The EU LCS to Introduce Franchising in 2019
The professional League of Legends community was abuzz with speculation about the future of the NA LCS in the last offseason. And now, it seems that the EU LCS will be going through the same changes. According to a report from ESPN, franchising will come to Europe starting in 2019.
New Selection Process and Partnership Agreements
Similar to the process in North America, Riot Games will be accepting applications from both new and existing teams in a multi-step selection process that will run through the end of the year. Teams that are accepted will sign three-year partnership agreements. However, poor performers or teams with disciplinary issues may still be removed at the end of the term.
Riot Games used eight million Euros ($9.93 million) as an example figure for the initial franchise fee for accepted teams. This is roughly in line with the $10 million base franchise fee in NA. It remains uncertain whether new entrants in the EU LCS will face additional fees like those in NA.
Consolidating Revenue and Sharing with Players
The high up-front costs did not discourage applications in the NA LCS, and the same is expected for the EU LCS. By restructuring the region, Riot aims to consolidate revenue pools, share revenue with teams and players, and create a healthier business ecosystem. This is a major reason why established organizations like G2, Fnatic, Splyce, and Misfits applied for franchising in NA last year.
In addition to revenue sharing, players in the EU LCS will also receive a 35% share of the new revenue pool. The minimum player salary will be increased from $29,791 to $74,749. However, Riot’s plans for a players’ association and a player development system are still unclear.
Application Process and Timeline
After initial applications are submitted, select teams will move on to a second round interview with Riot Games in Berlin from July through September. The franchising process is expected to conclude in December, following a similar timeline to the NA LCS.
Update: Franchise Fee and Application Start Date
Update: Since its initial publication, ESPN has updated its report to reveal that the franchise fee for new entrants in the EU LCS will be around 10.5 million Euros ($13.02 million). Applications will start being accepted from Wednesday onwards. If the same structure as NA is used, the 2.5 million Euro additional payment from new organizations will be distributed among endemic organizations that are not selected for the franchised league.
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