Lesser Law Group

Esports team problems lead to breach of contract lawsuit

Many people in California dream of breaking into esports, but the industry of competitive video gaming carries the same risks as other enterprises. Former NBA star Rick Fox has sued two of his former business partners, saying that they breached their contract with him to build an esports team. The case was filed in California Superior Court, and Fox accuses his former business partners of misleading him when he bought the leading stake in an esports firm, Echo Fox.

Before the lawsuit was launched, Fox was involved in a public dispute with one former business partner who was accused of using racist language against the former CEO of the esports team. The former business partners deny the allegations and instead accuse Fox of mismanaging the team, leading other partners in the concern to seek his removal from his role with the team. Fox's suit accuses the former partners of engaging in self-dealing, including paying themselves high salaries, funding their personal homes and issuing large loans. However, the former business partners say that general partners of the esports team have voted to remove Fox from his leadership position at the concern and that he has filed this lawsuit in revenge.

The former partners say that they did not misuse company funds and did not breach their contract. They say that they invested millions of dollars into the esports company. However, Riot Games stripped the team of its competitive slot in League of Legends play over the use of racist language.

Sometimes, competition and rivalry in esports moves from the video gaming arena to the field of business. People engaged in an enterprise can turn to a business law attorney if they face a corporate dispute or a contract concern. Legal counsel could help them protect their interests.

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