The State of Tier 2 VALORANT
The Future of Tier 2 VALORANT Hangs in the Balance
The Tier 2 competitive scene in North America is facing a critical decline across both Challengers and Game Changers. Shrinking participation of top talent, diminishing organizational investment, and deficient structural support have made the ecosystem unstable. At the heart of these issues lie systemic challenges including an overemphasis on financial independence and a lack of unconditional support from Riot Games. We believe there are multiple paths to revitalization, but the key to saving the North American competitive scene is a committed, joint effort to address these underlying problems and reinvigorate the Tier 2 ecosystems.
The Problems
Stability
One of the primary challenges facing Organizations in Tier 2 is the absence of incentives to remain invested year-round. The ROI is minimal to non-existent and Riot has consistently expressed a lack of interest in providing financial stimulus to struggling teams as highlighted in various interviews with Riot leadership.
The goal of obtaining a guest slot in the VCT has proven insufficient to maintain consistent Tier 2 participation with most organizations unable to justify the investment required. Shortened seasons and schedules designed to minimize disruption rather than maximize competition exacerbate this issue. It is more difficult than ever for organizations to commit resources. Minimal prize pools and the absence of a revenue-sharing model leave organizations with a single, high-risk, incentive to compete. A structure designed for risk-takers drives away good operators in favor of bad actors and further disincentivizes participation.
Third-party tournaments, once a talent showcase and potential revenue stream for Organizations and free-agent teams, are now scarcely viable due to restrictive event policies. The result is a gradual withdrawal from the scene, as the investment risk significantly outweighs the potential rewards.
Engagement
Unengaged viewership further compounds these problems. Few viewers are connecting with these products that disappear for half the year only to return with a completely different set of organizations and players. Viewership will continue to decline without compelling narratives and recognizable talent. While watch parties have helped attract new audiences and expand the player base, they remain an unregulated, temporary fix for the broader challenge of audience engagement.
Scheduling
Challengers, Game Changers, and Premier teams lack a cohesive and beneficial schedule structure that would further enable their success. Overlapping matches and an unclear route for success have left players feeling disregarded.
There were slight efforts made this year to expand the competitive calendar, but the lack of a year-round competitive scene diminishes fan engagement and reduces overall interest in Tier 2 matches. Allowing the scene to operate in an open competitive system would deliver more substantial team efforts compared to the current Premier to maybe join Challengers and to maybe Ascend pipeline. The only thing to play for right now is a gamble.
Collegiate System
The collegiate system remains underutilized as a pipeline for developing talent and fostering long-term engagement. There is a gap between amateur and professional levels because collegiate play is not integrated into the broader competitive ecosystem. Collegiate esports could serve as a functional bridge to Tier 2 (and thus Tier 1) that would boost player development and organizational investment. Collegiate systems also help solve equity issues; players who cannot financially support themselves or their families have long used college sports to develop other career opportunities while attempting to secure a future as an athlete. The same opportunities can exist for esports players.
Effects
The shrinking Tier 2 scene effectively cuts the blood supply of talent and storylines necessary to sustain the greater competitive ecosystem. Without a robust Tier 2 scene, there will be a lack of new talent feeding into Tier 1. Compelling narratives that drive fan engagement will be lost, and the future of Riot esports in North America will diminish.
In contrast, successful sports leagues in the United States, such as the NBA’s G League or the MLB’s minor leagues, thrive on the symbiotic relationship between their Tier 1 and developmental leagues. These leagues are the R&D of US sports because they are an investment in the future health and success of the league first and foremost - revenue is a bonus, not an imperative. These leagues also benefit from robust collegiate systems that serve as conduits for emerging talent.
Riot Games has prioritized profitability and viewership as core KPIs for its Tier 2 leagues, unlike traditional sports leagues where profit and fan engagement are byproducts of expansion and augmentation. This approach has stifled growth resulting in diminished investment from organizations, fans, and players. A fundamental change in approach is needed before more damage is done.
Solutions
To reverse these trends and revive the Tier 2 ecosystem, the following solutions are proposed to Riot Games:
Revenue Sharing: introduce revenue-sharing models, such as skins and marketing incentives to provide a steady income stream for Tier 2 organizations and strengthen player wages.
Year-Round Event Calendar: Open up a comprehensive, year-round event calendar to ensure consistent competition and organizational investment.
Finder’s Fees: Incentivize talent development by introducing significant financial rewards for organizations that develop and promote players to Tier 1 teams.
Player NIL Program: codify protected categories for players to pursue their own Name, Image, and Likeness (NIL) deals so they may achieve financial stability in exchange for building their own brands.
Mandatory Development Contracts: Require Tier 1 teams to establish development contracts with Tier 2 players to subsidize roster costs while ensuring Tier 1 teams support the growth and development of emerging talent.
Media Accessibility and Coverage: invest in the league's future stars by producing mini-documentaries, personal articles, and other content that highlights the inspirational stories behind Tier 2 players and teams.
Cash Injections: provide financial support through prize pools, performance bonuses, and organizational stimulus to make Tier 2 participation more viable and appealing to investors.
Subsidize Scholarship Programs: invest in scholarship programs to strengthen the collegiate system creating a more robust pipeline of talent into Tier 2 and beyond.
Joint, Temporary Training Camps: contribute matching funds for joint boot camps for Tier 1 and Tier 2 teams to enhance competition and skill development.
Offline and Cross-League Tournament Portions: Introduce offline mid-season events or playoffs to increase competitive integrity and viewer engagement. Allow Game Changers and Tier 2 teams to showcase their skills against the top players.
Conclusion
A Call to Action
The challenges facing the esports ecosystem in VALORANT are significant, but not insurmountable. We can revitalize the scene together by addressing the issues of stability, fan engagement, and collegiate development through the implementation of targeted solutions. Incentivizing investment and enhancing the competitive product will reform the Tier 2 ecosystem and restore the long-term health and sustainability of NA VALORANT. Riot Games must commit to structural reforms and financial support that prioritizes the long-term growth of the Tier 2 ecosystem. By embracing a developmental approach similar to that seen in traditional sports, Riot Games can create a thriving, sustainable pipeline of talent and storylines that will drive the future of North American esports.
