Echo fox to sell LCS slot for $30.25 million
Riot announced through the “lolesports” twitter that Echo Fox have submitted a proposal to sell its LCS slot to another entity. Riot is currently reviewing the proposal and will meet with the proposed buyers shortly. This news follows Echo Fox’s rocky internal conflict involving Amit Raizada threatening Rick Fox and his use of racist language against another business partner.
Due to Raizada’s unacceptable conduct that breached League rules, Riot directed Echo Fox on the 15th of May to remove “any individuals whose actions violate League rules and agreements”, particularly Raizada within 60 days. This deadline was extended to the 23rd of June following Raizada’s shares in Echo Fox being transferred to a family member.
Given that Raizada had not fully been removed from Echo Fox’s ownership, Echo Fox have decided to settle the issue by selling their LCS slot to another entity.
Who will they be selling their slot to?
Sources have revealed Kroenke Sports & Entertainment are willing to purchase Echo Fox’s LCS slot for a stunning $30.25 million. This is a grand mark up considering the initial buy in fee to the NA LCS was only price at $10 million in 2018.
Kroenke Sports & Entertainment have a large hand in sports, having ownership stakes in Arsenal, the Denver Nuggets and more recently with esports, the Los Angeles Gladiators. Given the sale is approved, this will be Kroenke Sports & Entertainment’s second major venture into esports.
If Riot rejects the proposal, Echo Fox has agreed for the LCS to take over the sale proceeding regarding their LCS slot. However, the price of Echo Fox’s LCS slot will likely plummet if Riot takes over its sale, as the bargaining and negotiation will likely be more relaxed to ensure a quicker sale.