Q&A with Riot Senior Esports Manager Chris Hopper: "We’re open to expanding beyond 10 teams"

 

On June 1st (PDT), Riot Games have announced the "NA LCS League Evolution", a new roadmap for the future of NA LCS. After the announcement, we've asked Chris Hopper, the senior manager of esports in Riot Games for more information on the announcement. In the interview, he revealed that the number of teams in permanent partnership could be expanded to more than ten, and Player’s Association (PA) will be independent of Riot from day one.


Here is the full text of Q&A with Riot Games.


Q1. Will the 'permanent partnership' be always set to 10 teams, or would the number increase or even decrease depending on circumstances?

We are currently aiming for 10 teams for the 2018 season, but are going to be flexible depending on the number of compelling applications we receive. Beyond the 2018 season, we’re certainly open to expansion, but that depends on a variety of factors like depth of competitive talent in the region, sufficient interest from prospective owners, and ensuring enough revenue in the eco-system to support additional teams.

 

Q2. In phase one of structural changes, you've mentioned "expert third parties" who will ask the teams on their plans. Can you give us more details on these third parties and why they are required in this step?

We are involving a third-party in the review of application to ensure that we have an objective and external viewpoint in reviewing applications. While we believe that we can be fair and impartial throughout our review, having an additional voice in the process can only be a positive. We do not anticipate identifying that party until the application evaluation has concluded.

 

Q3. Instead of relegation, there'll be "escalation penalties... culminating with teams losing their right to compete". We'd like to know more about the less severe penalties that would be given to teams before they are removed from the league.

Of the 32.5% of league revenues that goes to teams, a portion of that will be distributed based on regular season finish, meaning that teams that find more success will earn more revenue. Each drop in a ranking in the standings brings a lower percentage of revenue (so 7th place makes more than 8th), with the 10th place team receiving no portion of that revenue share piece (although all organizations will still receive a flat piece out of the team's revenue share to ensure financial stability).

 

Q4. How will the revenue be shared for all teams? What criteria other than league placings are there to make sure that the revenue is shared fairly even when it is not equally shared?

The 32.5%  of league revenues shared back to the teams will be split into three portions: roughly half will be distributed evenly across all teams to ensure a strong base of financial stability, while the other two pieces will be allocated based on team's regular season finish (e.g., 5th earns more than 6th) and team's contribution to league viewership/engagement.

 

Q5. You've given media deals and digital goods as examples of Riot Game's shareable revenues. Are there plans for other sources of shareable revenue?

Currently, the other big stream from Riot would be league-level sponsorships, such as our current NA LCS activation with Acer. In the near future, however, we see great opportunity to build new revenue streams with our partnered teams, which could include things like league-official jerseys or fan programs that let viewers express their fandom both in and out of game.

 

Q6. Not much information has been given out regarding the media deal after the announcement with BAMTech. What is BAMTech doing now, and can you share updates on how the partnership has been progressing?

BAMTech is working with us to prepare for the 2018 season; they are our media distribution partners, and will be helping us to monetize the league going forward. Our teams are working closely, and we look forward to them coming fully online for the start of the season.

 

Q7. We'd like to know how the 'riot-curated candidates' will be chosen to represent the players, and how you'd make sure that the players will be happy with the candidates.

On June 5 at the annual NA Player Summit, three different groups will make presentations to the assembled players about why they are qualified to spin-up and operate the PA and what services the proposed representative will offer through a PA. After the presentations, the players will have the opportunity to vote on whether they want one of those proposed representatives to operate the Players’ Association. Players also have the option to vote for none of the options. If no representative is elected, we will meet with the players to take instructions on how they’d like us to move forward (including run-off elections or curating a new slate of presenters with more direction from the players).

 

Q8. Establishing Players' Association (PA) involves "players voting as a group". Does this mean that the players are expected to reach an agreement among themselves independently? If not, how will you arbitrate players' decision?

We will look for a majority vote amongst the players to elect a representative. If there is no majority vote, we will assemble representatives from each team to take direction on whether the players want a runoff election (if two of the options were close, but not a majority) or whether the players want additional options or a different direction.

 

Q9. How will Riot Games measure that PA is financially and structurally stable enough to be independent? Will you be intervening in case the operation isn't going smoothly?

The players will have ultimate authority over the direction of the PA. We expect that other than Riot’s funding obligation, the PA will be independent of Riot from day one. If the players and the PA determine that the players will directly fund the PA in the future, we will acknowledge that decision and cease Riot’s funding of the PA. The only term Riot will insist upon is a clear method for the players to remove their representatives in a situation where the operation of the PA is not moving forward in the manner the players expect.

 

Q10. For what situations will you meet with both players and owners at the same time, and how much voice will PA have in those tri-party negotiations?

Our hope is that we (the players, owners and Riot) are making decisions about the NA LCS collectively, starting this off-season. We expect all parties to be involved in helping to determine the best way to move forward across a variety of league operational issues. We do not want to turn the process into a political body where we are making speeches and taking votes, but intend to function more in a corporate context where we are all aligned and moving in the same direction with the same ultimate goals in mind.

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