League of Legends is franchising, North American teams go for $10M

The North American League of Legends Championship Series (NA LCS) has, since its inception, featured a variable slate of teams. That changes this summer, as Riot Games has begun the process to convert to a franchise model.

Only a fixed number of NA LCS teams will have the opportunity to become permanent franchises, which must be purchased at a cost of $10 million. Exactly which teams are in and which are out will be determined with the help of “expert third parties.” Riot is looking for “stable, professional, well-funded and committed” organizations that are “committed to creating a rewarding environment for the pro players that work for them.”

After the final selection process, the NA LCS will have the same slate of teams every season. With luck, this will help them to secure more stable and consistent advertising partners.

Riot is also introducing revenue sharing, a process by which every team in the league will profit from each other’s success.

“In a healthy, long-term league, money generated by the ecosystem should be shared by the people who contribute to it,” wrote Riot. “We will be sharing league-based revenues (like the media deal announced last year and team-branded digital goods). In the same vein, teams will be required to share a portion of their league-driven revenues as well (including things like sponsorships and merch sales). This aligns the interests of all parties (while still granting considerable opportunity for motivated owners and superstar players to earn outsized revenues), creating a strong and competitive ecosystem.”

Finally, Riot will help to stand up the Players’ Association. While not explicitly called out as a union — the word is entirely absent from the announcement — it’s clear that it will be up to the players themselves to chart its future.

“Kickstarting an association which independently represents pro players is a complex process — legally and organizationally,” Riot wrote. The process will begin later this year when players vote on representatives.

The application period for teams looking to secure their franchise runs now through July 14. In August, Riot says it will have more information about the Players’ Association. You can read more at our League of Legends sister site, The Rift Herald.

The Overwatch League has also said that it wants to move to a franchise model, with teams based in cities all around the United States. Rumors put the price on each of those franchises at $20 million.