Kroenke Sports & Entertainment and P1 Esports LLC have reached a settlement following the filing of a lawsuit against the former by the latter party. In a joint statement by head of KSE Esports Josh Kroenke and P1/Sentinels CEO Rob Moore, it was announced that Kroenke Sports & Entertainment no longer had any intention of potentially purchasing Echo Fox's franchised spot in the LCS.
A report by ESPN Esports' Jacob Wolf on July 23, 2019 stated that Echo Fox was proposing to sell its spot in Riot Games' LCS, the premiere North American league for League of Legends Esports, to Kroenke Sports & Entertainment. KSE Esports, a subsidiary of the Kroenke Group, is currently run by P1 Esports LLC, the parent company of esports organization Sentinels.
The proposal made sense — Kroenke, and by extension, Sentinels, has already enjoyed success in the Overwatch League with franchise Los Angeles Gladiators, and the Sentinels' experience in previous splits of the NA LCS as Phoenix1 would bring back a fan favorite and a familiar entity. However, P1 CEO Rob Moore had other plans, as Sentinels filed a lawsuit against Kroenke stating that moving forward with the Echo Fox negotations was breach of contract between the partners.
In addition to the Echo Fox proposal violating the alleged verbal agreement between Moore and Kroenke Sports & Entertainment, Moore stated that Kroenke had not always held up their side of the deal financially for the joint venture.
Sentinels/P1 Esports and Kroenke Sports & Entertainment announced publicly on August 13th, 2019 that the two parties had reached an agreement and would no longer be pursuing the potential purchase of Echo Fox. The statement reads as follows:
"Rob Moore, P1 Esports LLC, and KSE have always maintained a wonderful relationship and today we reached a settlement of the recently reported lawsuit between the parties. Rob and his Sentinels management team have been integral to the success of the LA Gladiators of the Overwatch League, and this settlement is a reflection of their hard work and dedication on behalf of KSE. This is an exciting time for the esports industry, and many organizations are evaluating how to best move forward efficiently. At this point, we have determined that now is not the right time for us to
be engaged in the Echo Fox transaction regardless of our excitement about the opportunity and how
successful Riot Games has been and will remain into the future. Rob, KSE, and our entire group are
focused on completing the 2019 OWL season on a successful note and growing beyond our strong finish last year. Once the 2019 season is complete, we will then each make determinations regarding where we want to focus our esports efforts in the future. Let’s go Gladiators!!! #ShieldsUP."
In addition to the success of the LA Gladiators, Sentinels recently made big waves in mainstream news when sixteen-year old professional Fortnite player Kyle "Bugha" Giersdorf won $3 million after winning the 2019 Fortnite World Cup Solos Finals.