Nike and LPL Teams in Dispute Over Contract
Recent reports suggesting that the League of Legends Pro League (LPL) signed a lucrative deal with Nike have been proven incorrect, according to The Esports Observer. The reported five-year, $144 million agreement was inaccurate, and LPL teams are now in dispute with Riot Games’ parent company Tencent Holdings over the contract.
Disputes Over Contract Terms
The details of the contract were not specified in the report, but it is clear that LPL teams are unhappy with the terms. Nike is currently in negotiations with the teams, and one of the key points of contention is that the contract would prevent LPL teams from seeking any other clothing sponsorship. Additionally, all players, team staff, coaches, and tournament staff would be required to wear Nike apparel on broadcasts. This poses a problem for organizations like EDG, which already have clothing partnerships in place with other brands like Li-Ning.
Sponsorship Tied to Viewership
The new deal being negotiated is tied to viewership numbers. If the number of viewers increases, the value of the sponsorship would continue. However, if the numbers drop too far, the deal would come to an end.
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