Rick Fox states in the interview that he purchased a controlling interest in Echo Fox from Amit Raizada on the advice of friends who knew Raizada and vouched for the deal. However, Fox noted that he found the company was in a distressed financial situation. According to Fox during the Richard Lewis Show(which was later rebutted
According to an email earlier this month that was acquired by Upcomer it disclosed the following that was written about and quoted below in a recent esportsobserver.com piece:
“According to an August 1, 2019 email acquired by Upcomer, an unidentified “major investor” disputes a majority of Rick Fox’s statements on The Richard Lewis Show, going so far as to call some “flat out lies.” The email, which was directed at the “investment group,” echoes claims by investor Amit Raizada that Fox did not put any of his own money into Echo Fox and that the real reason Riot Games pulled the LCS slot was that the team’s debt conversion was not properly cleared.
The unnamed investor also asserts that Vision Venture Partners, of which Fox is a partner, overcharged Echo Fox for “all services,” implying that this was the real reason for the team’s debt, which was owned by Twin Galaxies and controlled by Jace Hall. The email confirms Fox’s statement that investors did not feel comfortable with the team’s LCS slot going to auction, as well as Raizada’s threats against Fox’s family.
The investor goes on to claim that Fox was the original general partner but had to be removed because he was “spending money so poorly.” It was at this time, the email alleges, that Echo Fox’s operating agreement was modified to allow for future removals of general partners who were not performing.
In response to Fox’s claims that he blindly took Raizada’s help at the recommendation of friends, the investor alleges that Fox and Raizada had been best friends for many years and their business relationship spanned at least 15 years. Their relationship “went south,” the email asserts when the investor also accuses Fox of leaking Raizada’s racist comments to the media, claiming that TMZ was brought to the office. While Fox accuses Raizada of “putting a gun” to the company’s head, the investor claims that Fox “fired the gun.”
He was already in the process of trying to remove Raizada from the company. Amit, on the other hand, claims that Fox did not want to pay part of the agreed buyout and was trying to blackmail him by telling him that his email-rant would be released to the public if he continued to insist that Amit pay the rest of the agreed buyout.
To make matters worse, Echo Fox found it next to impossible to remove Amit Raizada from the company, even if Rick Fox no longer wanted him there but due to the fact that Amit Raizada owned a significant share of the company and much of the company’s revenue went through him. The lack of resolution led to Riot Games’ demand that Echo Fox sell its LCS spot due to debts and poor performance. Rick Fox says that he felt that putting the spot up for auction was the most profitable course of action. However, most investors in the company wanted to go with the Kroenke Sports, and Entertainment offer to purchase the spot for $30.25 million. In the end, Fox fought with partners stacking his best interest and then eventually after pressure from lawyers that he said was the figurative gun to the head went along with the investor’s wishes so that the didn’t screw the partners over.
The interview closes with Rick Fox offering insight into what will happen with Echo Fox in the future. He notes that while Echo Fox will still be involved in the esports industry, the company may undergo rebranding to increase its profitability. There is also the possibility that Riot Games, which controls LCS, may not approve the sale of Echo Fox’s LCS spot. If the sale is not approved, LCS will take on the responsibility of selling the slot to ensure the upcoming LCS season flows smoothly. Rick Fox also notes that, in the near future, he intends to take legal action.
While Fox offered a lot of new information on how Echo Fox has handled the ordeal with Raizada and himself things started to turn as insiders started to leak the truth about what was really happening. An anonymous investor in the company has turned heads by releasing factual statements that many of the statements that Rick Fox made in his interview were flat-out lies. The unknown source is claiming that Fox and Mr. Raizada had been friends for a very long time as previous video interviews and photos have confirmed. According to the investor, Raizada’s buyout of Echo Fox came about because of Mr. Raizada’s friendship with Mr. Fox. It was not done on account of a recommendation by a third party. What is more, the source has stated that many of Echo Fox’s financial problems were not related to Amit Raizada’s buyout of the company but rather that he was saving the company. Instead, the buyout was due to Fox’s lack of business management skills and he was using the race card as a way out.
The interview has shed some light on what has happened with Echo Fox over the last couple of months. At the same time, there is some information to indicate that not all of Fox’s statements are entirely accurate and should be taken lightly from here on out. The anonymous source suggests that Raizada and Fox were far closer friends than Fox is letting on. The friendship came to an end not because Raizada used language that Fox didn’t agree with, but because Raizada believed that Fox was responsible for leaking private details to the public. The source has also indicated that Fox was far more opposed to the Kroenke Sports and Entertainment LCS buyout deal than he initially let on. While all the details of the story are still uncertain- one can say for certain this is not the ending to the story. Rick Fox, Amit Raizada and Echo Fox are likely to be headlines in the ESports world for the foreseeable future.