The idea is to create a private league when Betrayal goes live, rush through Normal/Cruel/Merciless(/Eternal) Labyrinth, receive your Emperor jewels and thus end with some 130–150c worth of guaranteed extra drops on day 1 (far more if you decide to continue playing SSF until Eternal Lab because the Mastery is super expensive), which is better than most other early-game methods of making money and doesn't actually require great skills, good luck, being a top-tier racer, having a coordinated team or unhealthy uptime—just completing Cruel or Merc Lab within the first 24h is enough to get enormous gains). In other words, anyone could take advantage of it and thus translate real-world money into in-game economic advantage more significant than buying extra tabs.
This is not mentioned in the private league FAQ. Chris didn't answer when he was asked in this thread. There's also this thread, but it's all speculation. There seem to be no public data whatsoever on how the Emperor jewels are awarded in private leagues.
This is worrying, because it could end up an oversight even if there is no intention to let it be possible. Can we have an actual confirmation from GGG staff, please?