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Events & Standings
Competitive Ruling: Zhang "Peter Zhang" Yi
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TL;DR
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Zhang “Peter Zhang” Yi is permanently banned from any association or affiliation with a team or organization in a Riot-sanctioned competition for engaging in what we believe to be alarming and unethical behavior towards current and former TSM players and staff. Peter Zhang violated the LCS Rule Set as well as the LCS Eligibility and Release Agreement by diverting portions of player salaries to accounts belonging to Peter Zhang and his associates, by misleading and failing to fully compensate a former TSM player for the sale of the player’s car, and by soliciting loans from TSM players and staff.
CONTEXT
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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.
TIMELINE
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Peter Zhang first joined TSM as their Academy Head Coach in November 2018. He progressed through the TSM organization, ascending to the role of Head of Player Development in December 2021. Throughout his time at TSM, Peter Zhang was listed as a coach on the Global Contract Database, agreeing to and signing the LCS Eligibility and Release Agreement at the start of each LCS season. On March 18, 2022, TSM terminated Peter Zhang based on allegations of conflict of interest and unethical practices made by TSM’s players and staff members. TSM retained a third-party law firm to investigate these allegations of wrongdoing. TSM and the third-party law firm fully cooperated with Riot investigators by providing a comprehensive overview regarding Peter Zhang’s behavior while he was affiliated with TSM.
Between December 2021 and February 2022, Peter Zhang diverted approximately $250,000 in salary payments from two TSM players. The two concerned players were to receive a significant portion of their salaries through a third-party entity (“the Entity”) in China. The Entity sourced multiple bank accounts from the players in order to deposit their salaries. Peter Zhang provided the Entity with accounts supposedly on behalf of the players. However, the accounts provided were overwhelmingly affiliated with Peter Zhang. As a result, the majority of the players’ salaries were diverted to accounts owned by Peter Zhang.
In addition, evidence suggests that, during his employment with TSM, Peter Zhang shared non-public information regarding TSM’s recruiting decisions, potentially in exchange for personal benefit.
Additionally, in October 2021 Peter Zhang agreed to sell the car of a former TSM player and to send the player the full proceeds of the sale. The evidence on file indicates that Peter Zhang misled the player, at various points informing the player that he could not sell the car. In March 2022, Peter Zhang told the player that he should assume that Peter Zhang bought the car from the player for $80,000. Peter Zhang repaid $35,000 to the player. The $45,000 balance owed to the player has not yet been repaid.
Between January 18, 2022 and March 18, 2022, Peter Zhang solicited a total of eight TSM players (over which he had managerial authority) and staff members to lend him approximately $15,000. TSM became aware of Peter Zhang’s solicitation on March 18, 2022 and took immediate action to reverse pending wire transfers, preventing Peter Zhang from receiving at least $20,000 more in loans. To date, approximately $4,500 remains unpaid to the players who loaned Peter Zhang money.
During the course of investigation, Riot investigators, TSM, and TSM’s retained third-party law firm reviewed i) interviews with twelve witnesses, ii) communications between involved TSM members and Peter Zhang, and iii) bank transfer records. Finally, Riot investigators invited Peter Zhang to submit his statement on the above allegations Peter Zhang submitted a statement, but failed to provide any compelling evidence refuting the accuracy of the findings of the report submitted by TSM’s retained third-party law firm.
RULING
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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.
RELEVANT RULES
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**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.
