As it stands, it seems as if things are far from being over with the Echo Fox drama between Amit Raizada and Rick Fox. Amit Raizada has responded to the claims that have been sweeping throughout the eSports community and from all indications, the Amit Raizada Rick Fox story deepens as an investor comes forward touting that Rick Fox had been lying for his own financial game and using the race card as blackmail against Raizada. After seeing this and the videos that Fox has released, it seems like there will be no end to this epic drama any time soon.
Last week, Rick went on the Richard Lewis show to talk about the challenges the organization has been facing behind the scenes. Following the interview, Amit Raizada has commented on what was said, accusing Fox of not putting any money into the team, among other things which came out discrediting him.
In an interview conducted by Upcomer, the investor, who has been constantly lambasted over the past several days, came forward acknowledging the racially charged comments he made earlier in the year towards Jace Hall. He has since stated that he was completely wrong for making those statements and has apologized to Jace for what he has done and Hall accepted his apology and has moved on.
In addition, he also pushed back against comments made by Rick Fox against him. In his statement he said that the two had, without a doubt, been friends from a long time. He mentioned videos in which Fox has stated that he has asked Raizada for advice a number of times over the last 17 years.
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He went on to further mention how absolutely no money had been put into the Echo Fox team by Rick Fox. He said that it was himself and Khalid Jones who each put in millions of dollars to take the necessary steps to start off the team following the sale of Gravity’s spot in the LCS.
It has also been said that Rick Fox did not even have any interest in being involved with the company until the brand was valued by Forbes at $150 million. At that point, it is reported that a number of investors went fishing for buy outs.
It has been said that Raizada was included among those who were approached and the rationale was that there were apprehensions over the ability of Rick Fox to effectively run the organization. In particular, Raizada suggested an asking price of $10 million to anyone who wanted to buy him out of his shares.
After getting the backing of two companies, Fox was able to come up with the first $5 million and then Raizada stepped in and financed the other $5 million. It is more than a little bit strange to finance someone who is buying you out of an organization; however, if this is true, he must have really wanted out of the company.
According to his account of the situation, when it came time to pay back that second $5 million, this was when the infamous emails that were sent to Jace Hall were released for the public to see.
In the interview, Amit took the opportunity to apologize again for the racist remarks that were made toward Hall; however, he has said that his reason for that kind of eruption was that Hall had carelessly squandered away $30 million on quite a few business dealings that were poorly thought out. He went on to say that the poor business decisions included the disastrous H1Z1 Pro League and the enormous quantity of fighting game players that had been bought.
While it is understandable that he was upset over millions of dollars being squandered on unprofitable ventures, that is definitely not an excuse to act out and not an excuse for Fox to call TMZ for 15 minutes of fame. All around wrong and immature moves by both parties.
Moving away from the racism accusation, it is essential to point out that Amit Raizada mentions that no money at all is being made off their FGC players. This is significant because the FGC players make up a majority of the organization after they were booted from the LCS.
Going back to the emails in question, Raizada has claimed that their release was a part of a grand blackmail scheme perpetrated by Rick Fox to force Raizada to waive the $5 million that was owed to him by Fox; this accusation is a rather damning one. In addition, he has also claimed that Fox has threatened to drag family members of Raizada through the mud, in the same way Fox has claimed that Raizada had threatened to drag his family members through the mud.
The Debt of Echo Fox
What is arguably the biggest surprise of all was the allegation made by Raizada that Riot did not force Echo Fox to sell the spot as a result of the racist emails but as a consequence of the debt that had been accrued by the team, which is in violation of the LCS rules.
Based on the argument of Raizada, Echo Fox under the leadership of Rick Fox had loans that were more than what the rules of the LCS allow. According to him, the company, which is valued at $150 million, has only $5 million worth of liquid assets.
When all of the debt of the organization was converted into equity, a number of investors ended up being owners of more than 10 percent of the company. This is a move to which Riot must have consented to for the teams ahead of time.
It is quite likely that this epic saga is going to be a series of back and forth of who did what for quite a while, until the general public will finally be able to piece together what actually took place. However, if what is now being said by Amit Raizada on Linkedin and Twitter is the truth, all it is doing is painting a picture of a need for a new eSports team with new owners (chime in Kroenke Sports). This would mean that Echo Fox, its investors and management team are all at fault for the breakdown.
Stay tuned. We will keep the updates coming as more and more information surfaces and the Rick Fox story deepens even further.