Riot Games has issued their competitive ruling against TSM FTX ex- League of Legends coach Zhang “Peter Zhang” Yi. Yi was the center of controversy earlier this year over allegations of conflict of interest and unethical practices.

TSM terminated Peter Zhang March this year, accompanied with the following statement:

We were recently made aware of very serious allegations of conflict of interest and unethical practices against League of Legends coach Peter Zhang. After an initial investigation, we have terminated him effective immediately. We are working with external legal counsel to complete a full investigation.

Just last month, TSM's owner Andy Dinh also received a competitive ruling from Riot after he was investigated for bullying behavior among other things, and the organization was fined $75,000.

According to Riot's latest update on the Peter Zhang matter, Yi is “permanently banned from any association or affiliation with a team or organization in a Riot-sanctioned competition,” citing alarming and unethical behavior. The sanction is brought about by his violation of the LCS Rule Set and the LCS Eligibility and Release Agreement, as he has diverted portions of player salaries to accounts affiliated with him. Yi has also failed to fully compensate former TSM player Hu “SwordArt” Shuo-Chieh for the sale of SwordArt's car. Furthermore, Yi also solicited loans from TSM players and staff.

The Riot statement provided context, saying that “all LCS players and staff members must abide by the LCS Rule Set. Furthermore, all coaches must agree to and sign the LCS Eligibility and Release Agreement upon addition to an LCS roster. Section 14.2.10 of the LCS Rule Set prohibits behavior that violates the standards integrity set by the LCS. Moreover, Section 2 of the LCS Eligibility and Release Agreement mandates that LCS players and coaches agree to abide by standards of good conduct, fair play, and good sportsmanship. The LCS may take aggravating circumstances into account in regards to the severity of any issued penalty.”

LCS Rule Set
Section 14.2.10: League Discretion
Any other further act, failure to act, or behavior which, in the sole judgment of League Officials, violates these Rules and/or the standards of integrity established by League for competitive gameplay.

LCS Eligibility and Release Agreement
Section 2: PLAY BY THE RULES
I agree to abide and be bound by the Tournament rules, the LCS Rules and the Summoner’s Code (collectively, the “Rules”)… I further agree to take no action that is inconsistent with applicable law, the Rules and/or the standards of good conduct, fair play and good sportsmanship.

The Peter Zhang Saga

Peter Zhang began his affiliation with TSM late 2018 as the Head Coach for the Academy team. Eventually, he rose to become Head of Player Development in TSM in December 2021. He was listed as a coach on the Global Contract Database, which meant he was signing the LCS Eligibility and Release Agreement every LCS season. Earlier this year, TSM fired Peter Zhang over several allegations, and hired a third-party law firm to investigate. Riot says TSM and this third-party law firm cooperated and provided them with an overview of Peter Zhang's behavior during his tenure in TSM.

Peter Zhang has diverted the salary of two TSM players between December 2021 and February 2022, with the total amount reaching approximately $250,000. The players involved were supposed to receive their payments through a Chinese third-party entity, which Peter Zhang provided accounts on behalf of the players. These accounts were “overwhelmingly affiliated” with Peter Zhang, resulting the payments to be diverted to accounts owned by him.

From the investigation, Peter Zhang also shared confidential information about TSM's recruiting decisions. Apart from this, Peter Zhang and ex-player SwordArt reached an agreement in October 2021 where Peter Zhang would sell SwordArt's car, with SwordArt receiving the full proceeds of the sale. Peter Zhang has apparently misled the player, where he told him that he could not sell the car multiple times. Peter Zhang told SwordArt in March 2022 that the player should assume he bought the car for $80,000. The ex-coach has paid $35,000 to SwordArt, with the remaining balance unpaid.

Riot, TSM, and the third-party law firm has interviewed twelve witnesses, reviewed communications between involved TSM members and Peter Zhang, and probed bank transfer records throughout the investigation. Peter Zhang failed to provide compelling evidence to refute the findings of the report.

The official ruling from Riot is as follows:

Peter Zhang engaged in unethical behavior towards current and former TSM players and staff in violation of Rule 14.2.10 of the LCS Rule Set and Section 2 of the LCS Eligibility and Release Form. Consequently, Peter Zhang is permanently banned from any association or affiliation with a team or organization in a Riot-sanctioned competition.

For more League of Legends news, click here.