Kroenke/Echo Fox deal falls apart
The chance of Kroenke taking Echo Fox’s slot in LCS is officially dead
Kroenke Sports & Entertainment has officially withdrawn its offer to purchase eSports team Echo Fox. Kroenke was going to pick up the team, and its spot in the League of Legends Championship series (LCS), as part of a restructuring deal, but Fox Echo announced last Friday that the deal is no longer table, citing issues with Kroenke. Fortunately for the squad, there are other suitors who had previously expressed interest in the team and who might be able to keep it solvent.
A statement from Echo Fox simply explained of the breakup, “Due to circumstances unrelated to Echo Fox, Kroenke Sports and Entertainment was unable to meet Riot Games’ requirements for acquiring Echo Fox’s LCS slot. With that said, Echo Fox retains the slot.”
Kroenke had arranged to pay $30.25 for the LCS slot last month. However, at the beginning of August, the company found itself the subject of a lawsuit by the co-founder and CEO of the Sentinels, Rob Moore. Moore had alleged that Kroenke’s offer to purchase Echo Fox was in violation of a verbal agreement he had with Kroenke. Moore has been working with Kroenke, overseeing the LA Gladiators for the sports company.
Echo Fox has had a lot of difficulty over the past several months. It was ordered to remove a co-founder, Amit Raizada, in May over allegations of racial discrimination and was given 60 days to fulfill the order. The deadline was extended to July 22 after the deal with Kroenke was announced, but the latest setback could case Riot Games to take action. Other companies, such as Evil Geniuses, Complexity and Dick Clark Productions through executive chairman Allen Shapiro, have expressed interest, but if they can’t reach an agreement quickly, Echo Fox could be permanently without a home.