The Overwatch Champions Series, the new competitive platform for Overwatch 2, has introduced specific rules regarding team sponsorships. Operated by ESL FACEIT Group, the league unveiled its official rulebook last Wednesday, stipulating that participating teams cannot engage with sponsors associated with cryptocurrencies, NFTs, and artificial intelligence/machine learning.

This decision follows the recent challenges faced by the Overwatch League, where pandemic-related issues and economic strains among participating teams resulted in the collapse of the high-profile franchise competition by Activision Blizzard.

Overwatch Champions Series

Blizzard Entertainment, makers of the massive free-to-play first-person shooter Overwatch 2, and ESL FACEIT Group, the leading esports and video game entertainment company, only just announced last week a multi-year agreement that will bring the next chapter of the game’s esports to life through the Overwatch Champions Series (OWCS).

The OWCS offers an esports circuit that is open, always-on, and global, marking a historic new chapter for Blizzard's first-person shooter. The international competition circuit is open to players across North America; Europe, the Middle East, North Africa (EMEA); and Asia.

“A thriving esports scene is important to a game as competitive as Overwatch 2, and we’re very excited to be entering this next era for the franchise with EFG,” said Jared Neuss, Executive Producer of Overwatch 2.

In addition to establishing EFG as the premier operator of the OWCS, the deal enables Blizzard Entertainment to take advantage of EFG’s full suite of properties to create an open, inclusive, and sustainable competitive community.

James Fudge, editor of The Esports Advocate, highlighted the league's position, emphasizing the explicit restriction on sponsorships tied to cryptocurrencies, NFTs, and artificial intelligence/machine learning technologies.

This development occurs against the backdrop of the enduring connection between the esports and cryptocurrency sectors. Significant sponsorships from crypto companies, such as FTX's 10-year, $210 million naming rights deal with Team SoloMid (TSM), have been notable. FTX also secured a seven-year sponsorship agreement with Riot Games for the League of Legends Championship Series (LCS) in the United States, valued at nearly $100 million.

However, the frequency of such high-value deals decreased following the collapse of FTX in late 2022. Analysts attribute this decline to the broader downturn in the cryptocurrency market throughout 2023 and speculate on a sense of caution among esports organizations, despite economic challenges in the gaming industry.

The Overwatch Champions Series' decision to limit crypto, NFT, and AI sponsors reflects a practical approach within the esports community. It underscores the evolving landscape of sponsorships amidst industry shifts and market uncertainties. As the league positions itself as a revitalized platform for competitive Overwatch, its measured stance on sponsors adds a pragmatic layer to the unfolding narrative of esports partnerships in 2024.