Riot Games Absorbs LCK to Keep League Alive After Massive Financial Losses

Despite being the most elite region in League of Legends, League Champions Korea (LCK) is getting absorbed by Riot Games after facing massive financial losses in 2024.

While Riot was always bankrolling the LCK, it operated independently to ensure the transparent operation of the franchised league. It had continually been operating at a loss, but, considering the esport is a big ad for League of Legends, the loss was fine with Riot.

However, 2024 marked a significant downturn. Their net losses went from around $9 million in 2023 to around $20 million in 2024, according to Korean finance publication DealSite. The league was rapidly losing too much money to justify its existence.

So, Riot is intervening in an attempt to increase profitability by merging LCK and Riot Games Korea. And, by the sound of their FAQ on the subject, this change may ultimately be beneficial for players as Riot tries to diversify the league’s revenue streams.

The LCK Trophy in League of Legends

The LCK is the most prestigious region in League of Legends. Image Credit: Riot Games

What’s Changing in the LCK Merger?

When it comes to the actual product, not much is changing for LCK. The broadcast will look the same, and nothing will be changing about the branding. Those who don’t know about the LCK merger will, in isolation, likely not notice a thing.

However, those who consistently play League of Legends will notice changes. Rather than trying to make money on its own by courting sponsors and using the LCK brand to bring in revenue, they’re trying to lean more heavily on LoL as a product to bring in money.

“This merger will unite the game and esports league, increasing game-linked revenue (GRP and other global revenue structures) and providing opportunities for greater growth for both teams and leagues,” an LCK FAQ explains. “Integrated product and campaign planning between esports leagues and games will be facilitated, which is expected to increase revenue distribution to teams.”

League of Legends already offers ways for players to spend money in-game to support esports teams, with the Worlds skins always being a massive hit among players. Outside of those skins, though, players have few options other than small shows of support like emotes and player icons.

G2 burger flip emote in League of Legends

Teams get to design their own emotes, but these aren’t nearly as substantial or enticing to players as actual skins for champions. Image Credit: Riot Games

By absorbing the league and working with them more closely, Riot gains the opportunity to produce more cosmetics and other in-game items that can support the league. It also gives LoL more opportunities to advertise new skins on the broadcast, helping sell more of their own product rather than relying on sponsorship deals.

While this change isn’t exactly a healthy sign for the most iconic region in League of Legends, it shows that Riot is trying to be proactive in creating a more sustainable ecosystem on their terms rather than just letting the league bleed out.

In the meantime, Worlds 2025 is on the horizon for League of Legends, and it will be LCK star Peanut’s last tournament before he’s forced to retire due to mandatory military service.

Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments