Ahri's unqualified thoughts #40

Random articles, quotes, videos, musings. Easy to consume content: 1 quote, 1 tweet/storm and 1 article/video.

In today's edition, we're featuring the massive announcement from Pudgy Penguins, and an article from LEC speaking about new salary regulations.

1 quotable thingy to look brilliant in your next young socialites’ meet-up

“What goes around comes around, and sometimes you get what's coming around." - Unknown.

1 tweet/storm to keep you up to date

The CEO of Pudgy Penguin has been dropping hints about their "Brave New World" initiative for several weeks. He was certain that his brand's undertaking was revolutionary in the web3 space, and he wasn't mistaken. Pudgy Penguin has just revealed a collaboration with Walmart, where over 2,000 stores will carry their toys. Walmart even shared the news on Twitter:

Beyond sealing a significant distribution deal for an already thriving toy line, the brand took an extra step. They launched a licensing marketplace to simplify deal-making for Pudgy Penguin holders. Additionally, they introduced a revival of Club Penguin, a hub where holders can socialize, engage in mini-games, and personalize their Pudgy, with traits to be added later.

While I'm genuinely thrilled about this news, I can't overlook the failure of 95% of the industry. LG Doucet's take on Twitter summarizes my sentiments perfectly:

1 article/video to discover something new, maybe

Last post on my blog, I discussed the challenges of achieving profitability in esports, citing the departure of TSM & CLG from the LCS as examples. I believe that one avenue toward profitability involves reducing expenses, especially when increasing revenues seems challenging given the present market and macroeconomic conditions.

Well… the LEC just introduced a salary cap rule system that aim to address these concerns, or at least start to go in that direction as a lot can be done to circumvent rules:

• LEC SFR System Overview:

  • Teams must keep the salaries (SFR Spend) of their top five players within a defined range, having both an upper limit (SFR Threshold) and a minimum (SFR Floor, 50% of the Threshold). The Threshold is determined by various factors like player salaries, league revenues, team finances, and market indicators.

• SFR Fee:

  • Teams that surpass the SFR Threshold pay 50% of the excess to the LEC as an SFR Fee. If salaries exceed 150% of the Threshold, the fee becomes 100% of the excess.

• Utilization of SFR Fees:

  • 50% of the collected fees go to compliant LEC teams, while the other 50% supports the EMEA LoL Esports tier-two ecosystem.

• SFR Exceptions and Implementation:

  • Teams get an exception for players contracted on or before the 2023 LEC Season Finals, reducing the SFR Spend. The policy starts on November 21, 2023, and the first cycle concludes on November 18, 2024.