For the past decade, European League of Legends fans have witnessed the rise of superteams and increased spending in the LEC. However, reports now suggest that this era may be coming to an end, as the league plans to implement a salary cap. According to esports journalist Alejandro Gomis, teams will have a maximum of 2 million euros for player contracts, with a luxury tax imposed on those exceeding this limit.
Sources indicate that the LEC is expected to apply a salary cap, with a spending limit of 2 million euros per team annually. Teams that surpass this cap will be required to pay a luxury tax. The luxury tax system aims to encourage teams to stay within the spending limit while penalizing those who do not comply. Teams will have to pay 50 percent of the amount spent over the salary cap, and the money collected from luxury taxes will be distributed among teams in the league, the league itself, and other tier-two regional leagues.
The introduction of a salary cap in the LEC may come as a surprise to many fans, considering the current state of the esports scene. In the past year, numerous teams worldwide have faced financial difficulties, leading to closures or significant cost reductions. The possibility of an “esports winter” has been a concern, with teams reporting substantial losses. Legacy organizations like CLG and TSM have left the LCS, and several European orgs have disbanded their Game Changers rosters in VALORANT.
Implementing a salary cap should help stabilize the LEC by preventing teams from overspending on rosters during the offseason, unless they are willing to pay a high luxury tax. While some teams may be able to afford these taxes, overall, the cap should promote better parity among the league’s ten franchised teams.
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Source: DOTESPORTS
