US Department of Justice is investigating Overwatch League's 'soft salary cap' | PC Gamer - diazthoom1983
US Section of Justice is investigating Overwatch League's 'conciliatory salary detonating device'
The Overwatch League is existence investigated by the U.S.A Department of Justice Department's antitrust air division over its compressible salary cap policy, accordant to a report from Battery-acid Esports.
"In 2020, the soft salary cap threshold equaled $1.6 million, accordant to league sources. If a team exceeded that amount in annual player salaries, the organization would then have to pay players' salaries as well as the excess amount to the league A a luxury tax," says their report.
Atomic number 3 this luxury tax discourages former organizations from offering agonistical salaries, it could possibly be a intrusion of fair. This insurance hasn't been in public acknowledged by Activision Blizzard, although it was first reportable on by Dexerto in 2019, referencing a memo that referred to a "contending equilibrium tax" and right away-deleted tweets by Susie Kim, World Health Organization was London Spitfire's unspecific manager at the time, referencing the "(soft) salary cap".
In response to a request for comment, a voice from Activision Blizzard told PC Gamer, "We take in accepted an inquiry from the Department of Justice and are cooperating accordingly. We deliver epic entertainment to our fans and support our players and teams in producing the about private-enterprise and pleasant esports leagues in the world."
Many sports leagues such as the NFL and NBA have "nonstatutory labor exemptions", equally the 1890 Sherman Act, a major piece of antitrust law, does not apply to union-employer agreements. All the same, players in the Overwatch Conference are non currently unionised.
Source: https://www.pcgamer.com/us-department-of-justice-is-investigating-overwatch-leagues-soft-salary-cap/
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