Riot Games Revamps LoL Esports Business Model for Sustainable Future



Riot Games has unveiled a comprehensive update to its vision for the esports landscape, emphasizing significant shifts within the League of Legends (LoL) Esports ecosystem to ensure its long-term sustainability and health. Celebrating over a decade of growth and engagement in LoL Esports, Riot has announced a new business model for professional teams in major leagues like the LCS, LEC, and LCK, aiming to align more closely with the successful model used for the VALORANT Champions Tour (VCT).

This revamped strategy comes after Riot’s reflection on the evolution of LoL Esports, which has seen tremendous scale, global reach, and the launch of another major esport, VALORANT. Despite facing industry-wide business challenges, including a workforce reduction of 11% earlier this year, Riot remains optimistic, buoyed by record viewership numbers and significant sponsorship engagements.

The new business model promises more predictable revenues for teams through a focus on in-game digital item sales, mirroring the support from LoL Esports fans worldwide. This approach is designed to address the overreliance on sponsorship and create a more resilient financial structure that benefits Riot, professional teams, and other stakeholders.

Additionally, Riot is introducing a Global Revenue Pool (GRP) to extend digital content revenue benefits across the Tier 1 ecosystem, rewarding teams for competitive performance and fan engagement. This model shifts the revenue-sharing focus from sponsorships to digital sales, potentially offering a more stable and scalable revenue source.

As Riot Games continues to invest heavily in esports, these adjustments reflect a commitment to evolving the business model of LoL Esports to secure its future. This strategic pivot aims to enhance the esports experience for players, teams, and fans, ensuring the enduring success and sustainability of the world’s leading esport.


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