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    Riot Games Revamps League of Legends Team Revenue Model

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    Video game publisher and creator Riot Games is changing the financial model for its franchised League of Legends team.

    Riot Games, led by President of Esports John Needham, recently announced that blog post We outline key changes aimed at increasing team revenue and reducing reliance on sponsors during a difficult time for the industry.

    Restructuring of business model

    The new model focuses on revenue sharing from in-game digital purchases rather than sponsorship revenue sharing. This tactical change allowed us the opportunity to benefit from more player interaction with in-game content. By leveraging this revenue stream, your team can take more control over their financial future and build a more stable financial foundation.

    Teams in key regions such as LCS (North America), LEC (EMEA), and LCK (South Korea) will be affected by this change. However, Riot Games and LPL (China) are still in discussions on how their business plans will change.

    Also read: RIOT Games introduces new eligibility rules

    According to Riot Games' plan, a Global Revenue Pool (GRP) will be established to collect funds from digital LoL Esports content and distribute them to teams according to several criteria.

    Global Tier 1 teams will split 50% of GRP revenue equally. The 35% will be divided into two pools based on competition performance, one for international event placements and one for regional league placements.

    The remaining 15% of GRP revenue will be allocated to “Fandom Shares,” intended to compensate teams for “building strong fandom” around their teams, players, and leagues. riot No information was given as to the criteria by which fandoms would be judged.

    Under the proposed changes, teams would also receive fixed stipends from Riot and revenue from GRP. Riot says, “Even after recouping the annual investment, LoL Esports” and will continue to donate 50% of other direct revenues, including sponsorships and media rights. This change was made at the expense of a “move away” from sponsorship revenue sharing.

    Increase team revenue share

    Needham revealed that riot This will increase the revenue share that teams receive from digital LoL Esports content, but the new amount was not made public. He promised there would be news about the release of digital products later this year. It also said the past two seasons of content “set new records for engagement and revenue.”

    by league of legends For developers, this fix will put LoL Esports on a “path to long-term sustainability” and bring greater financial benefits and more stable revenue to teams. He argued that the new model establishes aligned financial incentives for esports organizations and leagues, rather than having them compete for the same small amount of sponsorship money.

    Riot Games' bold decision demonstrates their dedication to the stability and long-term success of the League of Legends esports scene. By increasing revenue streams and reducing dependence on external sponsors, your team will be better equipped to withstand industry changes and maintain your position as a competitive leader. This tactical change generally signifies an important turning point in the world. league of legends Developing a franchise business model. This will ensure a more stable future for both teams and the esports industry.

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