The applications are in, and now we wait.
Million-dollar paydays are on the line for orgs and players. But the money won’t come from tournament prizes. Instead, everyone is waiting for Riot’s decision on NA LCS franchising.
It’s been a few weeks since the application deadline, and a couple months since franchising was first announced. What have we learned so far, and what is still uncertain?
Organizations are definitely interested
The NA LCS has garnered strong interest from organizations, unlike the initial uncertainty surrounding Overwatch League investment. Each current NA LCS team has submitted a financially-backed application, and even four EU LCS teams have done the same. Additionally, a Chinese-backed team has also applied, showing that there is something special about the NA LCS. (Source: The Score)
Players are sitting this one out
In contrast to the excitement from orgs, the players have been less enthusiastic. The franchised league has created a player’s organization, but very few players have actively engaged in association meetings. While concepts like minimum player salaries will be implemented, player welfare may not improve without additional steps such as requiring legal representation for each player. (Source: Industry attorney Ryan Morrison)
Things we don’t know
Riot has kept its process hidden, leaving a lot of uncertainty.
Most of what we know about economics comes from a Bloomberg article that reported the franchise fee would be $10 million, with an additional $3 million for non-LCS teams. The fee may be spread out over several years and could be adjusted based on the league’s financial success. However, it’s unclear if the additional $3 million applies. (Source: Bloomberg, Eunited manager Dan Clerke)
With the franchising announcement, Riot mentioned revenue sharing. This includes merchandise, sponsorship revenue, team-branded digital goods, and revenues from a $350 million streaming deal with BAMTech. However, the implementation of the deal has stalled after Disney’s acquisition of Bamtech, which could impact year one revenues. (Source: Riot, Disney)
The next steps and timeline for more information are currently unknown. Riot has received hundreds of applications for the NA LCS, so it will take time for them to conduct their due diligence.