Many high-profile Esports teams have exited Apex Legends reportedly due to disagreements in the revenue sharing model. EA was said to have broken a promise to offer income share through in-game skins with team logos, which angered esports teams. EA initially proposed a fixed sum of $60,000 for each team. Most of the 20 participating teams responded, pleading with EA to adopt an uncapped 50/50 revenue share instead.
Apex Legends’ revenue share controversy with teams
The first offer of a fixed $60,000 fee for each team resulted from EA reportedly changing its mind about the revenue-sharing concept. The teams argued that this was “far below fair” and mentioned the significantly higher revenue splits offered in other esports games. CS: GO and Valorant have both produced seven-figure sums for esports organisations through their revenue share programmes, however, the exact game was not specified in any reports.
Teams response to EA
In response, a letter to EA was sent, spearheaded by the well-known team Liquid, and signed by 14 of the 20 teams. The letter asked for the unlimited 50/50 revenue split and noted, “We are not comfortable with the proposed licencing offer, nor do we believe that the decisions made around it have been done so in good faith.”
In response, EA made a new offer that still did not include revenue sharing. The top three teams would receive $160,000, the next three, $120,000, the next six, $80,000, and the lowest eight, $60,000, based on which teams’ skins would sell the most.
EA reportedly ended the conversation after the teams again reacted with a demand for a 50/50 revenue split, saying they would “internally discuss” how they would cooperate with the groups moving forward for “mutually beneficial partnerships”.
The esports team skins were scheduled to go on sale in October 2022, but as of mid-September, the disagreement was still going on behind the scenes. The skins were exposed later that month by a well-known dataminer.
The only in-game products available in the previous ALGS were player banners, which were considerably less popular cosmetics than skins and had low sales. EA may have been put off from the revenue-sharing ideas by these weak sales.
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