Riot Games Breaks Up Exclusive Deal With PlayVS For High School ‘League of Legends’ Tournaments
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Riot Games just flipped the script on high school esports in a way that could disrupt one local company’s lucrative tournament organizing gig.
Until recently, the only way a high school student could play the popular multiplayer online esport “League of Legends” in school-sanctioned championships was through a Santa Monica-based company called PlayVS, which enjoyed an exclusive contract with “League of Legends” publisher Riot Games that allowed it to act as the sole provider of high school esports events for the title.
But this week, Riot made an unexpected decision to open the “League of Legends” universe up to other esports event organizers, including several nonprofits who want to run tournaments of their own. “After significant discussion, we’ve determined that the best way to set up high school esports for success is to further open, rather than narrow, avenues for competition and organic growth,” Riot said in a statement Wednesday.
This puts PlayVS in a difficult position as it struggles to ward off accusations that it has a monopoly over the amateur esports ecosystem. The company, which has raised more than $100 million in funding since launching in 2018, inked a multi-year deal with Riot Games in 2020 to be the exclusive operator of high school “League of Legends” competitions. It has struck exclusive agreements with schools in at least 23 states to run various esports tournaments, though “League of Legends” remains one of its biggest draws.
Since being officially recognized as a sport by the National Federation of State High School Associations (NFHS) in 2018, a whopping 43% of NFHS-sanctioned high schools across the country have launched esports teams on PlayVS’s platform—with company CEO Delane Parnell vocal about his goal to expand further into all 50 states. Being virtually the only game in town has allowed PlayVS to set its own pricing, charging each student player $64 per season. But with Riot’s decision likely to eat away at its market share, PlayVS could be forced to adjust its fees.
When I first spoke to Parnell back in 2018, he wasn’t focused on expanding into college esports since he thought there was more value in cornering the truly amateur high school market first. But at a dot.LA summit last April, Parnell said he was open to creating a “digital playground” where people in college or older could play. If Riot allows more competitors to flood the high school esports market, PlayVS could look to expand into college esports sooner rather than later.
PlayVS, for its part, responded to Riot’s decision by describing it as “an agreement that allows us to continue to operate the title while supporting their new goals.” Diplomatic, to say the least. — Samson Amore
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Join 500-plus entrepreneurs, executives and investors on June 23 at the Culver City Hilton for the Recurring Revenue Conference hosted by Sutton Capital Partners. Whether you are a SaaS or subscription business, or if customer retention is critical for your success, this is the premier Southern California event to learn from tech pioneers.
Discount: dot.LA readers can register with this link using promo code DOTLA229 to save over $200 on in-person attendance.
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