Echo Fox investors confirm Echo Fox is 100 percent dissolved
Olivia R. November 8, 2019
When you go to Echo Fox's website, you're met with a broken link. The organization's last tweet was sent out on September 2. Their featured jersey on their Etsy store is from 2018. Some Echo Fox fighting game competitors didn't wear Echo Fox jerseys during a recent tournament.
This has led many people within the esports community to speculate that Echo Fox has ceased operations. But there's been no official statement on the matter to confirm it, until now.
"There is no Echo Fox. It's gone," an Echo Fox investor spokesperson said to WIN.gg in an exclusive interview. "All the players were let go. The staff was terminated. The logo and uniform, they're now a collector’s item."
Echo Fox disbands after losing LCS slot
The future of Echo Fox was very shaky when the organization lost their slot in the League of Legends Championship Series. Riot Games auctioned off the slot to Evil Geniuses for $30 million, an amount lower than Echo Fox investors were planning to sell the slot for themselves.
But, according to the investors' spokesperson, former CEO Rick Fox hadn't allowed Echo Fox to be sold at the time.
"He had other things he wanted to do that would protect his interests moving forward," the spokesperson said. "Echo Fox was worth more than what it sold for at that auction. Plus, they had to keep paying everyone while this was all going on."
Instead, the organization awaited their fate as Riot Games investigated them after investor Amit Raizada's racist emails were leaked by Rick Fox. When Riot found out the team had four material breaches, including Echo Fox not having more than $5 million in liquidity available, they lost the slot.
That's when the limited partners took Fox to court and sued to have him removed as a general partner, arguing that he didn't have the best interests of the company in mind. According to the spokesperson, the judge came forward and told them that Fox would lose his position after October 20 anyway, so the lawsuit ended.
Echo Fox comes to an end
After losing the LCS slot, Echo Fox still had their successful fighting game players. This included Sonic Fox and MKLeo, both of whom had an incredible showing at EVO 2019.
Although their fighting game players were having a strong year, Echo Fox was in no position to continue paying them their salaries. According to the investor spokesperson, the organization was paying half a million dollars in operating costs each month to pay players and staff despite not having any money to their name at this point.
"All the investors had their investments put into hold by the courts because of Rick’s plans," the spokesperson said.
While the investors couldn't deny that Fox had built a "really dynamic team" and that Fox was a successful PR person, the organization seemed to struggle financially under Fox's leadership. Fox was accused of being a "walking disaster" in business for the company.
"Rick Fox is now out of a job. He's no longer part of Echo Fox. He didn't walk away with anything. His lawsuit against Raizada and Sclavos is gone," the spokesperson said.
Rick Fox did not answer a request for response from WIN.gg.
What is the future of Echo Fox?
According to the investors' spokesperson, there can only be "next steps" for Echo Fox when all of the required funds are distributed to the limited partners who are owed money. Despite being in such a dire situation, many of the partners have already indicated a willingness to get involved in esports again.
"It's an exciting area. This was just a hugely unsuccessful gig," the spokesperson said.
While building up Echo Fox is not completely out of the question, the remaining investors and shareholders know it would be a long road ahead. Reconsituting the organization would be a "whole new process," including finding new investors to assist.
Right now, there are no plan to continue the Echo Fox brand. As it stands today, Echo Fox is gone.