H2K threatens to quit EU LCS unless revenue sharing plan is put in place

London-based esports organisation H2K has again threatened to quit the EU LCS unless Riot makes changes to more closely mirror the franchise system used in the US.

Earlier this month H2K claimed to be subsidising its League of Legends team to the tune of €2m a month. Now it has called for a further €6.5m to be divided between EU LCS teams by means of revenue sharing from in-game purchases. 

Indeed, it claims that the sale of just one skin and one icon throughout the duration of the Worlds generated anything up to €20m.

“We believe the EU LCS requires an open and transparent collaborative effort among RIOT, the teams and the players based on their mutual best interests,” the letter, signed by both CEO Susan Tully and board co-chairman Richard Lippe, said.

“Rather than an open and transparent ecosystem, we have confidentiality and lack of information. Rather than having a collaborative effort, we have RIOT making all significant decisions, while largely ignoring the informed views of the teams and players. Rather than the ecosystem providing for the mutual best interests of all the participants, the teams are forced into financially weak positions while creating player instability and uncertainty.

“To make it succeed, with the existing teams (“legacy teams”) no longer subsidizing RIOT, and to have their committed involvement in Europe, it merely requires RIOT to provide the legacy teams collectively with a guaranteed yearly increase of approximately €6.5 million. The legacy teams should be the beneficiaries of such guaranteed support because of their prior multi-million dollar investments in the EU LCS, their continuing branding and promotion of League of Legends, and the commitment of many thousands of hours of management and owner time to the success of the teams, players and the EU LCS.”