Infinite Esports reportedly owes $20 million prior to Immortals sale
This was in response to Texas Esports looking to sell its stake of Infinite Esports for at least $150 million in January. Since then, Immortals has been in a bidding war with Chris Chaney and Hector "Hecz" Rodriguz.
While this could possibly provide a way for Immortals to join the LCS, it may not be as exciting an proposition as everyone once thought. A source has told Medium that Infinite Esports has a $20 million banknote due on May 31, 2019. And Infinite Esports was allegedly not aware of this.
A promissory note is a written promise by one party to another that includes a definite amount of money to be given on a specified date. The purpose of a promissory banknote is to help raise financing from other sources besides a bank.
According to Medium's source, Infinite Esports had put up OpTic Gaming's North American League of Legends franchise slot as collateral. So if the debt is not paid by the end of May, the bank will take the LCS spot and any other projects proposed in the note.
Immortals set to announce purchase of Infinite Esports by May 31
Medium has stated that Rodriguz and Chaney offered a "laughable" amount, when put into consideration that there's already a "$20 million bill on the brand's tab."
This has made it even more likely that Immortals will instead acquire the organization. The purchase will mark the end of the OpTic Gaming brand.
Earlier in the month, Immortals had secured $30 million from investors. The very next day, they bought out Gamers Club, a Brazilian esports matchmaking service. Then the esports organization focused on OpTic, their ticket back into League of Legends and the LCS.
Immortals is well known in the esports industry for its Overwatch League team, Los Angeles Valiant, and MiBR, a Counter-Strike: Global Offensive team. The organization previously owned an LCS team as well.
In 2017, Immortals were denied a spot in the franchised LCS by Riot Games, in part as a result of the organization's committment to the Overwatch League. While many are speculating that the Infinite Esports purchase will be the Immortals' path back to the LCS, others aren't so sure.
It will also create possible issues in other gaming titles.
The Overwatch League regulations don't allow owners to have multiple teams in the OWL, which would most likely lead to the selling of OpTic's OWL team, the Houston Outlaws. Then there's the conflict of interest rules for CS:GO majors, which states that owners can't have a financial interest in multiple competing teams.
Visual Stories around the web
Immortals sell Houston Outlaws to Beasley Media Group for OWL 2020
Immortals acquires OpTic Gaming parent company in $100 million deal
Immortals positioned to return to LCS with buyout of OpTic Gaming
Immortals reportedly close to acquiring OpTic Gaming parent company
Immortals looking to buy OpTic Gaming after $30 million investment
Rogue promotes 17-year-old Inspired to LEC roster for summer split
TSM to use both Akaadian and Grig during the 2019 LCS Summer Split
SKT T1 Blank signs with Sengoku Gaming for the LJL Summer Split
100 Thieves co-owner Dan Gilbert hospitalized for stroke symptoms
Cody Sun will be joining Clutch Gaming for the LCS Summer Split
Team Liquid owner compares value of esports team with major sports
G2 Perkz on Rift Rivals: I could not care any less about Rift Rivals
Mobile League of Legends reportedly in the works from Riot, Tencent
PraY returns from retirement, rejoins KT Rolster in the LCK
Popular LOL skin developer announces departure from Riot Games
State Farm Insurance to continue with Riot Games as sponsor
G2 vs Liquid at MSI has big implications for 2019 World Championship
FlyQuest announces the new Women's Flightwear clothing line
Riot Games expanding into collegiate esports after NCAA bows out