Gen.G CEO Arnold Hur sounded the alarm on League of Legends esports, claiming that Riot Video games’ present construction is totally unsustainable. It’s on the level the place groups are in search of patrons and may’t get any bids.

Keep in mind, this isn’t inside the ailing LCS both, however the LCK and LPL — the esport’s most prestigious and profitable leagues. Whereas China’s league not doing so nicely isn’t any shock, contemplating backside groups try to exit as quick as they will, Korea having a tough go of issues is far more dire.

In an interview with TraYtoN, Arnold described not solely the problems groups are having with staying afloat, but in addition the issue with how groups have tailored.

With the way in which issues are, successful is much less worthwhile than shedding for many groups in line with Arnold. What was initially meant as a Riot lifeline for groups to have the ability to maintain operations has develop into the one cause some groups are staying afloat.

Dropping is Extra Price-Efficient Than Profitable

Fixing the esports sustainability downside is a tough proposition. If groups aren’t successful constantly, they most likely gained’t have followers. But when just one staff can win and everybody spends huge, then the whole league sinks with how excessive salaries have gotten.

“The largest downside that I see proper now in League of Legends is that there’s no incentive – the incentives are usually not aligned with you desirous to make a aggressive staff. I’ll make extra revenue making a shedding staff in League of Legends than I might making a successful staff. That’s a tousled system,” Arnold defined.

He desires to see wage caps carried out to make the ecosystem more healthy and make it simpler for groups to construct a aggressive roster. Until you’re T1, it’s not reasonably priced.

“It doesn’t make sense for folks simply to lose cash and be a aggressive staff to realize followers. The opposite possibility is simply to not do something, sit there, and acquire a examine from Riot.”

Hanwha Life Esports has spent huge on a number of rosters solely to constantly end behind T1 and Gen.G. It’s onerous to think about they make a revenue. Picture Credit score: Riot Video games/LCK

Out of Nongshim RedForce, OK BRION (beforehand Fredit Brion, hyFresh Blade, Brion Blade), and DN SOOPers (beforehand Afreeca Freecs, Kwangdong Freecs, DN Freecs), just one staff has made it to Worlds: Afreeca Freecs in 2018. That’s it. These groups have been on the backside for literal years at this level.

Nonetheless, Nongshim RedForce is confirmed to be worthwhile. They’ve been sitting on the backside for therefore lengthy that they’ve funds to rebound in 2026 and construct an actual staff. BRION and DN SOOPers have gone by all these rebrands for a cause: choosing up title sponsors and getting extra income.

There’s a superb probability these backside tier groups are doing higher financially than groups that constantly get Third-Fifth by simply operating a low-budget operation, taking tons of sponsors, and gathering a examine from Riot. 

Nongshim is taking a transparent threat in 2026 signing 2021 World Champion Lee “Scout” Ye-chan to pair with 2022 World Champion Hwang “Kingen” Seong-hoon, so it stays to be seen if being a uncommon exception to the development Arnold identified pays off for them.

Extra Than Only a Paycheck

Although Arnold painted a grim image, he’s received one good thing going with Gen.G: Folks belief them to win. In response to him, he’s been in a position to preserve celebrity gamers at a cheaper price than different persons are providing as a result of they’ve a confirmed monitor file and nice assist workers.

Whereas he didn’t disclose particular particulars, he did say that there are different groups that provided much more for Kim “Canyon” Geon-bu than Gen.G did. Leakers claimed that at one level, Canyon was critically contemplating Hanwha Life Esports, although that by no means got here to fruition.

“Canyon signed for a hell of lots lower than he wanted to,” Arnold claimed. “I wish to preserve investing in a sport that I really like. I wish to preserve attempting to make successful rosters. Doesn’t imply we’ll all the time succeed, however proper now, the motivation construction shouldn’t be structured that method.

Canyon is prepared to stay with Gen.G for a decrease quantity than different groups as a result of he trusts they will win championships. Picture Credit score: Colin Younger-Wolff, Riot Video games

“You recognize, a few of the best names in esports that we had been hyped about? Not there. TSM. 100 Thieves. RNG. It’s simply gonna preserve occurring,” he defined.

It’s on the level the place groups can’t promote their spots to anybody as a result of nobody desires to purchase in.

“I’ve had three totally different groups in Asia, even within the LCK, strategy me about attempting to promote their staff or purchase their staff. They couldn’t discover any patrons. That is dangerous, man.”

Whereas Arnold stays optimistic in regards to the long-term potential of League of Legends as an esport, he additionally believes that adjustments are wanted to place LoL esports on a path to sustainability for groups that aren’t already on the high or the underside.