{"id":883038,"date":"2026-01-06T04:27:14","date_gmt":"2026-01-06T10:27:14","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/06\/gen-g-ceo-warns-lol-esports-may-be-on-path-to-financial-ruin\/"},"modified":"2026-01-06T04:27:14","modified_gmt":"2026-01-06T10:27:14","slug":"gen-g-ceo-warns-lol-esports-may-be-on-path-to-financial-ruin","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/06\/gen-g-ceo-warns-lol-esports-may-be-on-path-to-financial-ruin\/","title":{"rendered":"Gen.G CEO Warns LoL Esports May Be on Path To Financial Ruin"},"content":{"rendered":"<div>\n<p><strong>Gen.G CEO Arnold Hur<\/strong> sounded the alarm on <strong>League of Legends<\/strong> esports, claiming that Riot Games\u2019 current structure is completely unsustainable. It\u2019s at the point where teams are looking for buyers and can\u2019t get any bids.<\/p>\n<p>Bear in mind, this isn\u2019t within the ailing <strong>LCS<\/strong> either, but the <strong>LCK<\/strong> and <strong>LPL<\/strong> \u2014 the esport\u2019s most prestigious and successful leagues. While China\u2019s league not doing so well is no surprise, considering bottom teams are trying to <a href=\"https:\/\/www.esports.net\/news\/lol\/rng-and-funplus-phoenix-lpl-exits-reported-amid-major-2026-shake-up\/\">exit as fast as they can<\/a>, Korea having a rough go of things is much more dire.<\/p>\n<p>In an interview with TraYtoN, Arnold described not only the issues teams are having with staying afloat, but also the problem with how teams have adapted.<\/p>\n<figure>\n<p>\n<iframe loading=\"lazy\" title=\"On discute LCK, League of Legends, Chovy &#038; fans avec Arnold Hur (GenG) - CEO TALK\" width=\"500\" height=\"281\" data-src=\"https:\/\/www.youtube.com\/embed\/V1vU0J9a15A?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" data-load-mode=\"1\"><\/iframe>\n<\/p>\n<\/figure>\n<p>With the way things are, winning is less profitable than losing for most teams according to Arnold. What was originally meant as a Riot lifeline for teams to be able to sustain operations has become the only reason some teams are staying afloat.<\/p>\n<h2 id=\"losing-is-more-cost-effective-than-winning\">Losing is More Cost-Effective Than Winning<\/h2>\n<p>Solving the esports sustainability problem is a difficult proposition. If teams aren\u2019t winning consistently, they probably won\u2019t have fans. But if only one team can win and everyone spends big, then the entire league sinks with how high salaries have gotten.<\/p>\n<p>\u201cThe biggest problem that I see right now in League of Legends is that there\u2019s no incentive \u2013 the incentives are not aligned with you wanting to make a competitive team. I\u2019ll make more profit creating a losing team in League of Legends than I would creating a winning team. That\u2019s a messed up system,\u201d Arnold explained.<\/p>\n<p>He wants to see salary caps implemented to make the ecosystem healthier and make it easier for teams to build a competitive roster. <a href=\"https:\/\/www.esports.net\/news\/lol\/oner-extends-t1-league-of-legends-contract\/\">Unless you\u2019re T1<\/a>, it\u2019s not affordable.<\/p>\n<p>\u201cIt doesn\u2019t make sense for people just to lose money and be a competitive team to gain fans. The other option is just to not do anything, sit there, and collect a check from Riot.\u201d<\/p>\n<figure><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.esports.net\/wp-content\/uploads\/2025\/12\/HLE-1024x576.jpg\" alt=\"Hanwha Life Esports League of Legends team\"  ><figcaption>Hanwha Life Esports has spent big on several rosters only to consistently finish behind T1 and Gen.G. It\u2019s hard to imagine they make a profit. <strong>Image Credit<\/strong>: Riot Games\/LCK<\/figcaption><\/figure>\n<p>Out of Nongshim RedForce, OK BRION (previously Fredit Brion, hyFresh Blade, Brion Blade), and DN SOOPers (previously Afreeca Freecs, Kwangdong Freecs, DN Freecs), only one team has made it to Worlds: Afreeca Freecs in 2018. That\u2019s it. These teams have been at the bottom for literal years at this point.<\/p>\n<p>However, Nongshim RedForce is confirmed to be profitable. They\u2019ve been sitting at the bottom for so long that they have funds to rebound in 2026 and build a real team. BRION and DN SOOPers have gone through all these rebrands for a reason: picking up title sponsors and getting more revenue.<\/p>\n<p>There\u2019s a good chance these bottom tier teams are doing better financially than teams that consistently get 3rd-5th by just running a low-budget operation, taking tons of sponsors, and collecting a check from Riot.\u00a0<\/p>\n<p>Nongshim is taking a clear risk in 2026 signing 2021 World Champion Lee \u201cScout\u201d Ye-chan to pair with 2022 World Champion Hwang \u201cKingen\u201d Seong-hoon, so it remains to be seen if being a rare exception to the trend Arnold pointed out pays off for them.<\/p>\n<h2 id=\"more-than-just-a-paycheck\">More Than Just a Paycheck<\/h2>\n<p>Though Arnold painted a grim picture, he\u2019s got one great thing going with Gen.G: People trust them to win. According to him, he\u2019s been able to keep superstar players at a lower price than other people are offering because they have a proven track record and great support staff.<\/p>\n<p>While he didn\u2019t disclose specific details, he did say that there are other teams that offered a lot more for Kim \u201cCanyon\u201d Geon-bu than Gen.G did. Leakers claimed that at one point, Canyon was <a href=\"https:\/\/www.esports.net\/news\/lol\/hanwha-life-esports-target-gumayusi-for-lol-worlds-winning-super-team\/\">seriously considering Hanwha Life Esports<\/a>, though that never came to fruition.<\/p>\n<p>\u201cCanyon signed for a hell of a lot less than he needed to,\u201d Arnold claimed. \u201cI want to keep investing in a sport that I love. I want to keep trying to make winning rosters. Doesn\u2019t mean we\u2019ll always succeed, but right now, the incentive structure is not structured that way.<\/p>\n<figure><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.esports.net\/wp-content\/uploads\/2025\/12\/Canyon-trophy-lift-1024x576.jpg\" alt=\"Canyon lifting the trophy\" srcset=\"https:\/\/www.esports.net\/wp-content\/uploads\/2025\/12\/Canyon-trophy-lift-1024x576.jpg 1024w, https:\/\/www.esports.net\/wp-content\/uploads\/2025\/12\/Canyon-trophy-lift-300x169.jpg 300w, https:\/\/www.esports.net\/wp-content\/uploads\/2025\/12\/Canyon-trophy-lift-768x432.jpg 768w, https:\/\/www.esports.net\/wp-content\/uploads\/2025\/12\/Canyon-trophy-lift-1536x864.jpg 1536w, https:\/\/www.esports.net\/wp-content\/uploads\/2025\/12\/Canyon-trophy-lift-512x288.jpg 512w, https:\/\/www.esports.net\/wp-content\/uploads\/2025\/12\/Canyon-trophy-lift.jpg 2048w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" previous-src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\"><figcaption>Canyon is willing to stick with Gen.G for a lower amount than other teams because he trusts they can win championships. <strong>Image Credit<\/strong>: Colin Young-Wolff, Riot Games<\/figcaption><\/figure>\n<p>\u201cYou know, some of the greatest names in esports that we were hyped about? No longer there. <strong>TSM<\/strong>. <strong>100 Thieves<\/strong>. <strong>RNG<\/strong>. It\u2019s just gonna keep happening,\u201d he explained.<\/p>\n<p>It\u2019s at the point where teams can\u2019t sell their spots to anyone because no one wants to buy in.<\/p>\n<p>\u201cI\u2019ve had three different teams in Asia, even in the LCK, approach me about trying to sell their team or buy their team. They couldn\u2019t find any buyers. This is bad, man.\u201d<\/p>\n<p>While Arnold remains optimistic about the long-term potential of League of Legends as an esport, he also believes that changes are needed to put LoL esports on a path to sustainability for teams that aren\u2019t already at the top or the bottom.<\/p>\n<\/p><\/div>\n<p> Carver Fisher <br \/><a href=\"https:\/\/www.esports.net\/news\/lol\/gen-g-ceo-warns-lol-esports-may-be-on-path-to-financial-ruin\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gen.G CEO Arnold Hur sounded the alarm on League of Legends esports, claiming that Riot Games\u2019 current structure is completely unsustainable. It\u2019s at the point where teams are looking for buyers and can\u2019t get any bids. Bear in mind, this isn\u2019t within the ailing LCS either, but the LCK and LPL \u2014 the esport\u2019s most<\/p>\n","protected":false},"author":1,"featured_media":883039,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3635,359],"tags":[7231,5192],"class_list":{"0":"post-883038","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-esports","8":"category-warns","9":"tag-esports","10":"tag-warns"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/883038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=883038"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/883038\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/883039"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=883038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=883038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=883038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}