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ExplainerEsports Labor· 4 min read· in Gaming & Esports

The Anatomy of the 2023 LCS Walkout: How the First Esports Strike Reshaped League of Legends

In May 2023, North American League of Legends players staged a historic walkout that forced Riot Games to the negotiating table. The resulting settlement secured vital subsidies and labor protections, fundamentally altering the economic structure of tier-two esports.

By Omar Haddad

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In short

  • In May 2023, Riot Games removed the mandate for LCS franchises to field tier-two academy teams.
  • Seven of the ten franchised organizations immediately dropped their developmental rosters, eliminating roughly 70 jobs.
  • The LCS Players Association overwhelmingly voted to walk out, threatening the summer season and World Championship qualification.

The moment of realization arrived when the players who powered the broadcast realized that without them, the screens go dark. In May 2023, the North American esports ecosystem faced an unprecedented existential threat as the talent pipeline mobilized to protect its most vulnerable members.[7]

The stakes were massive. A walkout threatened not just the lucrative summer season, but North America's representation at the World Championship. For the first time in the history of competitive League of Legends, players were willing to risk their own pinnacle event to force a publisher to the negotiating table.[4][5]

The catalyst for this historic mobilization was a sudden policy shift. Riot Games, the publisher and league operator, abruptly removed the mandate requiring top-tier League Championship Series (LCS) franchises to field academy teams in the North American Challengers League (NACL).[2][6]

The immediate fallout was devastating for the developmental circuit. Seven of the ten franchised organizations instantly dropped their tier-two rosters. Overnight, up to 70 players, coaches, and managers found themselves unemployed, their careers derailed by a single administrative decision.[5][7]

The immediate fallout of the mandate removal saw a massive reduction in tier-two developmental rosters.

The financial context driving this decision was rooted in the "Esports Winter." Organizations were facing a severe market correction, struggling with reduced venture capital and shrinking sponsorship revenues. Cutting the NACL rosters was viewed by owners as a necessary measure to preserve top-tier operations.[6]

However, the LCS Players Association (LCSPA) pushed back against this narrative. The union highlighted that the average annual salary cost of an entire NACL roster represented less than 17 percent of an average LCS organization's league-based salary overhead. To the players, the cuts were an opportunistic shedding of developmental responsibilities rather than a true financial necessity.[7]

In response to the mandate's removal, the LCSPA organized a historic vote. On May 28, 2023, the membership overwhelmingly passed a motion to walk out, marking the first major labor strike in the history of franchise-model esports.[4][5]

The union laid out five clear demands. They sought a VALORANT-style promotion system between the LCS and NACL, guaranteed minimum contracts for summer finals winners, a dedicated revenue pool for tier-two teams, and provisions allowing organizations to partner with affiliates for cost-sharing.[2][4]

Riot Games responded with a hardline ultimatum. The publisher delayed the start of the Summer Split by two weeks but drew a firm line in the sand: if an agreement was not reached within that window, the entire season would be canceled.[1][5]

The threat of cancellation carried catastrophic implications. It meant North American teams would forfeit their hard-earned slots at the 2023 World Championship, a move that would damage the region's international standing and deprive players of their ultimate competitive goal.[5][7]

The two-week window became a pressure cooker of daily negotiations. Behind closed doors, representatives from the LCSPA, Riot Games, and franchise ownership engaged in intense dialogue. Meanwhile, the union successfully urged non-LCS players to stand in solidarity and refuse to cross the picket line as replacement players.[5]

The breakthrough arrived on June 8, just days before the ultimatum expired. The LCSPA announced that a historic agreement had been reached, allowing the 2023 LCS Summer Split to commence on June 14.[1][3]

While the union did not secure direct promotion and relegation, the financial concessions were substantial. Riot Games committed a $300,000 subsidy pool for the remainder of the 2023 season to support the remaining NACL teams.[1][4]

The final settlement shifted the financial burden of the developmental league toward publisher subsidies and revenue sharing.

Furthermore, the settlement established a new revenue-sharing model, guaranteeing that 50 percent of all future NACL sponsorship revenue would be distributed among the participating tier-two teams.[2][3]

The structural changes extended beyond immediate cash injections. A new Team Participation Agreement (TPA) was mandated for 2024, enforcing strict minimum standards that organizations must meet to receive payments or revenue shares from the publisher.[1][4]

Crucially, the agreement secured unprecedented labor protections. Players earning up to 1.5 times the league minimum salary were guaranteed at least 30 days of severance pay for termination without cause, while international players were promised mandated healthcare coverage upon their arrival in the United States.[3][4]

The strike proved that top-tier players were willing to leverage their own careers to protect the developmental pipeline.

The 2023 walkout fundamentally reshaped the power dynamics of North American esports. It proved that collective action could successfully challenge unilateral corporate decisions, shifting the financial burden of talent development from individual franchises to a centralized, publisher-backed model.[7][8]

Today, the strike stands as the definitive case study in esports unionization. By putting their own careers on the line, the top-tier players secured a more sustainable and equitable future for the next generation of competitive talent.[4][8]

How we did this

Method
Financial burden comparison and structural derivation.
What we found
The analysis reveals that the final settlement did not just restore funding, but fundamentally inverted the tier-two economic model: by replacing mandatory franchise-funded academy rosters (which cost less than 17% of top-tier salaries) with a centralized $300,000 publisher subsidy and a 50% revenue split, the financial liability for developing North American talent shifted entirely from the team owners to Riot Games.
What we worked from
  • NACL team subsidy pool: $300,000 — GameSpot
  • NACL roster cost as percentage of LCS salary: < 17% — Portside
Limits of this analysis
Exact dollar figures for individual LCS player salaries remain private, meaning the exact monetary value of the 17% estimate cannot be definitively calculated.

Terms to know

LCS
The League Championship Series, the top-tier professional League of Legends league in North America.
NACL
The North American Challengers League, the tier-two developmental circuit for up-and-coming players.
LCSPA
The LCS Players Association, the representative labor body for professional League of Legends players in North America.
Esports Winter
A period of economic market correction in the esports industry characterized by reduced venture capital investment and organizational downsizing.
Franchise Model
A league structure where organizations purchase permanent slots in the competition, eliminating the risk of relegation.

Questions readers ask

Why did the LCS players go on strike in 2023?

Players walked out after Riot Games abruptly removed the requirement for top-tier teams to field developmental rosters, leading to the sudden loss of roughly 70 jobs in the North American Challengers League (NACL).

Did Riot Games actually cancel the season?

No. Riot delayed the season by two weeks and threatened cancellation, but an agreement was reached on June 8, 2023, allowing the summer split to proceed.

What did the players win in the settlement?

The LCSPA secured a $300,000 subsidy pool for NACL teams, a 50% share of future NACL sponsorships, guaranteed severance pay minimums, and mandated healthcare for international players.

Different angles

Organized Labor Advocates

Viewed the strike as a necessary mobilization to protect vulnerable tier-two players from unilateral corporate decisions.

Labor advocates and the LCSPA argued that the sudden removal of the NACL mandate was a betrayal of the developmental pipeline. They highlighted that the cost of maintaining an academy roster was a fraction of an organization's overall salary overhead, framing the cuts as an opportunistic shedding of responsibility rather than a true financial necessity. To this camp, the walkout was the only way to force a publisher with unilateral control to the negotiating table.

Publisher & League Operators

Emphasized the need for economic flexibility and sustainable business models during a period of industry-wide financial contraction.

Riot Games maintained that the mandate removal was a necessary adjustment to ensure the long-term economic sustainability of the league. Amidst the 'Esports Winter,' the publisher argued that forcing organizations to fund tier-two teams was no longer viable. Their hardline stance—threatening to cancel the season entirely—was framed as a defense of the league's global competitive integrity, ensuring that only a fully operational North American circuit would be allowed to send representatives to the World Championship.

Franchise Owners

Viewed the mandatory developmental rosters as an unsustainable financial burden that needed to be cut to preserve top-tier operations.

Faced with shrinking venture capital, declining sponsorship revenues, and bloated player salaries, many franchise owners saw the NACL mandate as an anchor dragging down their primary business. For these organizations, the ability to instantly drop their academy rosters was a crucial lifeline. While they ultimately agreed to the settlement terms, their initial unanimous vote to request the mandate's removal underscored the severe financial pressures facing the ownership class.

Organized Labor Advocates 40%Publisher & League Operators 35%Franchise Owners & Industry Analysts 25%
Organized Labor Advocates
Viewed the strike as a necessary mobilization to protect vulnerable tier-two players from unilateral corporate decisions.
Publisher & League Operators
Emphasized the need for economic flexibility and sustainable business models during a period of industry-wide financial contraction.
Franchise Owners & Industry Analysts
Viewed the mandatory developmental rosters as an unsustainable financial burden that needed to be cut to preserve top-tier operations.

Perspectives this story doesn't cover

  • Tier-Two Players Who Lost Jobs
  • International Visa Holders

Sources

Source coverage

8 outlets

3 viewpoints surfaced

Organized Labor Advocates 40%Publisher & League Operators 35%Franchise Owners & Industry Analysts 25%
  1. [1]GameSpotPublisher & League Operators

    LCS Players Association Reaches Agreement With Riot Games To End Strike

    Read on GameSpot →
  2. [2]LiquipediaPublisher & League Operators

    2023 LCS Walkout

    Read on Liquipedia →
  3. [3]Esports.ggPublisher & League Operators

    League of Legends esports avoids a strike as LoL and the LCSPA come to terms

    Read on Esports.gg →
  4. [4]KotakuOrganized Labor Advocates

    League Of Legends Strike Called Off After Riot Makes Concessions

    Read on Kotaku →
  5. [5]GamesIndustry.bizFranchise Owners & Industry Analysts

    Riot Games delays LCS summer season, threatens cancellation over walkout

    Read on GamesIndustry.biz →
  6. [6]SubstackFranchise Owners & Industry Analysts

    Report: Behind The Scenes At The LCS Player's Walkout

    Read on Substack →
  7. [7]PortsideOrganized Labor Advocates

    League of Legends Players Walk Out in Historic Esports Strike

    Read on Portside →
  8. [8]Factlen Editorial TeamOrganized Labor Advocates

    Synthesis by Factlen editorial team

    Read on Factlen Editorial Team →
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