OverActive Media, the parent company of League of Legends franchise MAD Lions KOI, has secured a new long-term agreement with game publisher Riot Games for the LEC.
According to a release, the new deal will see a reduction in franchise payables with Riot Games eliminating $2m (~£1.57m) that was due in 2025.
OverActive Media noted that the new agreement will give the company a stronger financial position for the upcoming year.
Aside from the reduced franchise fees, the agreement is said to unlock new revenue streams, including expanded sponsorship opportunities, merchandise sales, in-game purchases and media rights. According to OverActive, the company will also gain access to Riot Games’ global network of media and sponsorship partners to increase its revenue potential.
At the time of writing, it is unknown whether other LEC teams have been given similar deals to reduce franchise fees.
Headquartered in Toronto, Canada, OverActive Media owns several franchise teams alongside MAD Lions KOI, including Call of Duty League’s Toronto Ultra and VALORANT Champions Tour (VCT) EMEA’s Movistar KOI.
Following OverActive’s acquisition with Movistar Riders and KOI this year, the LEC team will be rebranded to KOI in 2025. This was confirmed by KOI Founder Ibai Llanos during a live stream on Twitch.
Over the years, OverAcyive Media has developed a strong portfolio of partners, which include Spanish telecommunication company Movistar, car brand CUPRA, sportswear manufacturer Kappa, gaming peripherals company Razer, and blockchain company Zilliqa.
Adam Adamou, CEO of OverActive Media, commented on the new deal: “With this agreement, we have eliminated all future franchise obligations from our balance sheet and we now own 100% of our franchises without any associated liabilities.
“This long-term partnership with Riot Games reaffirms our commitment to the League of Legends EMEA Championship and strengthens our strategic position in esports. We are excited to deepen our connection with fans and partners through our continued participation in the LEC, as we focus on delivering sustainable, long-term value for our shareholders.”
