Riot Games Announces LEC Salary Cap and Luxury Tax
Riot Games has officially announced that the LEC will be introducing strict financial regulations called Sporting Financial Regulations (SFR),
Riot Games has officially announced that the LEC will be introducing strict financial regulations called Sporting Financial Regulations (SFR), such as a salary cap and a luxury tax for the 2024 esports season.
Riot explained that the new regulations are intended to create “a financially sustainable environment” for all parties involved — the players, the teams, and the league itself — and protect the space from “unsustainable spending practices.”
Riot is hopeful that this new system will level the playing field in the LEC, which is much needed as there have been only four different esports teams winning since its inception back in 2019 with G2 Esports wining two-thirds of the titles within the league.
“In the current economic climate, we are dedicated more than ever to creating a sustainable future for our players, teams, and the LoL Esports ecosystem in EMEA as a whole,” said Maximilian Peter Schmidt, Director of League of Legends Esports, EMEA, per the official announcement.
“The LEC SFR, which will come into effect from the beginning of the 2024 Season, is one way in which we’re continuing to work towards our goal of long-term financial sustainability. By doing this, we aim to encourage teams to operate more sustainable businesses to provide job security for players and ensure we serve our fans for decades to come.”