According to ESPN, the slot is set to sell for $30.25 million. The deal is awaiting approval from the LCS, but either way, Echo Fox will be out of the LCS picture.
The troubled esports organization was given a 60-day notice to remove Amit Raizada from ownership due to his racist language used against a business partner. They were given an extended deadline to July 23, the date Kroenke Sports & Entertainment set their proposal.
LCS Commissioner Chris Greely has mentioned that Echo Fox has submitted their proposal to sell their LCS slot a new investment group (KSE) whom they should be meeting within the next couple days. If that proposal is denied, Echo Fox will have to forfeit the sale process to the LCS.
“Our goal is to make sure we have an orderly transition and a new team ready for the 2020 season,” Greeley said.
The $10 million franchise fee Echo Fox owes to Riot is only halfway paid, according to ESPN. The remaining $5 million debt will be paid over the next few years.
Josh Kroenke, son of Walmart and Kroenke families, has pushed for KSE’s involvement in esports. Kroenke Sports & Entertainment already currently own Overwatch League team Los Angeles Gladiators. The private holding company also owns big-name traditional sports brands including the Los Angeles Rams, Denver Nuggets, Colorado Avalanche, Arsenal F.C., Colorado Rapids, and the Colorado Mammoth.
They are just one of many giant sports entities getting themselves involved in esports, including Patriots owner Bob Kraft, Philadelphia 76ers and more.
This feature was covered on the Esports Minute podcast by Esportz Network — available on all podcasting platforms.
Credit: Mitch Reames & Mitch Marowitz