Money Becomes a Major Concern in NA and EU LCS
Recently, money has been a big topic in the League of Legends scene, particularly in the NA and EU LCS. From the Korean Exodus to the Svenskeren drama and the struggles of top European organization Fnatic, salaries and revenue have been a point of contention. One Reddit user, /u/TrashyFanFic, sparked a discussion among LCS team owners about where their revenue comes from. Robert “Chachi” Stemmler, COO of NME, openly addressed this issue and engaged in a transparent discussion with interested redditors.
Click here to read more on Reddit.
Only 4 Teams in the NA LCS are Profitable
According to Chachi, NME’s revenue for their League team comes solely from Riot’s subsidy, which only covers half of the team’s expenses. The lack of well-known players makes it difficult for sponsors to invest in League of Legends teams, unlike other games. This means that the bottom six organizations in the NA LCS cannot cover their expenses, resulting in financial losses. Additionally, there are still two spots available for sale in the North American LCS, indicating that investing in a League of Legends team may not be worth it for aspiring organizations or investors.
Investing in LCS teams as a Marketing Strategy
Despite the financial challenges, Chachi believes that the League scene is still attractive for investors and organizations due to the exposure it offers. NME’s decision not to sell their LCS spot for $1,200,000 was driven by their desire to establish themselves as a brand in eSports. However, this raises concerns about the true motivation of owning a professional team in the most played game in the world. It seems that for many LCS teams, it is merely a marketing move rather than a competitive endeavor. This imbalance in financial rewards may jeopardize the competitiveness of the entire league and deter talented players from pursuing a career in professional gaming.
Potential Impact on Competitiveness
The financial risks for organizations and players make it understandable why many talented players hesitate to pursue a career in competitive gaming. Streaming often offers similar monetary rewards with less pressure and obligations. The lack of profitability and sponsorships for most LCS teams also discourages new organizations and investors from entering the scene, hindering the growth of competitiveness in the game as a whole.
Challenges in Improving the Situation
The growth of the eSports scene and the understanding of its business potential by sponsors, investors, and organizations from other industries are ongoing processes. Additionally, certain issues with the public perception of eSports need to be addressed. Riot’s strict sponsorship policies may also contribute to the difficulty in securing sponsorships compared to other games. Moreover, the salaries paid by Riot to players, while helpful, are not sufficient for new and inexperienced teams. A serious investor or owner is necessary for organizations to thrive. Although Riot provides financial support to organizations, more investment is needed to improve the financial situation for teams and players. This would lead to increased competition, professionalism, and overall interest in the scene.
As a community, we can also contribute to improving the situation by being dedicated fans, supporters, and promoters of the game and the teams we care about.
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