Korean media: LCK decided to reduce the team's joining fee by 33% and adjust the profit distribution system

According to Korean media Daily Esports, LCK officials have decided to reduce the joining fees of each team by 33%.

This exemption plan is reported to have been officially finalized in 2024, aiming to ease the financial burden of the teams caused by the epidemic in the new stadium. Since the implementation of the franchise system in 2020, the first nine LCK teams have to pay 10 billion won each, and the BRO team promoted from the secondary league has to pay 12 billion won within five years. However, due to the significant decline in income caused by the epidemic, many teams have requested to postpone the payment of franchise fees. After many negotiations, LCK finally decided to partially waive the franchise fees, with a total amount of about 33 billion won.

Adjustment of income distribution system

At the same time, the revenue distribution mechanism of the LCK League will also be adjusted accordingly. According to the original system, each team can share 50% of the total revenue of the Riot Games League. Riot Games even provides an additional subsidy of 13 billion won to the teams from 2024 on the basis of maintaining the original sharing ratio.

Daily Esports pointed out that LCK will officially implement the "Global Revenue Pool (GRP)" system starting in 2025 to replace the current revenue distribution model. The new system will comprehensively consider factors such as the team's competitive performance and fan popularity to differentiate revenue distribution, while retaining part of the revenue for unified distribution.

The teams generally have a positive attitude towards the LCK's adjustments. One team representative said, "This is a realistic and reasonable adjustment." Another representative pointed out, "The amount of the franchise fee is important, but whether it can be profitable in the end is the key."