What is Franchising?
Franchising is a system of league organization, typically only in North America, where investors buy league slots and are safe from relegation or any other type of re-qualification that may cause them to lose their spot in the league. This security allows for teams to invest in their team and work with the league and other teams in the league to grow the league and in result, increase the value of their own team.
What does this mean for Call of Duty?
Activision, the publisher of Call of Duty, already runs another franchised league, the Overwatch League (OWL), through one of their other major esports titles Overwatch. This has allowed them to do things such as sign a two year $90 million deal with Twitch.tv for streaming rights, increase number and scale of sponsorships, have in-game skins for all characters (for all teams), have minimum base salaries along with healthcare and benefits, build esports complexes to house and train their teams, and take the next step into becoming more professional and a part of the global sports landscape.
How many teams are in the league?
To start, Activision is planning on twelve teams, with between seven and ten players on each roster along with coaches and analysts. Their eventual goal is to have 28 teams across the world. The price for a team in the first season of the league is reported to be $25 million.