In recent months, significant disputes have occurred between the Echo Fox investors and Rick Fox himself. A new update will have a third party determine how much money each individual deserves. After Riot Games took away North American esports organization Echo Fox’s League of Legends Championship Series slot, they sold it for $33 million in total to Evil Geniuses. However, instead of the brunt of the sum of money going directly to Echo Fox, the Superior Court of California County of Los Angeles will decide.
Riot Games LCS slot sale
Rick Fox recently filed a lawsuit against Echo Fox partners Amit Raizada and Stratton Sclavos for deceptive business practices, fraud, and racial discrimination. With this development, many wondered how Riot Games would distribute the money earned from the sale of their LCS slot. A court document from Oct. 4 showed that Riot Games would pay the $30.5 million ($2.5 million goes to Riot Games for facilitation) through the court instead, a compromise agreed upon by the attorneys representing Rick Fox and those representing the investors.
This avenue does seem like it works more in Rick Fox’s favor than those of the investors. Normally, the sale of a company leads to investors making a return on their investment. However, a statement by Raizada mentions that Rick Fox never invested any of his personal money into Echo Fox. Rick Fox is the founder of the esports organization just like how Matthew “Nadeshot” Haag founded 100 Thieves. Because of this, Rick Fox should have some percentage stake. However, the investors were the ones who ultimately put money into the esports venture.
Echo Fox lawsuit
Rick Fox will be removed from his general partner position at Echo Fox on Oct. 21. This is after 80 percent of the organization’s limited partners voted to force him out because of his recent actions. Echo Fox was originally going to sell the slot to Kroenke Sports & Entertainment, but the deal died after Kroenke was sued by esports organization Sentinels CEO Rob Moore. The decision of the Los Angeles Superior Court will mark the end of the conflict, which arose after Amit Raizada was accused of racist language toward Echo Fox CEO Jace Hall.
Who do you think deserves the money? Let us know what you think, and keep up with Daily Esports for all of your League of Legends coverage.