CLG’s Future Uncertain: Owners Confirm Restructuring Amidst Reports of Closure and Staff Layoffs
CLG’s owners, MSG Sports, have stated in response to a report that the esports organization will be closing its doors, letting go of its entire staff, and selling its place in the LCS. The statement was provided to Digiday. On April 3, it was reported that CLG would be going out of business, firing its entire staff (including senior management), and selling its LCS slot. Following that, the parent business of the esports organization, Madison Square Garden Sports, provided a statement to Digiday regarding the upcoming changes that CLG will implement.
According to the statement, “While changes like this are always difficult, we are currently exploring strategic alternatives for the business and streamlining CLG’s operations in order to better position the company for long-term success.”
MSG made its debut in the esports industry in 2017 by purchasing a controlling stake in CLG. This was the New York-based company’s first venture into the industry, with the exception of presenting the LCS finals in 2015. According to the statement made by the business, the investment was created in order to “enhance MSG’s portfolio of live experiences” and “diversify its portfolio.” CLG was established in 2010 as a squad for the game League of Legends. Since then, the organization has grown to include teams competing in games such as Valorant, Counter-Strike, and Apex Legends.
The proprietors of CLG Esports have released a statement regarding the impending sale and layoffs
According to the report, CLG staff were informed on April 3 that by the ending of the following week, they would no longer have jobs with the business and that League of Legends division would be sold off to the NRG Esports. Additionally, the report states that CLG staff were informed on April 3 that the League of Legends division would be sold off.
The report did not clarify whether or not NRG would buy CLG; instead, it simply stated that the company would acquire the LCS slot left vacant by MSG’s closure of its operations. As they learn of the news or respond to inquiries about it, CLG employees, players, and content creators react to it with a mixture of jokes and expressions of heartbreak.
The announcement of CLG’s dissolution comes just a few days after reports surfaced suggesting that TSM might trade its spot in the LCS and was experiencing other financial difficulties. These esports organizations have been competing in the League of Legends Championship Series (LCS) since it first began, making them two of the most seasoned teams in history.
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