(Bloomberg) -- Microsoft Corp.’s Activision unit is offering teams competing in its professional Call of Duty League financial relief as the esports industry faces broad challenges generating profit.

The teams, including ones owned by sports-business billionaires Robert Kraft and Stan Kroenke, will no longer be required to pay the league’s entry fees, according to a blog post on Tuesday. Previously collected fees will be returned. A lawsuit this year from a former owner identified the fees as $27.5 million per franchise.

Owners will also receive a higher share of sales from in-game items, like team-branded digital costumes, and get subsidies for organizing live events. Activision is also offering the teams two-year minimum revenue guarantees.

Activision launched a city-based league for competitions based on its popular Call of Duty video game in 2020. But esports organizations have struggled as turnout for live events proved less than anticipated and sponsors pulled away.

Bloomberg previously reported that Activision was in talks to boost the teams’ revenue split.

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