Counter Logic Gaming reportedly sold with mass layoffs

Esports organization Counter Logic Gaming (CLG) has reportedly been sold by its owner, Madison Square Garden Sports (MSG), with all of its staff being laid off and only its League of Legends (LoL) vertical remaining.

The details:

• According to reporter Travis Gafford, sources close to the situation have revealed that "seemingly all" of CLG's employees will be laid off by Saturday, with employees being notified earlier today. Greg Kim, the organization's current head, is among those laid off, but its LoL division will remain operational for the time being until its staff, players, and franchise spots are sold to fellow American esports organization NRG Esports shortly. Although Gafford stated that he is unaware of the specifics of NRG's involvement, it is speculated that the team will be acquired and its branding changed when Riot Games allows it at a later date.
• The CLG brand is expected to be dissolved by MSG; however, Gafford has stated that it is unknown whether the brand itself will be sold off to NRG or another buyer. He has also stated that there may be a future attempt to salvage the brand but has reiterated that no one other than MSG can confirm whether or not it still owns the IP. He has contacted MSG and CLG for comment on the situation, but neither has yet responded.
• Gafford also revealed near the end of his video that he was recently told NRG was in an "interesting financial state," so the news of the organization buying out the franchise spot comes as a surprise. It's possible that another buyer came in on NRG's behalf to pay for the spot, or that investors decided to pour more money into the team for the deal to succeed. Either way, the overall situation may be bigger than expected.
• CLG is best known for its 13-year run in LoL esports, having been founded in April 2010 by former players George "HotshotGG" Georgallidis and Alexander "Vodoo" Beutel, making it the scene's longest-running team. It has also had a longtime rivalry with fellow League Championship Series (LCS) team TSM after former teammate Reginald left CLG to form his organization following disagreements with HotshotGG, with past matchups between the two teams generating a lot of hype. Outside of LoL, the organization has also fielded teams in VALORANT, Call of Duty, Counter-Strike: Global Offensive, and Dota 2, and has sponsored Super Smash Bros. players, including Magi, who joined the team last month.

Other esports layoffs this year:

• TSM was recently reported to have laid off employees, "paused" its esports operations, and is looking to sell its LCS franchise spot. According to sources, the organization took a financial hit after its $210 million naming rights deal with crypto exchange FTX ceased due to FTX's sudden collapse. The team is still looking to field a Counter-Strike roster in the future, likely to capitalize on the upcoming Counter-Strike 2 launch.
• The Guard, a Kroenke-owned organization, laid off its creative, social, and content staff in February, is reportedly looking to sell both its Overwatch League and Call of Duty League spots, and will cease operations after their respective seasons conclude. Its VALORANT team was also rumored to be on the way out, but it is still competing in the North American Challengers circuit.
• In January, 100 Thieves went through a round of layoffs, letting go of around 30 people, including several senior staff members. Chief operating officer John Robinson took to Reddit to explain that the team's "biggest source of revenue" was still its partnerships, with its brands Juvee and Higround "healthy and growing.”