LCS Owners draft letter to Riot leaked concerning financial stability

Reginald had previously voiced concerns earlier in the year concerning financial stability for competitive teams.

riot-games-logo

The TSM Owner Reginald previously in the year discussed in an interview that competitive teams were not stable, and overall unsustainable. He complained that Riot’s revenue sharing was poor, and it was harming the League of Legends competitive scene.

Check out coverage of the Reginald drama Here

In response, Riot did revenue share much more in League of Legends World 2016, where more than half of the prize pool was crowd funded. This crowd funding stemmed from revenue sharing through the purchase of selected “championship skins” and the “championship ward”, where 30% of sales would contribute to the Worlds 2016 prize pool. This was great news, but I presume that the teams that were participating in the letter didn’t get a big enough slice, thus the letter was sent.

Check out the full letter Here

The problems addressed in the letter were that :

  1. The lack of job security, fair compensation and longer careers for players caused by insufficient compensation and relegation;
  2. The damage to the Teams’ ability to invest in LCS players caused by insufficient compensation and relegation;
  3. The weakening relationship between fans and LCS caused by relegation;
  4. The harm to Team sponsorships caused by relegation and LCS’ restrictions on sponsors;
  5. The effective elimination of the path to pro caused by the Teams’ need to redirect resources from LCS to Challenger as a result of insufficient compensation and relegation.
  6. The financial hardship suffered by the Teams caused by insufficient compensation paid to the teams.

The teams that were alledgely participating were :

CLOUD9 ESPORTS, INC. (for C9)
CLG ESPORTS LLC (for CLG)
DIGNITAS ESPORTS LLC (for DIGNITAS)
ENVY GAMING LLC (for Envyus)
PHOENIX1 ESPORTS, LLC (for P1)
IMMORTALS, LLC (for Immortals)
TEAM LIQUID ENTERPRISES LLC (for Team Liquid)
SOLOMID CORPORATION (for TSM)
FNATIC LTD (for Fnatic)
GIANTS GAMING E-SPORTS S.L (for Giants)
GAMERS 2 MEDIA S.L (for G2)
H2K GAMING LTD (for H2K)
ESPORTS NOW LLC (for Team Misfits)
ORIGEN GAMING S.L (for Origen)
SPLYCE INC (for Splyce)
UNICORNS OF LOVE UG (for Unicorns)
REDWING (for Vitality)
ROCCAT GMBH (for Roccat)