Luminosity has made over -6m in losses this past year or so and therefore their chances of ever entering NA Franchise is very little.
FaZe has also reported losses so we might see a massive roster shuffle towards the end of this year, after Masters 2 or even Champions.
Why is franchising good?
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Stability: Organisations have good cashflow to maintain player salaries, travel and other events related to branding.
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Eliminates organisations that are in risk of pulling out and delaying salaries to players, staff and coaches. E.g. LG, Potentially FaZe
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Return on investment (ROI): Organisations with good stability and long term commitment will gain a free spot into the franchising system and additional funding and brand equity will be provided.
Simply, the more an Organisation is seen by fans in tier 1 Valorant, the better the growth of the orgs brand value and profits, hence franchising removes bad actors and rewards good actors with monetary value to maintain their standards of committing good acts in our case; timely salaries, longetivity and hunger to improve and gradually increase the level of tier 1 val.
TLDR: Bad orgs out, good orgs maintained.
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