Despite being given 60 days to remove anyone found to have had violated the company's hate speech policies from the team's ownership group, Echo Fox was unable to reach an internal resolution.
In July, Rick Fox said that Echo Fox had reached an agreement with Kroenke Sports and Entertainment to sell their spot in the LCS for $30.25 million, more than three times the original LCS buy-in fee. Riot offered Echo Fox a one-week extension on the 60-day mediation period to complete the deal, but it ultimately fell through one week after being reported by ESPN.
Shortly after ESPN reported Kroenke's deal with Echo Fox, a Kroenke business partner working in another franchised esports league, the Overwatch League, filed a lawsuit against Kroenke. The plaintiff in the case is Robert Moore, the CEO of a separate esports entity named Sentinels that operates Kroenke's Overwatch League team, the Los Angeles Gladiators.
Moore's lawsuit claimed that Kroenke had failed to cover expenses for the Gladiators and had not informed Sentinels about the Echo Fox acquisition before agreeing to a deal. According to ESPN, Moore wants a majority stake in the Gladiators and repayment for the unpaid expenses.