A source has told The Esports Observer today that the League of Legends European Championship (LEC) is deferring franchise fee payments and releasing some revenue share money to teams early in a strategic move by league owner Riot Games. According to a source, this is being done to ensure stability of the league and the organizations involved in it going forward in the midst of the financial effects caused by the novel coronavirus (COVID-19) to the global economy.
There will be no required franchise payments in 2020 as they have been deferred to 2021. Additional measures include an early release of revenue share funds that meet the minimum obligation of payments to teams of €450K ($489K USD).
It is unclear whether these same policy changes would be applied to the North American League of Legends Championship Series (LCS) or other regional leagues in the League of Legends esports ecosystem.
Owners will be meeting soon to discuss additional measures on team and league stability.
The Esports Observer reached out to Riot Games, who had no comment at this time.
Editor’s note: an earlier version of this story calculated €450K to $468K USD. The correct number is $489K USD. The story has been corrected.
