In 2019 revenue sharing, franchising licenses and a minimum player salary increase are coming to the European League Championship Series, Riot Games announced on Wednesday.
EU’s franchising model looks very similar to North America’s. Teams will go through an application process, and successful applicants will purchase a spot in the league. With their spot they will enter a revenue sharing agreement with the league. In this agreement, players will receive 35 percent of revenue to cover their salaries. The teams and Riot Games will get 32.5 percent each.
The base player salary will be increased to €60,000 per year (around 74,000 USD). The current stipulate that a team must pay a player or coach on the active roster €2,000 per month. Players on the substitute roster must be paid at least €450 per month, with a guaranteed €400 gross for each week they play at least one LCS game.
Relegation will be completely removed, and the focus will be on keeping organizations in the league long-term in order to build fanbases. There is no mention of the base-length of the franchising agreement.
There is no mention of a buy-out plan for the teams that are currently a part of the league but do not secure a franchised spot. During the North American franchising process, such teams were financially compensated for their departure.
During the North American franchising process, a spot in the league cost $10 million for existing teams and $13 million for new teams.
source: theScore esports