Overwatch League teams initiated a collective bargaining process, seeking financial assistance to address operating costs and viewership challenges.
The teams enlisted the representation of British law firm Sheridans to negotiate with Activision Blizzard.
This collective bargaining process led to the agreement between OverActive Media, the owner of the Toronto Defiant, and the Overwatch League.
Teams could sign players for a minimum of one season and could add an option to extend that contract for an additional year if they chose to do so.
However, after the announcement that Blizzard's licensing agreement with NetEase in China would expire on January 23, 2023, the league delayed the beginning of free agency to December 2, 2022.
[12] Due to Blizzard's licensing agreement with NetEase in China ending, which resulted in the four Chinese OWL teams not being legally allowed to play Overwatch 2 in their country, the East Region expanded to allow Contenders teams to compete in the OWL.
The Spring stage began with opens, where Overwatch Contenders teams competed to play in the OWL.
[1] Source: Overwatch League The Midseason Madness was a double elimination tournament that was the culmination of the Spring Stage and featured six teams — four from the West and two from the East.
All matches in the Grand Finals bracket were held on October 1, and the winner was crowned the 2023 Overwatch League champion, receiving a trophy and a prize of US$1 million.
[18] Source:[22] According to esports journalist Jacob Wolf, Overwatch League teams retained British law firm Sheridans to start a collective bargaining process against the league, in an attempt to receive financial assistance after several years of high operating costs and low viewership.
OverActive Media, the owners of the Toronto Defiant, was leading this collective bargaining effort, as reported by Wolf.
[25] It was later confirmed by Sports Business Journal that this waiver of outstanding entry fees applied to the entire Overwatch League, not just the Toronto Defiant.
With the termination of the agreement, all Activision Blizzard titles that were operated by NetEase, which includes Overwatch 2, went offline in China.
This resulted in the four Chinese Overwatch League teams — Chengdu Hunters, Guangzhou Charge, Shanghai Dragons (owned by NetEase), and Hangzhou Spark — no longer being able to play in their home country.
[27] Additionally, competitions related to unapproved games in China are not allowed to be broadcast on Chinese live-streaming platforms.
While some unapproved games have been broadcast in China in the past, the Chinese government is expected to "strictly enforce" this policy as it pertains to Blizzard titles.
This marked the first time in the history of the Overwatch League that a team had effectively dropped out of competition, even temporarily.
[14] The situation surrounding the Chengdu Hunters became even more uncertain when on May 4, 2023, The Esports Advocate reported that the team had disbanded.
Doubts about the franchise's future first arose in January when the team tweeted about the shutdown of Overwatch 2 in mainland China due to a breakdown in the longstanding relationship between Activision Blizzard and NetEase, the game's Chinese distribution partner.
Huya, Inc., facing fluctuating stock prices and reported losses, replaced its board director, potentially leading the organization to reduce esports spending.
[32] Teams in the 2023 season competed for a prize pool across the midseason tournament and playoffs, with the payout division detailed below.