Riot Games Announces Franchising in North American LCS
Riot Games has officially announced that franchising is coming to the North American LCS, transforming the league as we know it. Starting in the 2018 season, every team in the LCS will be a permanent member chosen through an application process, replacing the current 10-team league and promotion/relegation system.
The application process opens today and runs through July 14. Riot will reveal the successful bidders in November. Potential applicants will be evaluated on brand development, team operations, individuals involved, and support for player welfare. Riot will perform in-depth investigations, including financial and credit checks.
If any existing LCS team is not selected for a franchise, Riot will facilitate buyouts of contracted players and potentially the brands themselves. Teams in this position will receive compensation for their investment in the league.
New Revenue Sharing Model and Minimum Salary Increase
Current LCS teams will pay $10 million for a slot in the new league, with half paid up front. New teams will pay an additional $3 million. Teams will also share a portion of revenues with the league through a new revenue sharing model.
Under the new model, teams will receive 32.5 percent of total revenue. Half of this will be shared equally among teams, with the other half distributed based on league performance. Players will receive a 35 percent share of league revenue, with a minimum salary increase to $75,000. Any additional payment will be made if salaries fall below this amount, but they will still receive their contracted amount if it exceeds 35 percent.
This leaves 32.5 percent of revenue for Riot itself.
Changes to Challenger Series and Player Association
The Challenger Series will come to an end, and an academy team league will replace it, with the 10 LCS franchises fielding secondary rosters. This also means an end to CS qualifiers and direct paths into the LCS. However, teams can still be removed from the league for poor performance.
Riot will fund the creation of a player association within the new structure. Players will elect their representatives later this month, and more updates on the association will be provided in August.
Riot Games, franchising, North American LCS, league, application process, revenue sharing model, minimum salary increase, Challenger Series, player association