Can/should T1 be penalized by RIOT?

LoL /r/leagueoflegends /u/BiffHardslab 800 comments

With the recent T1/LS controversy, and the news that T1 specifically allowed users use toxic/homophobic attacks (link), should RIOT take punitive action against T1? Their actions are clearly against RIOT's code (and Discord's too for that matter).

This situation seems very similar to the Echo Fox forced sale where they had an employee use racist language, and RIOT forced them to get rid of him, and when they did not, RIOT forced them to sell their team (link), so it seems that RIOT would have the authority to take action against T1.

Is this a course of action RIOT should take? The evidence seems pretty damning against T1.

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