âI make more money losing than winning,â Gen.G's CEO Arnold on League's economic crisis
In an interview with TraYtoN, Gen.G CEO Arnold Hur opened up about the economic challenges of running a Korean powerhouse, the structural dysfunctions plaguing the esports ecosystem, and what truly sets Gen.G apart in today's competitive landscape.
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Arnold Hur joined Gen.G in 2017 after stints at Goldman Sachs, Boston Consulting Group, and Googleâwhere he organized League of Legends tournaments with engineers while building product features.
"Riot has cut esports costs by approximately 40% over the past two years, while LCK team salary costs have simultaneously increased"
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On December 26, Gen.G CEO Arnold Hur sat down with French streamer and former pro player Jean "TraYtoN" Medzadourian for an extensive conversation about the state of League of Legends esports, revealing candid insights about financial sustainability, roster management, and why French fans have become some of Gen.G's most passionate supporters.
In the middle of the interview, Arnold share a few transferâmarket gossips. He reveals one major name they seriously eyed but never got: âYears and years and years ago, like early days, TheShy (Kang Seung-lok) was on the list,â he says, laughing that LPL and LCK budgets were so different that âI donât think we were even closeâ. When asked the inevitable question about Lee "Faker" Sang-hyeo, he is categorical: âNo, it wouldnât make sense for him first off. Clearly heâs the face of not just T1 but also of SKT and of esports in generalâ.
The harsh economics of competitive League
Arnoldâs most striking comments are about the broken economics of League of Legends. âThe biggest problem is that there is no incentives,â he says. âI will make more profit creating a losing team in League of Legends than I would creating a winning team⊠thatâs a messed up systemâ. He insists teams share responsibility with Riot: âEvery single time everybody always wants to blame Riot but in reality all of us are to blame for itâ.
He claims Riot has slashed its esports spending while teamsâ salary bills climbed. âI think Riotâs cut their esports cost in the last two years by about 40%. LCK, the average team salary costs have gone up in those two years,â he estimates, pointing to a system where âat the high end, prices are getting out of controlâ while âat the low end people are spending less than ever and just kind of mailing it inâ. The consequences are visible: âIâve had three different teams in Asia, even in the LCK, approach me about trying to sell their team or buy their team and they couldnât find any buyers. [...] Weâre pretending like things are okayâ.
To him, the "original sin" of esports is that even a nearâmonopoly platform like Twitch couldnât make esports profitable. âHow can you own a monopoly on the entire ecosystem of esports and still not turn a profit? That is⊠the original sin of esports that we still havenât fixed,â he says, arguing that everything elseâsalary caps, coâstreaming debates, league formatsâis secondary if core content doesnât generate enough revenue.
Salary transparency, Canyon and competitive integrity
In a landscape where money doesnât add up, Arnold pushes for radical transparency. âIâm all for having public salaries of players. Letâs go do it. Iâll vote yes every single time. None of the other teams do though,â he notes, adding he would even support leagues publishing team P&Ls so âwe wouldnât have all this nonsense about stuff that just doesnât make senseâ. He attributes some resistance to executives who arenât owners and âare just like managing their P&L⊠trying to protect their jobsâ if numbers look bad versus rivals.
One of the most human moments is when he talks about Kim "Canyon" Geon-buâs deal. âIt sucks that Canyon signed for a hell of a lot less than he needed to,â he admits. âHe could have had better offers for sure⊠Iâm not going to say from where, you guys can figure that outâ. Still, he refuses to guilt players into discounts: âI donât want to have a conversation âyou like me, you like us, take less salary.â Thatâs a stupid conversationâ.
What Gen.G can offer instead, he says, is an environment: âPlayers know that thereâs a certain culture that we have that is dedicated to winning. We have a certain amount of respect for every single player that goes from top to bottomâ. Even for basic content shoots, the org asks them: âWe ask the player, like, hey, we want to do this⊠just the fact that they know they can say no already is somethingâ.
Worlds heartbreak, mental health, and treating players as adults
The loss at Worlds still lingers for Arnold. âThis one in particular really hurt,â he confesses, describing how he stayed an extra day after the elimination and âspent a full day just thinking⊠in pitch blackâ about what Gen.G needed to change. His instinct wasnât to wallow but to problemâsolve: âMy first thought is always, what do we need to do to get better?â. Out of that came a revamped approach to data, performance coaching, and how the org supports players with health and mental training.
On protecting players from toxic fans, he pushes back against the idea of total shielding. âThese are young men and young women. We need to start treating them as such and not being like, oh they just need all the protection,â he argues. You cannot âcreate some sort of artificial bubble around the playerâ given DMs and social media. Instead, Gen.G focuses on giving them tools: reframing how they read hate (âyouâre reading it in your voice⊠versus if you saw somebody crazy on the streetâ), building phoneâfree blocks, and even simple tricks like not installing Reddit or X apps to add friction.
Heâs openly frustrated by narratives that infantilize pros. âI fundamentally disagree with the idea that itâs the orgâs job to tell a player what to do,â he says. âIf you treat children like children, theyâll be children versus if you treat them like the adults they are, and give them the tools so they can be better adults, then theyâre gonna be set for lifeâ. That philosophy, he believes, is part of why players often reâsign with Gen.G even on lessâthanâmaximum offers.
âThe moment that defines Gen.G
Asked for his best memory as Gen.G CEO, Arnold doesnât pick a trophy or a big signing. Instead, he recalls a bad day when âeverything went wrong in the companyâ before a team dinner. A player, without naming him, who had left for another org and later returned came up to him and said: âMy time here at Gen.G was the most memorable, the best season Iâve ever hadâ. For Arnold, thatâs the benchmark: âIf we could do that for every player that we have⊠regardless of the results then weâve built something really specialâ.
âLooking ahead to 2026 with Canyon, Jeong "Chovy" Ji-hoon and Park "Ruler" Jae-hyuk, he hopes that season can be exactly thatââmaybe with a World Championship at the end,â as TraYtoN suggests.