Why Riot Games removed regional prize pools and what it means for the future of League of Legends esports

In a surprise to many, Riot Games recently decided to “modernize” League of Legends by removing the regional prize pools for three major regions: the LEC, LCS, and LCK. But do these changes benefit the leagues they are taking these prize pools away from?

Riot confirmed that the LCP and CBLoL will remain unaffected by these changes, as they are on different partnership models than the three LoL flagship leagues. So will these changes be a good thing? Walk with us as we discuss why Riot removed prize pool from some of LoL’s biggest leagues. 

According to Riot, the prize pools players earned were comparatively small, nothing like what they would have earned during the franchise’s boom. Riot claims these changes are for the benefit and continuation of a “mature” global revenue model, with international events such as Worlds and MSI unaffected by them.

With the LCS, LEC, and LCK prize pools removed, it begs the question: How can this be anything but a negative? Let’s look a little deeper with the LCS, for example. Riot is committing to roadshows in North America, a league that has been crying out for its product to go on the road. Riot is marginally reducing the number of studio days and removing the prize pool to fund international bootcamps and bring the game back to audiences outside Los Angeles.

For the LCK and LEC, it’s a little bit trickier of a conversation. With the LCK, Riot has had a difficult time getting its ecosystem in order, with Gen.G’s Arnold Hur citing in an interview with Jean “TraYtoN” Medzadourian that “I think Riot’s cut their esports cost in the last two years by about 40%. LCK, the average team salary costs have gone up in those two years.” The primary goal for teams this year is to build fandom and build competitive rosters to attend the many international events.

With Riot shifting towards a more global revenue model, similar to what it has in VALORANT, how do players earn money in these domestic leagues now that the League of Legends esports prize pool has been removed? The GRP is structured so that performance in domestic leagues is still rewarded, even after Riot removed the playoff placement prize pool.

For example, if you finish first in the LCK, you will receive a larger share of that revenue pool, rewarding you for your efforts in building a championship-calibre roster. This also applies internationally; the better you do, the more money you will earn at the end of the year.

Additionally, teams are incentivized based on their ability to produce fandom and grow the league. 15% is allocated to teams building a strong, stable brand. As for salaries, each league has a base salary, and the LCK currently boasts some of the highest salaries in esports, with that number continuing to grow. Even with adjustments to Riot’s revenue-sharing model, players will still be able to make money.

Depending on who you ask, these changes will have both positive and negative effects. For the LCK, for example, teams that have to fork out millions of dollars to compete at the very top will feel the impact of not having that extra bit of income. If you build a superteam but don’t even make Worlds, you’re in trouble. 

But if you ask an LEC fan, player, or owner, some could argue this shift will help the little guy, the smaller organizations, that will get a more stable stream of income from the global revenue pool. This will also benefit teams that can build a stable fanbase, with KOI and Karmine Corp far ahead of the curve, producing roadshow after roadshow. These two teams alone will compete for a larger share of the 15% we mentioned earlier.

For LCS, this looks like a positive change. With salaries decreasing each year and many games not played on the main stage, trading the main studio for additional roadshows will be a net positive for both players and fans. Additionally, the chance to win a free bootcamp trip to Korea, which costs tens of thousands to run each year, will be a financial benefit for teams that don’t win the Spring Split.