League of Legends is franchising, North American teams go for $10M

From Polygon.com

The North American League of Legends Championship Series (NA LCS) has, since its inception, featured a variable slate of teams. That changes this summer, as Riot Games has begun the process to convert to a franchise model.

Only a fixed number of NA LCS teams will have the opportunity to become permanent franchises, which must be purchased at a cost of $10 million. Exactly which teams are in and which are out will be determined with the help of “expert third parties.” Riot is looking for “stable, professional, well-funded and committed” organizations that are “committed to creating a rewarding environment for the pro players that work for them.”

After the final selection process, the NA LCS will have the same slate of teams every season. With luck, this will help them to secure more stable and consistent advertising partners.

Riot is also introducing revenue sharing, a process by which every team in the league will profit from each other’s success.