The name of League Of Legends esports team H2K might stand for hard to kill, but Riot Games is managing to find a way to do just that. One of the best teams in the European region released a statement on Friday about their financial struggles playing in the EU LCS. CEO Susan Tully and Board Chairman Richard Lippe said that H2K “will not continue in the EU LCS beyond the 2017 season UNLESS RIOT creates a new financial and operating structure.” H2K has been losing more than € 1 million a year and has given Riot more than €2,000,000 since they started in 2015. The team argues that Riot Games makes an insane amount of money from their game, so why does very little of it end up in the pockets of the teams that promote it?
At its core, esports is just another way to advertise a video game. Any fan with enough ambition and time to put into games like League can potentially reach the upper echelon and end up playing at massive tournaments, like the LCS. Along the way, you might throw Riot a few hundred dollars in skins or buy those Rune Pages to give yourself a bit more of a competitive edge.You can’t play League Of Legends on a professional stage without Riot’s approval, forcing those who want to play to act in accordance with the MOBA giant.
The MLB isn’t selling the game of baseball; anyone with a stick and a field can play. Using that same analogy, MLB franchises make serious bank off their teams, through merchandising and revenue sharing arrangements that League Of Legends teams, especially ones in the EU LCS, just don’t have. The NA LCs has moved into franchising, but their European counterparts don’t have that option. The team that’s currently playing for the third spot in Riot’s championship shouldn’t be worried about having a sustainable business.
“The partnership with RIOT is neither rational nor fair,” the H2K statement said. “As our partner, RIOT should provide financial stability for the teams.” We’re at a volatile moment in esports, when everyone’s trying to make a buck without knowing how. Five years ago, there were only a few people that viewed professional gaming as a lucrative business. Now, millions of dollars are on the line every time a player touches a mouse and keyboard. Huge sponsors, like HP and T-Mobile have started sponsoring North American teams, but Europe has yet to blow up in the same way.
It’s unfortunate Riot Games has let the EU LCS take second seat to NA. The games are on at awkward times, making it harder for viewers in the Americas to watch. On top of that, it seems like the talent pool has been slowly dwindling, with pros choosing to go regions like China and NA, where there’s more money to be made.
H2K doesn’t want to leave the LCS, but the team might not have a choice. If there isn’t a way to make a steady income for their players, coaches and other staff members, what’s the point? To make Riot Games even more money while they slowly drift into obscurity? I hope revenue sharing and subsidies to the teams come to Europe, because it would be a shame for H2K to go extinct.
How do you feel about the European LCS and the need for esports pros to make money? Tell us in a salt-filled message in the League Of Legends client.
