They are making private servers because they can no longer play with 5 or 4 people in high elos.
And they never flat out lied.
Guess what company's CAN change their opinions. It's why companies now a days don't talk to their customers because if they say somethings going to happen and they change their mind (which everyone is allowed to do) they get yelled at for lieing.
And if they don't say anything they get yelled at for poor clarity...
It's literally a lose/lose for the company.
And actually I bet you they don't make near as much as you think they do with the LCS.
Do you have any idea how much tournaments cost?
Between renting the venue, player salary, prize money, equipment, techs to setup equipment, marketing for said tournament, shout casters and the other little things that it takes.
Honestly I wouldnt be suprised if they said they lose money.