LoL: The LCK records a 42.7 billion KRW deficit between 2022 and 2024

The League of Legends Champions Korea (LCK), long regarded as a reference for esports excellence, is now under increasing financial pressure. According to recent disclosures reported by DealSite, LCK Corporation has accumulated a net loss of 42.7 billion KRW over the past three years. The annual deficits have significantly escalated—from 8.1 billion KRW in 2022, to 13.2 billion KRW in 2023, and 28.5 billion KRW in 2024. Meanwhile, revenue has nearly halved over the same period, dropping from 27.9 billion KRW to 11.4 billion KRW.

Behind the numbers lies a combination of high operational costs, limited revenue streams, and structural challenges within the franchise system. As the financial strain deepens, questions are emerging about the long-term sustainability of Korea’s premier esports league.

Introduced in 2021, the LCK's franchise system aimed to provide stability for teams and unlock new revenue-sharing opportunities. However, with the league responsible for every aspect of operations—from venue management to broadcasting—the financial burden has grown significantly. High fixed costs, combined with mandatory revenue distribution to participating teams, have created a rigid structure ill-suited to the league’s current income levels.

In response to the ongoing financial stress, LCK Corporation reduced franchise entry fees by 33% in 2024, cutting its projected revenue by 33 billion KRW. Additionaly, 13 billion KRW in financial support was distributed to teams last year, highlighting the urgency to stabilize team finances.

Industry observers point to a deeper concern: the LCK’s revenue streams remain too narrow. Ticket sales, domestic sponsorships, and broadcast rights form the core of its income, but they are proving insufficient in offsetting growing expenses. Meanwhile, major international sponsorships and media deals are typically handled by Riot Games’ global headquarters, limiting local revenue opportunities for LCK Corporation.

Despite its prestige and global fanbase, the LCK finds itself at a crossroads. Its ability to adapt both financially and operationally will be crucial to ensuring its long-term viability. As esports continues to expand worldwide, the LCK’s situation reflects a wider challenge: finding profitability in a scene still shaped more by passion than a sustainable business model.