League of Legends: Riot Games wants to share digital sales revenue with clubs

Riot Games head of esports John Needham published a lengthy press release this Thursday in which he announced the publisher’s desire to form new partnerships with major league (outside China) LCK, LCS and LEC clubs. Legends ecosystem. These clubs will receive a portion of the revenue associated with the sale of esports-related digital content in the game.

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Riot Games announced in a press release this Thursday, signed by the publisher’s esports boss John Needham – its desire to implement a new partnership model with Tier 1 teams. League of Legends Worldwide (except China): LCK (South Korea), LCS (North America) and LEC (EMEA). ” Under the current partnership model, teams agree to pay approximately $10 million to participate in the league and receive 50% of certain revenues (not profits) generated by the league.Reminds the manager in the introduction. Historically, this revenue came primarily from sponsors and, to a much lesser extent, from broadcast rights. »

Henceforth, and already the VCT circuit is on the brave, teams present in these three leagues will also receive a portion of revenue from the sale of LoL Esports digital content. Until now, only teams participating in Mid Season Invitationals or Worlds received a share of this revenue, but Riot is looking to extend this partnership to all Tier 1 teams. Specifically, Riot will create a “World Income Reserve” (Global Income Reserve) with revenue from the sale of this digital content (skins, emotes, etc.) as a revenue pool, or GRP). 50% of this revenue will be redistributed to the teams. 35% are linked to domestic league results and other international event results based on the teams’ competitive performance. Another 15 percent will be distributed according to the popularity of the teams, to encourage retention of the structure. fan base

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High ceiling

Riot Games also indicated that the publisher would increase the amount of digital content in a season, so that the amount generated ” Main source of income » Clubs. Riot justifies this stipulation by emphasizing the sale of these materials “ Generally less sensitive to economic reaction and have a higher cap than sponsor contracts, which are limited by inventory, category and market penetration.“This new partnership also provides for the teams in the three regions to receive a fixed amount from the publisher.” In addition to digital esports content revenue, we will pay 50% of other direct revenue (sponsors, media, etc.) once Riot recovers its annual investment in LoL Esports.

“, adds John Needham.