Monte Christo rants about a comment "Riot Tryndamere" made on reddit

S04 Lurox·8/23/2016, 1:45:38 PM·5 votes·4,481 views

TL;DW from reddit:

1.)There is no way that Riot knows that LCS teams are funneling the money they earn through League sponsorships into other esports. He went and asked every team if Riot ever asked for revenue sheets. None of the teams said so. 2.)There is indeed money in esports. Monte used an example with REN made 10X as much money from CSGO stickers than from summoner icons. Businesses don't go into esports believing that they will get nothing out of it. 3.)Therefore, Riot almost certainly makes money from League tournaments. When the client pops up a window touting the latest LCS match, the people who watch the games will not be distracted from external advertisements and etc., only showing the latest skins that the pros are playing. Monte claims that Riot almost certainly has marketing data showing that the LCS dramatically increases the likelihood that players buy a skin after seeing a match. In his own words "it is highly profitable for them." While casting Worlds, Monte would have to create champion packs that would be sold in discounted bundles. There is no profit sharing. Riot gets everything. 4.)Tencent would have stopped the esports realm if it lost them millions of dollars for no reasons. It was always an option that Riot could sell the broadcasting rights to a third party for a lot of money from sponsors because "the game is huge." 5.)It's Riot's imperative, not the teams, to increase player salaries via sponsorships and etc. Why not the teams? Because teams are already paying their players a reasonable amount of money. Nobody is paid the Riot Minimum, not that Monte knows of. If teams don't spend money, they are threatened by relegation constantly. Relegation ensures high competition for good players. If Riot is concerned about pay, they should raise the stipend, as it hasn't been since 2013. The game is much bigger now than it is then. Riot made 1.6 dollars last year. 6.)Riot is the "fucked up tyrant Santa Claus" who determines who goes on the naughty or nice list. Regi is part of the nice list arbitrarily. 7.)Salaries for players doubled or tripled since the entrance of venture capitalists. Regi is certainly paying his players top dollar. Monte claims that teams are actually willing to pay their players at a loss to build a brand, placing more market power into the hands of players over their owners. The logic behind this is that teams are willing to lose a little bit of money now to make an incomparable amout later on. Monte "broke his budget" paying for his players on REN. 8.)(He goes on a sidebar) Casters. Riot was offering rates that were roughly 40 to 70 percent of the "industry rate," that which is seen in Halo, Dota 2, etc. Monte asked Riot to pay him the industry standard rate. Riot said no. That's fine. It's their prerogative. CSGO casters make twice as much as Riot casters. Monte posits that all casters should be freelance casters, basically having all of the rights that Monte has now (streaming, casting for leagues not associated with Riot, getting sponsorships, etc.) Monte made more money than any Riot caster casting alone. Riot casters have a flat salary, regardless of how much work they do. MSI and worlds is extra work. In fact, at IEM tournament, casters are basically loaned out for free by Riot. Everyone else is paid directly by ESL. Jatt, Kobe, and Deficio can't make VODs or build their own brands because of Riot. Casting is inherently a talent job, not a salary job that pays relatively little. Dota 2 casters made as much in 3 weeks at TI as Riot casters in six months. 9.)Teams are very player-oriented. Teams are not making millions of dollars of the LCS because player salaries are at the highest they've been. 10.)The patch fundamentally changed the game. Every player that he has spoken to has hated the patch. 11.)Laneswapping is a skill. Some teams actually signed players that were good at laneswaps. Rosters are locked. They are screwed. 12.)We don't know that Doublelift and Biofrost can actually compete against the best in the world. Riot doesn't know jackshit about what skill is. Riot wants League of Legends to look like solo queue, which bolsters it as a marketing tool. They don't want viewers to be confused. They want to cram League into the most efficient marketing tool to sell skins. 13.)The fact that teams are forced to cater to sponsorships takes away from practice and leisure time, making player lives worse. Riot could step up and take more of the burden by sponsoring a mouse, a headset, or a computer, but they refuse to. 14.)Monte makes the majority of his money from other esports projects. He has perspective on other esports and claims that Riot is very much out of touch with its own scene and other esports scenes.

9 Comments

Stillname8/23/2016, 3:01:01 PM2 votes

I agree about his points on Riot having to watch the business side of e-sports more closely. It is a new emerging industry that is almost entirely made up of 16-30 year old people who are still at an age where they can be taken advantage of financially so Riot really has to watch the moves they make closely.

That being said I really disagree with his arguments about the game being frozen for playoffs. League has never been a static game in its entire history. For better or worse the game has always been in a constant state of change and the lane swap shakeup is just the most recent. If worlds was a month ago people would be pointing at the Tri-force as a big change that shouldn't happen before playoffs.

If the players wanted a stable game to perfect their strategies in why did they pick league in the first place?

I do realize that the majority of my response is to a very small portion of the video but it is because I agree with the rest of his points Riot is in the position to set the industry standards for esports and they are setting one where anyone dealing with them has to go to war to get their slice of the pie.

Mazariamonti8/24/2016, 5:49:16 PM2 votes

It wouldn't be as big of a deal if relegation didn't mean losing basically your entire LoL business. The only way you can make money is off of sponsorships, and you're not going to keep sponsors if you get relegated. You need a decent amount of money to fund a challenger team, but you can't pay that amount if you have no sponsors (especially since player stipends only apply to LCS players). Look at this year's promotion tournament, the teams with chances to actually move up were Team Liquid Academy and C9 challenger, both had a primary team and brand which served to fund the challenger squad. These two teams dominated the challenger scene and no one else really had a chance.

With this environment, where you must be in the LCS to have a competitive league team, but where there is no stability with the relegation system for major investment from sponsors, a patch change which completely alters the way the game has been played for a couple years is a HUGE deal. Right now league teams are basically at the peak of how successful they can be, and the only way to improve the scene is for Riot to implement major changes to the LCS itself.

At this point either eliminate the LCS and have a sort of CS:go style where you just play in tournaments, but are free to pursue business any way you please, or actually take the time and effort to turn LCS into an actual professional sports league which is capable of expanding in ways which go beyond simply having more viewers.

Riot could monetize the League itself, which could then in turn improve stability and increase everyone's profits, as opposed to right now where the reality of the situation is that the LCS is just an advertisement for Riot and LoL themselves. If you wonder why leagues like the NBA and NFL seem to have more money than they know what to do with, and Riot is telling off team owners for not pointlessly investing an even higher percentage of earnings into the league, it's because it's not simply a matter of viewership. The difference is that the NFL is open to the idea of selling broadcasting rights, having advertisements from major corporations like Coca-Cola all over everything, basically selling out as much as possible to earn every cent that they can, which does make it back to the players and owners, and Riot is more interested in selling skins and champions. While the truth of the matter is that Riot could easily do both, they are completely sold on this idea of owning everything and having absolutely nothing which could distract the viewer from the game itself. It would be like if the NFL and the teams only made money off of ticket sales, selling replica jerseys, and streaming revenue from YouTube. A decent amount of money sure, but many levels of magnitude less than they could be making.

lccarus8/23/2016, 3:43:52 PM1 votes

Wait, is Monte banned from casting League?? I swear I hear him doing LCK all the time.

Randomonium8/23/2016, 3:48:54 PM1 votes

This was a fantastic video and I'm glad someone posted it on the forums. Monte also did some amazing videos on how e-sports teams make money and how absurd the Renegades ban was as well. Whether you agree with him or not he does make some excellent points and raises quite a few questions about how Riot does business.

PayaThePapaya8/23/2016, 4:45:25 PM1 votes

Can somebody reply to this comment so I get a notification when I get home so I can watch this video? I am currently at wor-.... I mean I'm out right now