LCK League Sustainability Statement: Demands for Change and Future Viability

2024-01-17 06:30:41

A joint statement representing the positions of the 10 LCK clubs, a professional league in the Korean region of ‘League of Legends (LoL)’, has emerged. It contains a statement demanding strong self-rescue measures for the league’s sustainability from the league’s ever-worsening deficit and the league’s host, LCK, but questions are growing as the statement’s subject and club information is not accurately stated.

Today, on the 17th, we received a joint statement from the teams participating in the LCK league as a press release. The content of the statement is related to the improvement in profitability of the 10 teams formed following the introduction of the league franchise and the non-response to the LCK league corporation’s request for change.

In a statement, he said, “LCK teams have discussed the issue of publicizing structural problems and difficulties, and with the majority of the team in favor, we would like to state our position as follows.” He added, “We would like to inform you that although the remaining teams had no significant differences in the direction of change, they were unable to participate in this joint statement due to differences in procedures and methods.”

The main content covered in the statement is that while the league has continued to grow since the launch of the LCK league, including increased league viewership and fandom growth, the league’s business feasibility has not improved. In the statement, it was mentioned that “the league’s business value has not grown over the past three years.”

Although it has greatly contributed to the growth of LCK league viewership, acquisition and retention of Riot Games’ ‘LoL’ users, and growth in sales and business feasibility, the profit distribution through the league franchise business presented by the LCK league corporation is showing negative growth and decreasing every year.

The clubs requested the following five items to improve LCK league business profits. Expanding investment in LCK dedicated personnel, sharing the commissioner’s trust, rational improvement of the league business structure including sales distribution, solving the problem of the number of annual LCK games that are significantly lower than that of other professional sports, solving functional problems in the game to improve the training environment, LOL Planning and execution of a scalable business model linked to IP.

Lastly, a statement regarding the reason for issuing a public statement was also added. “We have conveyed our opinions for a sustainable league and team structure several times over the past three years in various ways, but the LCK league corporation has been consistent in unilaterally conveying Riot Games’ policy,” he said.

In the statement, it was not clear which of the ten clubs agreed with the club. It is unknown whether all teams including T1, Gen.G Esports, D Plus Kia, and Hanwha Life Esports participated.

The media is currently investigating the subject of the statement and the participating clubs. The Korea Esports Association recently announced that it had provided a list of media outlets for sending press releases to LCK clubs participating as members of the association.

The LCK League responded, “We are currently checking and will announce our position later following confirming the facts.”

The following is the full joint statement from the teams participating in the LCK league.

The 10 teams that make up the LCK Franchise League (hereinfollowing referred to as the LCK League) have formed a consensus and have been requesting changes from the LCK League Corporation for the sustainability of the league for the past three years, but ultimately reached a situation that might not be resolved amicably.

Accordingly, LCK teams are responding to the issue of publicly notifying these structural problems and difficulties.
We discussed it, and with the majority of the team in favor, we would like to state our position as follows. We would like to inform you that although the rest of the team had no significant differences in the direction of change, they were unable to participate in this joint statement due to differences in procedures and methods.

When the LCK league was launched in 2020, teams believed in and participated in the vision of “the world’s best global esports league” presented by Riot Games (hereinfollowing Riot). Teams have faithfully performed all their efforts and obligations through world-class investments in players participating in the LCK league.

Through this, the LCK league has achieved great results in name and reality since its launch, and the league’s viewership, performance, and fandom have continued to grow. However, despite this continued growth, the LCK League Corporation has not been able to grow the league’s business value over the past three years. Clearly, the growth of the LCK League’s viewership has greatly contributed to the user acquisition and retention, sales, and business growth of Riot’s League of Legends (LOL), but the LCK
The team’s profit distribution through the league franchise business proposed by the league corporation is growing negatively and decreasing every year.

The LCK league corporation has never achieved its sales goals since its launch. Additionally, the distribution paid to teams over the past three years is significantly lower than that of other major regional leagues. On the other hand, the LCK league corporation is not sufficiently sharing or persuading league partner teams of specific visions and plans to improve the current situation.

Above all, teams are very concerned regarding Riot’s reduced investment in LOL esports and the LCK league. There are a series of situations where players are unable to train normally, such as delays in providing competition servers for practice matches and frequent errors occurring in game clients.

In addition, the LCK league corporation’s dedicated league personnel are continuously leaving to other departments and sports, and practical and important tasks for the growth of the league have been delayed or stopped.

For these reasons, it is no longer acceptable for all teams to invest in the LCK league and support players.
I am truly concerned that this is not a sustainable model. Teams believe that the LCK League Corporation is passing responsibility for growth and survival to players and teams without resolving fundamental issues, including business structure.

Nonetheless, all 10 teams still believe that the LCK league has the potential to achieve their great vision together. Teams are willing to continue investing to stay with their fans and players for the long term. Accordingly, we are requesting this from all relevant personnel at Riot, including the LCK Commissioner.

Please engage in active dialogue with teams for a sustainable future and better ecosystem for the LCK league. First of all, we request specific answers to the following issues.

1. Expanding investment in LCK dedicated personnel and sharing the commissioner’s trust
2. Reasonable improvement of the league business structure, including sales distribution
3. Solving the problem of the number of LCK games per year, which is significantly lower than that of other professional sports.
4. Resolving in-game functional issues to improve the training environment
5. Planning and execution of a scalable business model linked to LOL IP

Finally, we reveal why the teams decided to release their statements publicly. Over the past three years, teams have expressed their opinions on ‘sustainable league and team structure’ several times in various ways. However, the LCK league corporation has consistently conveyed Riot’s policy unilaterally. Even in the final negotiations, rather than reaching an amicable agreement, we were warned that disciplinary action may follow if we continue to raise a common voice.

In other words, teams were only forced to take responsibility as members of the LCK league and did not receive any rights or fruits of growth. The LCK league has been called “the world’s most successful esports league.” But behind the scenes, the raison d’être of the 10 teams is under threat.

In order to maintain the ecosystem of the LCK league, we hope that the LCK league corporation and Riot can understand the difficulties faced by teams that are members and partners of the league and have sincere discussions with the teams.

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