Gen.G CEO Arnold Hur sounded the alarm on League of Legends esports, claiming that Riot Video games’ present construction is totally unsustainable. It’s on the level the place groups are in search of consumers and may’t get any bids.
Keep in mind, this isn’t throughout the ailing LCS both, however the LCK and LPL — the esport’s most prestigious and profitable leagues. Whereas China’s league not doing so effectively isn’t any shock, contemplating backside groups are attempting to exit as quick as they will, Korea having a tough go of issues is way more dire.
In an interview with TraYtoN, Arnold described not solely the problems groups are having with staying afloat, but additionally the issue with how groups have tailored.
With the way in which issues are, profitable is much less worthwhile than dropping for many groups in keeping with Arnold. What was initially meant as a Riot lifeline for groups to have the ability to maintain operations has turn into the one motive some groups are staying afloat.
Dropping is Extra Price-Efficient Than Profitable
Fixing the esports sustainability downside is a troublesome proposition. If groups aren’t profitable constantly, they in all probability gained’t have followers. But when just one crew can win and everybody spends massive, then the whole league sinks with how excessive salaries have gotten.
“The most important downside that I see proper now in League of Legends is that there’s no incentive – the incentives should not aligned with you desirous to make a aggressive crew. I’ll make extra revenue making a dropping crew in League of Legends than I’d making a profitable crew. That’s a tousled system,” Arnold defined.
He needs to see wage caps applied to make the ecosystem more healthy and make it simpler for groups to construct a aggressive roster. Except you’re T1, it’s not reasonably priced.
“It doesn’t make sense for individuals simply to lose cash and be a aggressive crew to realize followers. The opposite possibility is simply to not do something, sit there, and accumulate a test from Riot.”
Hanwha Life Esports has spent massive on a number of rosters solely to constantly end behind T1 and Gen.G. It’s onerous to think about they make a revenue. Picture Credit score: Riot Video games/LCK
Out of Nongshim RedForce, OK BRION (beforehand Fredit Brion, hyFresh Blade, Brion Blade), and DN SOOPers (beforehand Afreeca Freecs, Kwangdong Freecs, DN Freecs), just one crew has made it to Worlds: Afreeca Freecs in 2018. That’s it. These groups have been on the backside for literal years at this level.
Nonetheless, Nongshim RedForce is confirmed to be worthwhile. They’ve been sitting on the backside for therefore lengthy that they’ve funds to rebound in 2026 and construct an actual crew. BRION and DN SOOPers have gone by means of all these rebrands for a motive: selecting up title sponsors and getting extra income.
There’s a great likelihood these backside tier groups are doing higher financially than groups that constantly get Third-Fifth by simply operating a low-budget operation, taking tons of sponsors, and amassing a test from Riot.Â
Nongshim is taking a transparent threat in 2026 signing 2021 World Champion Lee “Scout” Ye-chan to pair with 2022 World Champion Hwang “Kingen” Seong-hoon, so it stays to be seen if being a uncommon exception to the pattern Arnold identified pays off for them.
Extra Than Only a Paycheck
Although Arnold painted a grim image, he’s bought one great point going with Gen.G: Individuals belief them to win. In accordance with him, he’s been capable of hold famous person gamers at a cheaper price than different individuals are providing as a result of they’ve a confirmed observe document and nice assist employees.
Whereas he didn’t disclose particular particulars, he did say that there are different groups that provided much more for Kim “Canyon” Geon-bu than Gen.G did. Leakers claimed that at one level, Canyon was severely contemplating Hanwha Life Esports, although that by no means got here to fruition.
“Canyon signed for a hell of loads lower than he wanted to,” Arnold claimed. “I wish to hold investing in a sport that I really like. I wish to hold making an attempt to make profitable rosters. Doesn’t imply we’ll at all times succeed, however proper now, the motivation construction isn’t structured that approach.
Canyon is prepared to stay with Gen.G for a decrease quantity than different groups as a result of he trusts they will win championships. Picture Credit score: Colin Younger-Wolff, Riot Video games
“You realize, among the biggest names in esports that we have been hyped about? Not there. TSM. 100 Thieves. RNG. It’s simply gonna hold taking place,” he defined.
It’s on the level the place groups can’t promote their spots to anybody as a result of nobody needs to purchase in.
“I’ve had three completely different groups in Asia, even within the LCK, method me about making an attempt to promote their crew or purchase their crew. They couldn’t discover any consumers. That is dangerous, man.”
Whereas Arnold stays optimistic in regards to the long-term potential of League of Legends as an esport, he additionally believes that modifications are wanted to place LoL esports on a path to sustainability for groups that aren’t already on the high or the underside.
