Riot Games will support esports teams with Worlds ‘Virtual Pass’
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Riot Games has announced the Virtual Pass — a new effort to support the esports teams that participate in both League of Legends and Valorant.
In a blog post, John Needham, president of esports at Riot Games, discussed the company’s current and future efforts to make esports financially viable. Additionally, the post discusses how esports fit into Riot’s business strategy.
The esports industry has hit a rough patch in recent months. Teams have struggled while battling the current economic headwinds.
In recent weeks, some of the most iconic teams in League of Legends revealed how dire the situation is. The Madison Square Garden Company (MSG) sold Counter Logic Gaming (CLG) to NRG esports. Reportedly, MSG took a significant stake in NRG in lieu of cash. Meanwhile, Team SoloMid (TSM) is rumored to be selling its LCS franchise spot and pausing efforts in other esports.
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CLG and TSM had an iconic rivalry in the early days of the LCS. Losing both brands fundamentally changes the identity of the league.
The roots of this crisis can be traced back to the cost of franchising. In 2017, Riot franchised North American League of Legends esports. Teams wanted stability so they could sign long-term agreements with sponsors and players. To this day, franchised teams receive 50% of league revenues (not profits) among other benefits. Riot also continued to fund prize pools and pay a percentage of its digital esports content to teams.
However, each
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