Special Feature on NA LCS League Evolution
1) Riot Games announces a new roadmap: 'NA LCS League Evolution'
2) Permanent Partnerships in NA LCS - What does it mean for Riot and the orgs?
3) Shared revenue - A virtuous cycle between organizations and Riot Gamess
4) 'NA LCS Player's Association' - How would they help the players?

The second part of Riot Game's announcement is on how Riot Games and the organizations on NA LCS will share LoL-related revenues with each other.

Esports have continued to grow rapidly, but with several top-rated players' annual salary reportedly going into six-figures, the cost of running a team also has increased as well. Aside from a very few exceptions, the esports organizations are in deficit. The situation has to be remedied for the sustainable growth of esports.

Back in September 2016, Riot Games shared their vision of present and future of LoL esports. Riot Games explained that it was their responsibility to "unlock the sport's sustainable economic future." Then, they listed several possible source of income, and how they will "increase the pie" for teams and pros.

In the previous announcement, Riot Games mentioned merchandise sale and selling in-game content as an important part of their economic plan, but they emphasized that Media/sponsorships will be a 'vital' part of LoL esports' economic future. With today's announcement, Riot Games finally confirmed that they will be sharing the revenue made from the media deal and sponsorship to the teams.

Sports broadcasting revenue and sharing the said revenue has been essential for the growth of sports. Traditional sports shared the revenue earned from selling stadium entrance fees and broadcasting to the organizations. The organizations, in turn, invest more money into the scene; leading more fans to be involved with the sports, which leads back to more broadcast revenue. This virtuous cycle is one of more prominent reason why sharing broadcasting revenue is necessary for growth.

Meanwhile, there was another notable point on Riot's announcement regarding revenue sharing. Just as Riot Games will share revenue from broadcasting and digital goods, teams are asked to share revenue from sponsorships and merchandise sales related to LoL. This can be interpreted as Riot Games wanting to be compensated for their contribution on the revenue earned by organizations, and how they see the possibility of revenue increasing overall.