League of Legends Esports has announced plans to introduce a salary cap and luxury tax system ahead of the 2024 season. In an effort to promote an even playing field, the popular video game’s professional esports arm said that all teams will have to abide by salary limitations and taxation, the first of its kind in the industry.
The salary cap will be set at $15 million for both player and staff salaries combined, while teams will also be responsible for paying an additional luxury tax if they exceed the allotted salary cap. This tax system is designed to evenly distribute big-name players to all teams, not just a select few.
The introduction of a cap and tax system is a major win for League of Legends Esports and fans. With teams now competing at a more even level, the stakes and anticipation for the 2024 season are now higher than ever. It will give smaller teams a chance to become major contenders and offer incentives to local, homegrown talent who may have had trouble making the jump to bigger sponsors.
The move also marks a shift in power from owners and wealthy sponsors to the actual players. With players now assured of their worth, teams will no longer be able to poach or overpay for big-name players who can swing the professional standings. Rather, owners must invest in a larger roster and shrewd scouting in order to remain competitive in the ever-evolving esports market.
League of Legends Esports is leading the way in professional video game sports with this announcement, and it is sure to have a positive impact on the entire esports world. With new possibilities abound, the 2024 season is shaping up to be one of the most exciting seasons yet.