Gen.G CEO Warns LoL Esports Might Be on Path To Monetary Spoil

Gen.G CEO Arnold Hur sounded the alarm on League of Legends esports, claiming that Riot Video games’ present construction is totally unsustainable. It’s on the level the place groups are on the lookout for patrons and may’t get any bids.

Keep in mind, this isn’t throughout the ailing LCS both, however the LCK and LPL — the esport’s most prestigious and profitable leagues. Whereas China’s league not doing so nicely isn’t any shock, contemplating backside groups try to exit as quick as they’ll, Korea having a tough go of issues is far more dire.

In an interview with TraYtoN, Arnold described not solely the problems groups are having with staying afloat, but in addition the issue with how groups have tailored.

With the way in which issues are, profitable is much less worthwhile than shedding for many groups in response to Arnold. What was initially meant as a Riot lifeline for groups to have the ability to maintain operations has change into the one motive some groups are staying afloat.

Shedding is Extra Price-Efficient Than Successful

Fixing the esports sustainability downside is a troublesome proposition. If groups aren’t profitable persistently, they most likely gained’t have followers. But when just one staff can win and everybody spends massive, then your entire league sinks with how excessive salaries have gotten.

“The most important downside that I see proper now in League of Legends is that there’s no incentive – the incentives aren’t aligned with you desirous to make a aggressive staff. I’ll make extra revenue making a shedding staff in League of Legends than I might making a profitable staff. That’s a tousled system,” Arnold defined.

He needs to see wage caps applied to make the ecosystem more healthy and make it simpler for groups to construct a aggressive roster. Except you’re T1, it’s not reasonably priced.

“It doesn’t make sense for folks simply to lose cash and be a aggressive staff to achieve followers. The opposite possibility is simply to not do something, sit there, and accumulate a verify from Riot.”

Out of Nongshim RedForce, OK BRION (beforehand Fredit Brion, hyFresh Blade, Brion Blade), and DN SOOPers (beforehand Afreeca Freecs, Kwangdong Freecs, DN Freecs), just one staff has made it to Worlds: Afreeca Freecs in 2018. That’s it. These groups have been on the backside for literal years at this level.

Nevertheless, Nongshim RedForce is confirmed to be worthwhile. They’ve been sitting on the backside for therefore lengthy that they’ve funds to rebound in 2026 and construct an actual staff. BRION and DN SOOPers have gone by all these rebrands for a motive: selecting up title sponsors and getting extra income.

There’s likelihood these backside tier groups are doing higher financially than groups that persistently get Third-Fifth by simply working a low-budget operation, taking tons of sponsors, and amassing a verify from Riot. 

Nongshim is taking a transparent threat in 2026 signing 2021 World Champion Lee “Scout” Ye-chan to pair with 2022 World Champion Hwang “Kingen” Seong-hoon, so it stays to be seen if being a uncommon exception to the pattern Arnold identified pays off for them.

Extra Than Only a Paycheck

Although Arnold painted a grim image, he’s bought one great point going with Gen.G: Individuals belief them to win. In keeping with him, he’s been capable of maintain famous person gamers at a cheaper price than different individuals are providing as a result of they’ve a confirmed observe report and nice assist workers.

Whereas he didn’t disclose particular particulars, he did say that there are different groups that provided much more for Kim “Canyon” Geon-bu than Gen.G did. Leakers claimed that at one level, Canyon was severely contemplating Hanwha Life Esports, although that by no means got here to fruition.

“Canyon signed for a hell of lots lower than he wanted to,” Arnold claimed. “I wish to maintain investing in a sport that I like. I wish to maintain attempting to make profitable rosters. Doesn’t imply we’ll all the time succeed, however proper now, the motivation construction will not be structured that method.

“You already know, a number of the best names in esports that we had been hyped about? Not there. TSM. 100 Thieves. RNG. It’s simply gonna maintain taking place,” he defined.

It’s on the level the place groups can’t promote their spots to anybody as a result of nobody needs to purchase in.

“I’ve had three completely different groups in Asia, even within the LCK, strategy me about attempting to promote their staff or purchase their staff. They couldn’t discover any patrons. That is unhealthy, man.”

Whereas Arnold stays optimistic concerning the long-term potential of League of Legends as an esport, he additionally believes that modifications are wanted to place LoL esports on a path to sustainability for groups that aren’t already on the high or the underside.