Blizzard ended the Competitive Balance Tax in 2021.
details what the two leagues called a Competitive Balance Tax. Under the tax, if one of the franchised teams paid its players over a limit imposed by Activision Blizzard, the teams would be fined and have the fee distributed to the other non-offending teams. In theory, the Competitive Balance Tax was to prevent richer, better resourced teams from gobbling up the best talent with high salaries . But it seems that, in practice, this was used to deflate wages for all players overall.
The DOJ’s press release also contains the terms for the settlement’s consent decree, which would prohibit Activision Blizzard from imposing any kind of tax or salary cap in the future.by the Department of Justice. Joe Christinat, spokesperson for Activision Blizzard, commented on the suit in an email to“We have always believed, and still believe, that the Competitive Balance Tax was lawful, and it did not have an adverse impact on player salaries.
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