Ex-TSM president Leena Xu reveals roster building secrets, financial priorities, and why the LCS may not be worth the investment
TSM’s Strategic Crossroads: Inside the Roster Decisions
A recent Twitch stream appearance by former TSM esports president Aileena ‘Leena’ Xu has pulled back the curtain on the organization’s internal decision-making processes, providing unprecedented insight into how roster building intersects with financial strategy in modern esports.
During commentary on Peter ‘Doublelift’ Peng’s broadcast, Xu delivered crucial context about TSM’s challenging offseason moves and the evolving business philosophy guiding one of North America’s most storied League of Legends organizations.
TSM finds itself navigating turbulent waters after years as an LCS powerhouse. The team’s competitive standing has deteriorated significantly, with current performances placing them among the league’s weakest contenders despite their historical dominance.
Compounding competitive struggles, CEO Andy ‘Reginald’ Dinh faces ongoing scrutiny from Riot Games regarding workplace environment allegations. This investigation coincides with a notable exodus of key personnel, including former general manager Parth ‘Parth’ Naidu, whose departure created strategic voids in the organization’s competitive operations.
The organization’s recent benching of support player Wei ‘Shenyi’ Zijie following an 0-4 start generated particular controversy among fans and analysts. This move appeared contradictory to TSM’s public framing of their 2022 lineup as a long-term developmental project requiring patience before yielding results.
Roster Building Realities: What Actually Happened Behind Closed Doors
Industry speculation about TSM’s roster construction reached new heights when analyst Christopher ‘Montecristo’ Mykkles suggested on Dexerto’s ‘The Jungle’ that the team’s struggles stemmed from roster decisions made by departed staff members. Leena Xu directly addressed this theory during Doublelift’s co-stream, clarifying that the current lineup “did not align with Parth’s original vision” for the team’s composition.
According to Xu’s detailed account, the 2021 offseason began with a clear priority: securing the return of legendary midlaner Søren ‘Bjergsen’ Bjerg to active play following his coaching tenure. When Bjergsen ultimately joined rival organization Team Liquid instead, TSM’s leadership pivoted to an alternative strategy.
The backup plan involved assembling a veteran North American core featuring mid laner Nicolaj ‘Jensen’ Jensen, AD Carry Yiliang ‘Doublelift’ Peng, and support Philippe ‘Vulcan’ Laflamme. However, Xu claims organizational leadership determined this established roster “failed to justify the substantial financial investment required,” leading instead to the current developmental approach.
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Financial Philosophy: The ROI Debate Shaping Modern Esports
TSM CEO Andy ‘Reginald’ Dinh contested Xu’s financial characterization through the organization’s official subreddit, asserting that her proposed veteran roster would have incurred “comparable or reduced expenses” relative to the current lineup. He emphasized that roster decisions stemmed from competitive philosophy rather than budgetary constraints.
Dinh elaborated that TSM’s management consciously adopted a multi-year competitive framework, prioritizing sustainable roster development over immediate short-term results. This three-year strategic horizon represents a significant departure from traditional esports approaches that often emphasize rapid achievement.
Xu provided additional perspective on TSM’s evolving business model during the same broadcast, stating the organization now questions “whether LCS investments deliver appropriate returns relative to capital deployed.” This fundamental reassessment of League of Legends’ economic viability signals broader industry shifts.
The former president indicated TSM’s leadership perceives greater financial potential in mobile gaming ventures and alternative esports titles than in maintaining premium LCS competitive operations. This calculated prioritization of emerging markets over established leagues contributed significantly to her 2021 departure when “organizational directions diverged” from her competitive vision.
Industry context supports this cautious approach, with Riot Games’ Head of Esports John Needham acknowledging to the Washington Post that League of Legends esports has yet to achieve profitability. This reality forces organizations to carefully evaluate competitive expenditures against potential returns.
Dinh reinforced this economic perspective in subsequent subreddit comments, confirming TSM’s overall profitability derives primarily from “non-esports assets and ventures.” While neither explicitly endorsing nor rejecting Xu’s LCS valuation assessment, his statements implicitly validate the organization’s diversified financial strategy beyond competitive gaming.
Practical Implications for Esports Organizations and Fans
The revelations from both Xu and Dinh provide valuable lessons for stakeholders across the esports ecosystem. Organizations must increasingly balance competitive ambition with financial sustainability, particularly when operating in leagues without established profitability. The tension between building for immediate success versus long-term development represents a central strategic dilemma.
For fans, these insights explain seemingly contradictory roster moves and organizational priorities. When a team benches players early in a “developmental” season or opts for unproven talent over established stars, financial calculations often influence these decisions alongside competitive considerations. Understanding this business context helps explain outcomes that might otherwise appear purely performance-based.
The mobile gaming expansion mentioned by Xu reflects broader industry trends toward platforms with lower entry barriers and potentially higher returns. Organizations like TSM that diversified early may secure competitive advantages as these markets mature, even if it means reduced focus on traditional PC esports titles.
Common mistakes organizations make include overestimating short-term revenue potential from league participation, underestimating player development timelines, and failing to adequately diversify revenue streams. Successful teams increasingly treat competitive operations as marketing and brand-building exercises rather than direct profit centers.
Optimization strategies for advanced organizations involve creating clear metrics for evaluating competitive investments, establishing multi-year player development pipelines, and building revenue models that don’t depend solely on competitive success or league distributions.
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