On a report based on South Korea’s Financial Supervisory Service disclosure on 20 April, the flagship esports competition League of Legends Champions Korea (LCK) has accumulated losses reaching 42.7 billion KRW (~$29.8 million) over the past three years. During that period, losses more than tripled from 8.1 billion KRW (~$5.6 million) in 2022 to 28.5 billion (~$19.9 million) KRW in 2024.
According to Korean news outlet DealSite, several LCK teams have been forced to consider cost-cutting measures, including staff reductions, as they grapple with the league’s financial pressures. As stopgap measures, LCK recently reduced franchise entry fees by 33%, amounting to 33 billion KRW (~$23 million) out of a total 102 billion KRW (~$71.3 million), distributed 50% of last year’s league revenue, and provided extra 13 billion KRW (~$9 million) in support, which has led to costs continuing to rise.
Riot Korea also stated that “the increased expenses last year were partly due to hosting the ‘2024 VALORANT Champions Seoul’ domestically.”
However, rising costs are not the only reason behind the financial crisis. Revenue has declined sharply during the same period, falling from 27.9 billion KRW (~$19.5 million) in 2022 to 11.4 billion KRW (~$7,9 million) in 2024 – a drop of nearly 60%.
Some of the reported key factors behind it are the loss of the Chinese market, a major blow when Huya, which held exclusive Chinese broadcasting rights since 2018, declined to renew its contract in 2024, plus high fixed costs as the league bears substantial expenses for tournament operations, venue management and broadcasting infrastructure, and franchise model struggles, as revenue-sharing payments to participating teams became an issue as finances tightened up.
The situation contrasts with the league’s prestige and audience. Recently, a match between T1 and Hanwha Life Esports at the LCK Cup 2025 reached over 1.9 million (according to Esports Charts, excluding Chinese audience) simultaneous viewers and a setting a new record for a regular stage match. According to specialists heard by DealSite, the challenge for the LCK now is to diversify its revenue streams to unlock the league’s untapped financial potential: “While production costs, labour expenses, and broadcasting equipment investments remain high, revenue streams are limited to tickets, sponsorships, and broadcasting rights,” wrote the Korean website.
