The End of the LCS: How Its Closure Could Revitalize League of Legends Esports

<p>The LCS has long been synonymous with some of the most remarkable moments in League of Legends history, making its potential departure a cause for concern among fans. However, despite the seemingly bleak perspective regarding the league’s dissolution, a transformative approach was essential to ensure the longevity and prosperity of the esports scene.

Few esports have achieved the global scale and sustained success that League of Legends has. A decade in the rapidly evolving world of esports feels like an eternity, and League of Legends has enjoyed continuous growth since solidifying its position as the premier esport worldwide, holding a significant lead over its competitors—at least for now.

When it comes to viewership, League of Legends continues to break records on the global stage. For instance, FlyQuest’s thrilling match against Gen.G during Worlds 2024 attracted over 3 million concurrent viewers, a feat usually associated only with fan-favorites like T1 and G2, who carry substantial followings.

FlyQuest 2024 — Adela Sznajder/Riot Games

However, as financial backing waned and investors recognized that esports wasn’t a guaranteed cash cow, the scene faced challenges despite the positive viewer metrics. While the financial difficulties of esports are a daunting issue globally, they have become even more apparent in the LCS due to the region’s trend of overspending and disappointing international performances.

To ensure the league’s survival and sustainability, it was clear that change was necessary. Rather than allowing the LCS to slowly diminish in value, Riot is striving to rejuvenate the Americas’ competitive landscape through the League of the Americas (LTA). In my perspective, this represents a pivotal moment for League of Legends—one that could either lead to decades of prosperity or a gradual decline into obscurity.

Riot holds a prime opportunity to enhance interest in League of Legends while minimizing their financial losses. However, this will require a shift in mindset, embracing the modern era of esports characterized by creator organizations and co-streamers.

LoL Esports Might Never Turn a Profit—and That’s Acceptable

Before delving into the urgent changes needed within the LCS, it’s important to analyze what led League of Legends esports to such a precarious situation, especially in light of the positive growth trends in overall esports viewership. How is it that the Worlds 2023 Finals could attract 6.4 million live viewers while the surrounding infrastructure struggles?

Faker lifting the trophy Worlds 2023 — Colin Young-Wolff/Riot Games

The core premise upon which the LCS—and to some degree, all League of Legends esports—was built has proven to be misleading. When franchise slots were being sold for hefty sums into the eight or nine figures, teams backed by investors entered the league with the belief they were tapping into the next big thing, anticipating profits akin to those generated in traditional sports.

However, examining traditional sports’ revenue models reveals why this dream was unlikely: broadcast rights. Unlike esports, which are freely accessible on streaming platforms, placing League of Legends behind a paywall would drastically undermine its viability as an esport.

The issue isn’t that potential viewers wouldn’t pay for it or that League of Legends esports lacks value—it’s that fans are unlikely to pay for something they’ve previously enjoyed for free. Convincing an audience to transition from free content to a paid model is virtually impossible.

Official broadcasts of League of Legends represent only a small portion of total viewership. Notably, co-streamers like Ibai, Caedrel, and Kameto dominate viewing figures during matches. It’s no surprise that Ibai and Kameto’s ownership of teams like KOI and Karmine Corp has generated significant interest—interest that would dissipate if they were unable to share the viewing experience with their followers.

Furthermore, selling advertising space becomes increasingly challenging in this environment. Many co-streamers skip ad breaks during broadcasts, thus devaluing ad placements in Riot’s events when considering the actual viewership. Co-streaming is an unstoppable force in this landscape, yet it poses a risk if Riot doesn’t devise a strategy to monetize the considerable viewership effectively.

Additionally, the esports scene plays a crucial role in maintaining League of Legends’ vitality. The aspiration to compete on a grand stage and showcase one’s skills is a cornerstone of the game’s long-standing popularity, but it presents a double-edged sword.

On the one hand, this competitive fervor sustains the game. Conversely, the overall fate of League of Legends rests on the health of its esports ecosystem. Should the professional scene falter, the game could follow suit. While viewership figures might suggest a thriving community, Riot’s approach to capitalizing on that success is sorely lacking.

Embracing Creators and Developing Narratives

League of Legends esports is unlikely to generate direct profits for Riot in the traditional sense—it’s somewhat of a financial drain. Yet, paradoxically, the competitive scene serves as an unparalleled marketing tool. Enthusiastic narratives generated by content creators do a better job of attracting new players than any conventional advertisement could.

Think about it: if you’re situated in North America or anywhere else globally, doesn’t the match between FlyQuest and Gen.G ignite a desire within you to dive back into League of Legends and join a solo queue? Witnessing a trailblazing underdog like FlyQuest’s Massu nearly seize victory encourages aspiring players to pursue their own achievements.

However, currently, there aren’t meaningful ways to express your support for FlyQuest in-game, which is a significant oversight. Well, there are some options.

Riot’s introduction of team-affiliated emotes aimed to connect the competitive scene directly with players, beyond the extravagant Worlds skins and simplistic logos. But what insight does an Ezreal emote mimicking the nerd emoji convey regarding FlyQuest? Absolutely none.

In addition to the backlash over how several of these team emotes were rolled out, they provide little to bolster the competitive scene significantly. Despite League of Legends’ essence being intrinsically linked to its professional competitions, Riot has often missed the mark in uniting narratives tied to players within the game. Their focuses on generic “event passes” and unrelated skins hardly reflect the excitement of the competitive community.

Considering that League of Legends merges major updates bi-weekly, and pro leagues adhere to these patches, it’s baffling that the game fails to feel like an integral part of its professional ecosystem—one where fans can take pride in their teams and players. This disconnect is perplexing, especially given how the teams themselves sometimes create barriers to fandom.

In conversations with figures like Disguised Toast last year, he expressed that teams lack direction in their content strategies. I concur completely. While some brands within esports hold sway, teams significantly underperform when it comes to engaging viewers with their players. If not for FlyQuest’s remarkable performance, fans may not have been incentivized to purchase related cosmetic items, thus limiting Riot’s profitability in terms of in-game assets. This shortcoming lies with both the organizations and Riot, as they struggle to cultivate genuine attachment among fans to the players for long-term marketability.

team-liquid-what-water — Colin Young-Wolff/Riot Games

APA carrying UmTi on his back

Occasionally, you’ll find standout personalities like Team Liquid’s APA, a player who possesses both charisma and skill. Yet, such instances are rare. Furthermore, many teams have undermined their potential by incessantly cycling through talent in pursuit of championships rather than nurturing a dedicated following.

In a competitive landscape where only one team can be crowned victorious, building profitability based on winning is an inherently flawed model. Most organizations venturing into this space were doomed from the start, which likely contributes to 100 Thieves’ decision to exit just as hope appeared to blossom. Many teams have exhausted their budgets, and 100 Thieves’ exit marks yet another casualty in light of reported financial challenges.

The relentless chase for talent and victories has sapped vitality from the LCS, and the LTA seems to be Riot’s first earnest effort to address the evolving realities before it’s too late. By resetting their approach and welcoming innovative strategies to engage audiences with esports content, there’s potential for a new pathway forward.

The inclusion of Disguised in the LTA North from the outset—not merely due to performance but notably for their dedicated following—suggests that Riot is recognizing the critical role of creators and co-streamers in revitalizing the scene. These individuals could help fill the void left by organizations struggling to maintain fan engagement, offering stability to the league which has been lacking.

Riot must seize this exceptional moment to abandon the outdated mentality that revolves around generating profits solely through professional leagues, a model that has long been ineffective. Embracing the core of League of Legends itself while finding ways to enhance fan support and involvement in team narratives within the game is the future.

Exploring Profitability and Learning from Valorant’s Success

Consider this scenario: Imagine if Riot set a price of $15 for an emote and player icon in standard conditions—everyone would decry such a cost for essentially two images. But what if they offered a Disguised-themed icon and emote styled in their signature stick figure aesthetic for the same price? The reception would be overwhelmingly positive.

Riot has the opportunity to elevate in-game merchandise to a similar level of popularity as Valorant’s team bundles through creative approaches.

Sentinels were near the brink of financial collapse at the beginning of 2024, but their robust brand identity and in-game cosmetics fueled their resurgence within Valorant.

Players are generally more inclined to invest in a $15 to $20 bundle than in a nearly $100 jersey. Furthermore, in-game purchases could facilitate revenue sharing between Riot and organizations, representing a classic win-win scenario. Unlike merchandise production, in-game cosmetics bear no overhead expenses, and they increase engagement among both new and returning players. A fresh player might be inspired to dive into League of Legends simply because they admire Disguised Toast, especially if they have the option to showcase that admiration in-game.

Individuals like Ludwig, who has historical alliances with Shopify Rebellion in Valorant, could also fit seamlessly into the ecosystem. While he may not excel at League of Legends, I would definitely purchase a Luddy emote to use after claiming a solo kill.

Moreover, he would make an excellent co-streamer. Including personalities who may not excel at the game can help alleviate intimidation for newcomers. The longevity of League of Legends will depend on fresh talent entering the player base and engaging with the game amid new title releases.

It is my hope that the LCS’s demise heralds a significant shift in how League of Legends is perceived within the esports landscape, transforming it into a genuine revenue-generating entity rather than just a mechanism for monetizing the game itself. I believe this transition is essential for securing the future.

This discussion regarding monetization and generating profit from significant esports moments might seem heavily corporate, but the reality is League of Legends needs to generate revenue to remain viable. Viewership and passion only carry the initiative so far in the absence of a solid financial foundation.

As the traditional sports model appears ill-fitted for League of Legends esports, a reevaluation is necessary, with the LTA seeming to pave the way for enhanced storytelling and creator involvement through guest slots and a focus on approaching content creator management.

With player salaries generally diminished, resulting in reduced overall spending, new regional rivalries are set to emerge, with North and South America regularly contesting between the LTA North and LTA South teams. Expect fans to passionately back their countrymen on either side. If Riot capitalizes on this momentum, there should be opportunities for fans to display their loyalty to their favorite teams, players, and creators within the game.

Riot has clear routes to adopt and enhance Valorant’s monetization strategies, generating revenue streams that don’t alienate consumers. We are looking at a clear way forward amid the fallout escaped from an over-reliant franchise model that proved untenable long ago.

league of legends ahri faker hall of fame — Riot Games

The path to sustainability in the League of Legends competitive scene is clearer than it’s ever been. There’s a potential for recovery in the aftermath of the industry’s recent corrections now that venture capital has diminished. Riot’s willingness to disband the LCS while acknowledging the necessity for progress is a notable indication of their commitment. Although the decision to eliminate the LCS may not visually appeal, they had to take decisive action to innovate. At the very least, the new direction may be inspired by the elements of Valorant’s successful model.

It’s better to proactively terminate a failing league than to wait for it to collapse on its own.

Unless you own a team like T1, investing $10 million in a roster isn’t going to yield a profit. Teams in the LCS should never have operated on such extravagant budgets in the first place. But with organizations within the LTA—both North and South—potentially being able to invest high six figures or low seven figures based on a blend of sponsorship revenue, in-game assets, and participation in Riot’s revenue-sharing strategies, the financial outlook seems promising.

Numerous challenges remain in establishing a sustainable ecosystem within esports. When millions of viewers can exist alongside rapid financial drain, it illustrates the deeply rooted issues within the industry.

Nevertheless, the LTA, alongside the rise of creator-led teams across various regions, offers optimism that a brighter path is possible. Riot now has the chance to harmonize the disjointed relationship between the game and its esports revenue models. It doesn’t necessitate a $130 event pass or a nearly $500 skin to satisfy the audience. Instead, providing affordable and accessible ways for fans to support teams would foster a stronger sense of engagement and loyalty.

The future of League of Legends, if it’s to endure and thrive as one of the premier competitive games globally for decades, hinges on content creators who can foster and rally support for their teams while simultaneously engaging their fanbase. It’s my hope that Riot recognizes and harnesses this opportunity as they transition past the LCS into an exciting new era of competitive League of Legends.

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Images Credit: Dexerto.com