The more reading I've done after the franchising announcement really flies in the face of that claim, and Riot is awful at making a viable Esports league for teams in the LCS.
Teams make far more on a single Smite skin or CS:GO stickers than they get from LoL icons sales.
Riot shared NONE of its sponsorship revenue with teams.
Teams were not allowed to sell merch with team sponsors logos on them, one reason teams struggled to make any sponsorship revenue on their own. (This has led to teams such as CLG and DIG being bought out by venture capitalists to stay afloat.)
Riot got belligerent with at least Reginald when he was expanding TSM into other Esports.
The prize money for DOTA2's The International winning team eclipses the entire prize pool for LoL Worlds.
Clearly, for a young organization like IMT, to get sponsors you'll have to run into the red and expand into multiple Esports to get viable sponsorship, particularly into more lucrative Esports such as CS:GO or DOTA. But as established above, Rito is a jealous lover, and aren't willing to acknowledge their greedy ways force teams to spend money in order to make money.
I've seen people claim IMT was too risky because their backers might drop them at any time. However, there are a number of LCS teams supported by rich owners...by definition, venture capitalists. Echo Fox, Flyquest, Counterlogic Gaming, 100 Thieves, Golden Guardians, Clutch Gaming....the actual majority are funded first by venture capitalists.
Furthermore, why allow in a team such as 100 Thieves? The organization only had a FPS team for half a year, then a year of nothing. No players or any roster at all in any game.
Surely at least NV, a group with a solid organization would be better, or take a shot on a competitively successful group like IMT, would be better than accepting a dumpster fire in.