Following up on their first open letter to Riot earlier this month, H2K is now calling in another note for the League of Legends publisher to financially support EU LCS teams through revenue sharing on in-game purchases.
Why they’re unhappy: Esports teams are expensive to run. In their first letter, H2K cited that they’re currently subsidizing an additional €2 million on top of what Riot provides to run their League team, and that it’s simply unsustainable for them to continue.
What they want: An additional €6.5 million divided between all legacy EU LCS teams. Their proposal is for Riot to allow for more team-related in-game purchases to generate that revenue. According to the letter, selling 1 skin and 1 icon during the 6 weeks of Worlds has already generated €18-20 million.
Why it’s interesting: H2K’s frustration with the financial structure of the EU LCS is likely due in part to the NA LCS franchise system announcement by Riot, in which participating teams will get additional revenue via rev-sharing. There has yet to be any formal announcement to changes to the EU LCS, though there have been reports of the EU LCS splitting into multiple regions to more easily attract local sponsors.
That said, H2K is currently the only team publicly calling for Riot to change the EU LCS structure, with relatively weak leverage compared to the leaked NA LCS letter to Riot last year, which was signed by 9 of the 10 NA teams.