LEC to introduce Sporting Financial Regulations that aims to "create a financially sustainable environment"
It will effectively be a cost cap that teams must comply with.
The League of Legends EMEA Championship has announced that it will be introducing a new set of Sporting Financial Regulations that aim to "create a financially sustainable environment for its pro players, partnered teams, and the league itself".
This will come into effect at the start of the 2024 season and will see teams having to maintain the total sum of its five highest-paid players salaries below a certain threshold, all in an effort to prevent unsustainable spending practices. The hope is that this will also improve competition around the LEC, with the FSR essentially serving as a cost cap imposed on LEC teams.
The SFR Spend will be calculated by looking at the range of spending within a team to create an SFR Threshold. This will also take into account additional things such as LEC player salaries, League Revenue Pool, team financial data, and more, and once the Threshold is in place, any team that manages to exceed it will be faced with an SFR Fee.
This fee will be half distributed to LEC teams that comply with the rule and half to the tier-two side of the EMEA LoL esports scene.
The only exception to the rule will be if a player entered into a contract with a team during or before the 2023 LEC Season Finals.