Counter Logic Gaming — better known as CLG — will lay off staff and keep just one team in operation pending a sale, per a report.
Independent esports insider Travis Gafford said the organization is expected to sell its League of Legends spot, likely to NRG, following the League Championship Series summer season. The future of CLG is unclear, he said.
Layoffs are expected to begin Thursday and hit all parts of the company other than the LOL vertical.
Founded in 2010, CLG is a legacy esports organization and launched one of the first LOL teams. It won the 2015 LCS summer championship and the spring title the following year.
The Madison Square Garden Co., owners of the New York Knicks and Rangers, gained a controlling interest in the organization in 2017.
“We really thought this was going to move the organization to an exciting direction,” Gafford said of the MSG acquisition, adding the move didn’t pan out the way insiders thought it would.
Sources: CLG Sold, Mass Layoffs, Brand's Future Uncertainhttps://t.co/klnTuTxJqR pic.twitter.com/fchwHlkttY
— Travis Gafford (@TravisGafford) April 3, 2023
This is yet another alarming move among North American esports groups.
In February, The Guard laid off all of its employees. A recent report from Sports Business Journal said TSM is considering selling its LCS slot.
–Field Level Media