CLG owners, MSG Sports, gave a statement to Digiday about the report that the esports organization is shutting down, laying off its entire staff and selling its LCS spot.
It was reported on April 3 that CLG would be shutting down, laying off its entire staff (including upper management), and selling its LCS slot. A day later, the parent company of the esports organization, Madison Square Garden Sports, gave a statement to Digiday about the changes coming to CLG.
“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 said.
Here's an official statement from MSG Sports regarding @clgaming: “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.”
— Alexander Lee (@alexleewastaken) April 4, 2023
MSG bought a controlling stake in CLG in 2017, which was the New York-based company’s first foray into the esports business, apart from hosting the LCS finals in 2015. The company said that the investment was made to diversify its portfolio and “enhance MSG’s portfolio of live experiences.” CLG was founded in 2010 as a League of Legends team and expanded to have teams in Valorant, Counter-Strike, Apex Legends, and other titles.
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CLG esports owners give statement on coming sale and layoffs
CLG staff were told on April 3 that by the end of the week, they would no longer have jobs with the company and that the League of Legends division would be sold off to NRG Esports, according to the report.
The report did not specify if NRG would be buying CLG or just acquiring the LCS slot as MSG closes its operations. CLG employees, players, and content creators have reacted to the news with a mixture of jokes and heartbreak as they either learn of the news or respond to questions.
The news of CLG’s demise comes days after reports around TSM potentially selling its slot in the LCS and experiencing other financial woes. The two esports organizations are some of the longest-tenured organizations in LoL history and have been in the LCS since its inception.