CLG has reportedly been sold and mass layoffs will be happening this week, according to Travis Gafford.
Counter Logic Gaming (CLG) has reportedly been sold and mass layoffs will be on the horizon, according to content creator Travis Gafford. Read on for the rundown and an official statement from Madison Square Garden Sports about CLG.
CLG employees will reportedly be let go
In a YouTube video, Gafford revealed that CLG staff members will be let go this coming Thursday. These layoffs will include Greg Kim, who is currently the head of the esports organization.
"I've spoken to several different people over the past couple of hours and what has materialized is the information that CLG employees were informed earlier today that starting on this Thursday, seemingly all staff members, including even Greg Kim who is running the organization, will be let go from the organization and the company other than the League of Legend vertical," Gafford said in his video.
Counter Logic Gaming and League of Legends
He also explained how the League of Legends vertical may be involved with NRG, noting a possible acquisition and name change.
CLG may not continue to exist as a brand or an esports organization, he added. This is because Madison Square Garden Sports, which has a controlling stake in CLG, has seemingly sold off either the League of Legends vertical or the esports organization itself. Gafford emphasized that the exact details are not completely clear at the time being of this developing story.
According to writer Alexander Lee, Madison Square Garden Sports issued a statement about CLG on April 4.
“While changes like this are always difficult, we are streamlining CLG’s operations to better position the company for long-term success, and are also currently exploring strategic alternatives for the business,” the statement read.
TSM and CLG
Gafford also mentioned how this news arrived on the heels of the TSM news last week. This refers to TSM's pause on its esports efforts, as reported by the Sports Business Journal.
The Sports Business Journal noted that TSM's League of Legends Championship Series (LCS) franchise may be on the block as well. Sources told the Sports Business Journal that the esports organization took a significant financial hit after the fall of crypto brand FTX.
That's all for now. Stay tuned on esports.gg for more news and updates.