The LCK, Korea’s premiere League of Legends circuit, is working at a large loss. They’re bleeding cash quickly, with the league dropping billions of Korean Gained yr over yr.
It’s on the level the place monetary consultants worry the LCK might collapse fully in the event that they don’t diversify their income streams, with precise profitability of the league taking a large dip in 2024.
Although it wasn’t precisely worthwhile in 2022 or 2023, 2024 was an enormous down yr and noticed the most important losses within the LCK’s historical past. And it’s onerous to think about issues have modified a lot in 2025.Article continues after advert
Riot Video games/LCK
League of Legends esports proceed to interrupt viewership data, with the LCK being extra well-liked than ever this yr and seeing over 2 million concurrent viewers on the most important matches. Nonetheless, that viewership and people eyes on the league isn’t translating into revenue.
Specialists worry LCK might collapse
League of Legends went by large restructuring throughout virtually each professional league going into 2025, with Riot looking for methods to make each professional league extra sustainable. And, now that the monetary reporting for the LCK is public, we’ve gotten a peek at a part of the explanation why.Article continues after adArticle continues after advert
The LCK Company’s reported losses are as follows for every year:
2022: 8.1 billion KRW (~$5,621,000 USD)
2023: 13.2 billion KRW (~$9,161,000 USD)
2024: 28.5 billion KRW (~$19,780,000 USD)
This has resulted in cumulative losses totaling 42.7 billion KRW (~$29,635,000), with a lot of that being incurred in 2024 alone.
Moreover, whole gross sales went from 27.9 billion KRW (~$19,363,000 USD) in 2022 all the best way right down to 11.4 billion KRW (~$7,912,000 USD) in 2024. The quantity of whole income has been lower by virtually two thirds, a large blow to the higher league.
It’s price mentioning that Riot has 100% possession of the LCK company, and that them reporting losses may nonetheless imply Riot’s creating wealth off the league. A lot of this may very well be attributed to the LCK softening operational prices for taking part groups by lowering the membership charges and offering revenue sharing so the groups they’ve can keep afloat.Article continues after advert
That is even factoring in that the LCK hosts T1, arguably the most important esports crew on the planet by way of reputation.
Colin Younger-Wolff/Riot Video games
Nonetheless, 2024’s large blow will be attributed to their streaming exclusivity cope with Chinese language platform Huya falling by, a deal that had been financially stimulating the LCK for years. Article continues after advert
Additionally they held Valorant Champions Seoul within the LoL park enviornment, incurring operational prices that have been reported on the LCK Company’s financials. There’s an opportunity that this was revenue for Riot although it technically needs to be reported as a loss.Article continues after advert
So, whereas it’s not just like the LCK goes to right away collapse, consultants worry that this path isn’t sustainable.
“Though the affect of e-sports is rising, they haven’t discovered a income construction but, so the LCK groups which were investing for years are having a really troublesome time, and in consequence, the prices that Riot Korea has to bear are rising,” reads a report from South Korean monetary publication DealSite.Article continues after advert
And, with viewership trending down for many leagues outdoors of the LCK after Riot’s restructuring, there’s an opportunity different elements of the world have it even worse.
