esports: Riot Games to introduce financial regulations in the LEC from 2024

Riot Games, the American publisher of the League of Legends video game and organiser of its esports circuit (LoL Esports), has announced the introduction of "sporting financial regulations" for the 10 teams that make up the EMEA Championship (LEC) from the 2024 season on 28/09/2023.

The salary cap for the five highest-value player contracts within a team must not exceed a certain threshold, set at $2m (€1.9m) per year according to the international media. Clubs that do not respect this limit will have to pay penalties of 50% of the amount they exceed, or even 100% of the amount if it exceeds 150% of the limit. Half of these penalty fees would then be paid back to the non-breaching clubs, while the other half would be invested in the development of the European Regional Leagues.

However, this luxury tax is not retroactive and will only apply to contract signatures and renewals concluded from 2024 onwards. The salaries of team staff members will not be affected by this tax.

In the competitive LoL circuit, clubs in the Chinese league (LPL) have already been subject to the luxury tax…