I mean OW and LoL are not direct competition.
Maybe not today, but Dota 2 is not growing, and OWL format is pretty impressive, they have good chance to surpass LoL in the future.
It's not like all the fans only have time to watch one of the two -
The thing is, most people who watch E-sports are just teenagers, some years from now these kids will be working, marrying, having kids , they won't have time to watch both LCS and OWL.
they're two very different games with different qualities and incentives to watch, they're not like LoL and DoTA.
Why should it matter? if you are watching OWL, talking about OWL with ur friends and not about LCS then it's not good for Riot.
Riot has gone on record saying it wants eSports to grow. It's hypocritical for it to then punish a team for investing in OW.
It's obvious that by eSports they are talking about specifically League of Legends, or did you forget how they didn't let their casters stream other games, they even forced WCG and ESL some years ago to drop Dota for League of Legends, and LoL was giving more viewers so they accepted that.
I don't know where you're getting the idea that Riot gives teams money
Revenue Sharing and also when IMT gets sponsors because of their LoL team.