According to a report by The Washington Post, partners of North American esports organization Echo Fox were denied by a Los Angeles court from trying to get a temporary restraining order against Rick Fox.
The restraining order was filed in Los Angeles’ Superior Court on Friday morning by entrepreneur and venture investor Stratton Sclavos. Sclavos joined VeriSign as one of its first employees and served 12 years as CEO. He also has a large stake in Shark Sports & Entertainment, the parent company of NHL team San Jose Sharks. Sclavos created private equity firm Vision Venture Partners (VVP) with Rick Fox, former SBV CEO Amit Raizada, and Twin Galaxies CEO Jace Hall.
Sclavos alleged in the court filing that Rick Fox was not following the wishes of the other Echo Fox partners relating to the LCS slot. The judge denied the temporary restraining order request because there was no clear evidence that Fox will do any harm to the company within 60 days. Riot Games will auction off Echo Fox’s former slot to a new ownership group in September, where the judge ordered profits to go into an escrow third-party account.
In a letter also obtained by The Washington Post, eight of the partners accused Rick Fox of “willful, wanton, and intentionally destructive efforts towards the Partnership.” They blame him for the decreased valuation of the Echo Fox brand from $150 million in October to $31 million when the organization tried to sell off the LCS slot as well. Fox meanwhile says that the organization was never worth nearly as much as $150 million. The Echo Fox partners also preferred an all-cash offer from North American esports organization Evil Geniuses of $30.5 million, which Rick Fox allegedly did not want.
The former National Basketball Association player for the Boston Celtics and Los Angeles Lakers created Echo Fox after acquiring Gravity Gaming’s 2016 NA LCS Spring Split spot. Unfortunately, conflict arose in the organization when co-founder Amit Raizada used racial slurs against another investor. Riot Games tried to get the organization to solve the problem internally by removing the shareholder, but this wasn’t resolved. In the end, Riot Games decided to take back the League of Legends Championship Series franchise slot from Echo Fox.
Echo Fox was well known because of the fame of Rick Fox. Fox helped legitimize the world of competitive gaming along with his dad-and-son story of forming the Echo Fox esports organization. Do you think the organization will continue to operate with its popularity in the fighting game community?
Follower of tech startups and finance. I write about esports in my free time.