New Mechanism Launch in EMEA

On November 7, 2024, Riot Games unveiled a new Dispute Resolution Mechanism (DRM) specifically designed for its esports leagues in the EMEA region. This initiative aims to systematically address legal disputes among players, coaches, and teams within Riot Games’ Tier 1 and Tier 2 esports communities.

Independent Arbitration for Fair Resolutions

The DRM will incorporate independent arbitrators to mediate contractual and financial disputes, covering potential issues such as unpaid prize money, salaries, transfer fees, and bonuses. However, it is vital to underline that this mechanism is limited to disputes among players, coaches, and teams, excluding any direct conflicts with Riot Games itself. Riot has committed to honoring all decisions achieved through this platform, thereby fostering a neutral environment for stakeholders.

Administered by Law Firm Martens Rechtsanwälte

The Munich-based law firm Martens Rechtsanwälte will act as the Secretariat for the DRM, responsible for administering the system and appointing arbitrators to handle each case. During a press conference at the ongoing Worlds 2024 event, Riot’s Head of EMEA Esports, Alberto Guerrero, remarked that many disputes surface in the esports landscape, often complicating Riot's ability to intervene effectively. The DRM represents a pragmatic solution to bridge these gaps and maintain impartiality.

Voluntary Participation and Costs

Participation in the DRM is voluntary; parties can opt for this mechanism or pursue resolution via their respective local courts. Riot is actively encouraging the adoption of this system in player contracts through direct engagement with teams and agents. The DRM entails a Handling Fee ranging from €500 to €4,000, depending on the case's value, to cover administrative expenses. Additionally, involved parties must share an Arbitrator's Fee of €1,000 to €5,000, also dictated by the claim’s worth.

Cost-Effective Alternative

Although the costs of utilizing the DRM can be significant, Menz emphasizes that this mechanism is considerably more economical compared to national court proceedings, which can become particularly burdensome given the global nature of esports.

Legal Aid Fund for Financial Assistance

To alleviate the financial strain, Riot Games has implemented a Legal Aid Fund aimed at supporting those who may struggle to afford the dispute resolution process. Though the specifics of the fund's size remain undisclosed, eligibility criteria will guide assistance, and funds will be distributed on a first-come, first-served basis until depleted each year.

Setting New Standards in Esports

Valérie Horyna, EMEA Esports Rules and Compliance Manager at Riot Games, described this DRM as a pioneering step towards establishing trust and ensuring contractual stability within the esports community. The initiative reflects Riot's commitment to evolving and streamlining dispute resolution mechanisms, addressing the complexities of various legal systems in the EMEA region. This innovation seeks to create a more robust framework for stakeholders engaged in the dynamic esports industry.

For further details, read the original article at Esports Insider.