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Sporting Financial Regulations will be introduced by the LEC to support long-term stability of finances and balance in the LoL Esports Season 2024.
The LEC SFR encourages teams to keep the sum of their five highest-paid players’ salaries below a threshold. Teams that exceed the threshold will have to pay an extra fee (SFR Fee).
The LEC is attempting to achieve this by creating a financially sustainable ecosystem for its professional players, teams partnered with the league, and the League itself. This will allow all parties to grow and scale at a healthy pace and protect the ecosystem against unsustainable spending. The framework will also support the league in creating a more competitive and engaging competition. This will further enhance the experience of players and fans.
In the current economic climate we are more committed than ever to create a sustainable future in EMEA for our players, teams and the LoL Esports eco-system as a entire. LEC SFR is a way we continue to work toward our long-term goal of financial sustainability. We want to encourage teams to run more sustainable businesses in order to ensure job security for our players and to serve our fans for many decades.
SFR encourages each team to keep the sum total of salaries paid to the five highest-paid players within a range. The range includes an upper spending limit (SFR Threshold), and a lower level (SFR Floor). The lower spending limit is equal to 50% of SFR Threshold. The SFR Threshold, on the other hand, is calculated using a variety of factors, such as LEC player salaries and League Revenue Pools for the current year and the forecasted future years. It also takes into account team financial data, including revenue and expenses, and market indicators. SFR fees will be charged to teams that surpass the SFR Threshold.
Teams will receive an exception if they sign a contract before or during the 2023 LEC Season Finals. The SFR Spend is reduced to one-fifth the SFR threshold or the actual salary, whichever is less.
The first cycle will run until the end of the 2024 LEC global contract (18 November 2024).
