LoL Esports Business Model Changes

Business

18 March 2024 14:18

Riot Games has introduced a new business model for franchised League of Legends teams. Instead of sharing sponsorship revenue, teams will now share proceeds from in-game digital purchases. This shift aims to increase team revenue and decrease dependency on sponsorships during a downturn in the industry.

The company revealed its plans to create a Global Revenue Pool for teams to share the highlights of the pool is below,

General Shares: 50% of the GRP goes into General Shares and is allocated to Tier 1 teams.

Competitive Shares: 35% of the GRP flows into the Competitive bucket. These shares are allocated based on competitive performance and are split into two tranches: one based on regional league standings and the other based on international event placements.

Fandom Shares: The remaining 15% of the GRP goes into Fandom Shares. This bucket rewards teams for developing strong fandom for their players, leagues, and team brands.

Riot Games also stated that they will increase the standard esports revenue share percentage and increase the quantity of LoL Esports digital content.

Tags: League of Legends

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