On May 8th 2016, three teams lost their spots for the North American competitive scene for League of Legends. Team Impulse, Team Dragon Knights and Renegades have to relinquish and sell their spots in the NA LCS to another organization as a result.
Team Impulse: The organization was reported to have an ongoing trend of not paying their players on time and failing to sign contracts with their players. In March 2016, Riot officials conducted an audit on the team and found that there were no contracts signed with any of their current players despite having submitted documentation previously saying that they did so. Further more, the players were not paid their Minimum Player Compensations (as mandated by Riot officials for all teams) and were not paid the salaries that were initially agreed on. The MPC is stated to be $12,500 per starting player per split during the 2016 season but players could be offered more in their contracts. There were no contracts signed by TiP with their players and there is no way for Riot officials to mandate anything more than the MPC without a contract.
The organization have been given the ultimatum to sell their position in the championship series but it is up to the buyer whether they want the now organization-less ex-TiP players or not.