Cloud9 fined for violating League of Legends equity rule | The Loadout

Cloud9 fined for violating League of Legends equity rule

Cloud9 LoL team

Riot Games has fined Cloud9 $175,000 for violating League of Legends rules after the organisation issued stocks to seven players last year. The official competitive ruling comes after Cloud9 failed to notify or declare them to the League.

The North American organisation had signed new contracts or contract extensions with the seven players over a 16-month period, in which it was discovered some players were given stocks for a smaller salary, and others were gifted them. In any case, only two of the seven players involved in the stock sharing system had their lawyers review the process.

In November 2017, Riot created a new League rule which prevented players from owning shares in the organisation they compete for. As the above is a clear violation of this rule, Cloud9 will be fined $25,000 per player, and ordered to pay players for their stock units, or renegotiate their contracts.

With that in mind and the fine, Riot estimates Cloud9 will have to pay between approximately $330,000 and $605,000.

A new rule was also brought in last month, which allows players with more than three years consecutive service to a team be eligible to own stocks.

You can read the full investigation report here.