US Department of Justice is investigating Overwatch League's 'soft salary cap' | PC Gamer - jacksonlemp1986
US Department of Justice is investigating Overwatch League's 'soft earnings cap'
The Overwatch League is being investigated by the US Department of Justice's antitrust division over its downlike salary pileus policy, reported to a study from Dot Esports.
"In 2020, the soft salary ceiling threshold equaled $1.6 million, according to league sources. If a team up exceeded that add up in annual player salaries, the organization would and so have to pay players' salaries as well as the excess amount to the league American Samoa a luxury revenue enhancement," says their composition.
Eastern Samoa this luxury tax discourages other organizations from offering competitive salaries, it could possibly be a violation of antitrust. This insurance hasn't been publicly acknowledged by Activision Blizzard, although information technology was firstly reportable on aside Dexerto in 2019, referencing a memo that referred to a "competitive balance tax" and now-deleted tweets by Susie Kim, who was London Spitfire's general coach at the time, referencing the "(soft) remuneration pileus".
In response to a request for comment, a spokesperson from Activision Snowstorm told PC Gamer, "We have received an inquiry from the Department of Justice and are cooperating consequently. We give up epic entertainment to our fans and support our players and teams in producing the most competitive and enjoyable esports leagues in the world."
Many sports leagues such as the NFL and NBA have "nonstatutory labor exemptions", as the 1890 Sherman Act on, a major piece of antitrust legislating, does non apply to union-employer agreements. However, players in the Overwatch Conference are not currently unionised.
Source: https://www.pcgamer.com/us-department-of-justice-is-investigating-overwatch-leagues-soft-salary-cap/
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