of FTX in 2022, leading to a noticeable decrease in similar sponsorship deals. This reduction reflects not only the downturn in the cryptocurrency market throughout 2023 but also a growing caution within the esports industry towards such partnerships. The decision by the Overwatch Champions Series to exclude crypto and AI sponsors aligns with this new cautious approach, as the industry seeks stability and integrity in its sponsorship agreements.