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Sources: Phoenix1 and Team Envy League Championship Series franchise applications denied

LoL ESPN

Phoenix1 and Team Envy have been declined entry into the 2018 North American League of Legends Championship Series, sources close to those teams and the league told ESPN.

Phoenix1 and Envy were notified by Riot Games last week that their applications for a franchise spot in the restructured league were declined, sources said. Reasons behind Riot's decision were not disclosed.

Both teams will be entitled to compensation that will be made up of a pool from $3 million buy-ins paid by new teams entering the league. Each split that teams participated in the League Championship Series is worth three shares from that pool, with Phoenix1 and Envy both participating in three splits in the summer of 2016 and the entire 2017 season for a total of nine shares each. The total amount paid will be determined once the league is locked in.

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