Echo Fox Lawsuits Dismissed, Rick Fox Able to Pursue Other Opportunities in Esports
Rick Fox and his former Echo Fox business partners have settled out of court for the fate of the esports organization, Newsweek has learned. Fox is now free to pursue other business avenues, including in esports. Lawsuits from both sides of Echo Fox have been dismissed echo fox A stipulation agreement has been filed in…
Rick Fox and his former Echo Fox business partners have settled out of court for the fate of the esports organization, Newsweek has learned. Fox is now free to pursue other business avenues, including in esports.
A stipulation agreement has been filed in the Echo Fox case, with both sides agreeing to dismiss their respective lawsuits. Filed in LA county court Monday night and obtained by Newsweek, the attorneys for Vision Esports (operated by Stratton Sclavos), the general partner Esports LLC and Rick Fox have agreed to a confidential settlement agreement that has both parties filing the settlement and a dismissal request.
The funds for the sale of the LCS slot for Echo Fox’s League of Legends team will be done by a direct sale and decided by a new general partner that has yet to be designated. The original Oct. 4 agreement, which was created to put the funds in the court’s custody unless both parties agree or a court order distributed the funds, has been nullified.
Fox had taken over the over GP role in January of 2019 after purchasing Raizada’s shares of the company for $10 million. Fox plans on leaving the company that he helped build to form a new organization, Twin Galaxies International, with his friend and former Echo Fox president, Jace Hall.
Lawyers from all sides met over a week period to settle on this agreement.
In April 2019, a letter from Rick Fox was published saying the owner was going to leave the company after Raizada had used a racial epithet directed at Hall. Riot Games, the developers of League of Legends, initiated an investigation and decided that Raizada either needed to leave the company or the team’s slot had to be sold by September. The slot was eventually acquired by organization Evil Geniuses for $33 million according to ESPN.
A lawsuit by Vision Esports filed in June claimed that Fox had owed investors $5.1 million, but it was dismissed in early July. Fox had filed his own lawsuit against Raizada and their business partner Stratton Sclavos in October, alleging that the pair had misused Echo Fox’s funds and had gone so far as to tap his phone lines and hire private investigators to trail the former NBA player.
The future of Echo Fox still remains uncertain.
Raizada did not respond to Newsweek’s request for comment by publication.
(Update 4:00 p.m. EST): Here’s an updated statement from Rick Fox:
I have chosen to leave Echo Fox, the esports company that I founded, as a method to end the turbulent fighting and instead just continue to advance my visionary interest in being involved in a number of forward-thinking opportunities in the video game space with other strong, credible partners that share my values.
On the court and in the business world, teammates are everything and there must be unity and a shared sense of purpose in order to succeed. In the case of Echo Fox, the significant difference of values, ethics and commitment to integrity was very problematic and damaging. I have shared my thoughts on this in my past statements and court filings, and sincerely hope that my experience can help provide further insight for people who should of course make their own judgements and determinations. I have learned some very painful lessons, and am relieved to now be moving on towards more positive business experiences.
My experience with Echo Fox has in no way diminished my abiding passion for esports. I look forward to announcing my next endeavors in the coming days.
Fans Celebrate #HOV50 and Share Favorite Jay Z Lyrics on Music Mogul’s 50th Birthday
In honor of Jay-Z’s 50th birthday, fans all across the globe flooded social media with warm messages of love and support.The hashtag #HOV50 began to trend early in the morning on Twitter on Wednesday as a result of the many well wishes from the longtime rappers’ fans.Fans opened up on some of their most memorable…
In honor of Jay-Z’s 50th birthday, fans all across the globe flooded social media with warm messages of love and support.
The hashtag #HOV50 began to trend early in the morning on Twitter on Wednesday as a result of the many well wishes from the longtime rappers’ fans.
Fans opened up on some of their most memorable moments involving the music mogul—whose birth name is Shawn Carter but is commonly referred to by fans as Hov, short for Hova. They also posted messages of the many ways Jay-Z has inspired them, including with hundreds of photos, gifs and video clips of him in action.
Many people used the Brooklyn native’s birthday to reflect on his work over the last three decades, listing their favorite albums, songs and guest features from the rapper.
Album rankings weren’t the only way fans recognized Jay-Z on his 50th birthday. Several people took to Twitter to commemorate the award-winning lyricist by sharing their favorite verses ever rapped by him. Classic Jay-Z lines from chart-toppers like “Hard Knock Life,” “Song Cry,” “Say Hello,” and his guest feature on Kanye West’s “Diamonds From Sierra Leone” were spotted on Twitter timelines.
Meanwhile, some fans said they’d celebrate Jay-Z’s birthday by listening to his lengthy discography all day long.
Jay-Z made listening to his catalog a whole lot easier for some of his fans when he re-released his entire catalog of music again on Spotify.
The Roc Nation founder removed much of his work from the platform in April 2017 to the dismay of many loyal listeners just ahead of the release of his latest album, 4:44.
At the time the move seemed like a ploy to get fans to subscribe to TIDAL, the music streaming service he owns and operates. Now, Spotify users will get to listen to all of Jay-Z’s albums and songs ranging from his 1996 debut Reasonable Doubt and so-called career retirement project The Black Album in 2003, his 2011 Watch the Throne collaboration album with West and several other staples.
Since he first emerged on the rap scene in the 1990s, fans have admired and praised Jay-Z for his many punchlines, thought-provoking lyrics and masterful storytelling. A natural wordsmith, he has kept listeners fascinated and moved with his ability to flow over a beat with grace and pizzaz—not to mention the fact that he creates hit after hit without writing his lyrics down.
It’s a long-known fact Jay-Z doesn’t write his albums but rather hits the studio with a few words already in mind before he jumps on a track. That habit sparked a number of younger singers and rappers following in his footsteps by not pre-writing lyrics to their songs.
“It just felt better [the way I do it now],” he said during a 2007 interview withMTV News. “In my mind, I said, ‘OK, I’m gonna sit down and I’m [going to] just write it and really do this thing a certain way.’ But your natural process is your process. It’s difficult to go back to what you was doing when you was 15, 16 years old. My process is different now. It sounds great on paper, like ‘I’m [going to] sit down, I’m going to write the entire album like I did before.’ But once you get back in the studio and you’ve been doing this process for years and years now, so it just felt natural to do it the way I’ve been doing it: no paper, no pen, just listen to the music.”
See more of how fans are celebrating Jay-Z’s birthday below.
Retired Colonel Warns That North Korea Firing Missiles on Thanksgiving Is ‘No Coincidence,’ Criticizes Trump Rhetoric
Retired U.S. Army Colonel Jack Jacobs warned that North Korea’s reported firing of two missiles on Thanksgiving was “no coincidence,” while criticizing President Donald Trump’s claims that the Asian nation will give up its nuclear weapons.South Korea’s military reported that two “short-range” projectiles were fired from what was believed to be “a super-large multiple rocket…
Retired U.S. Army Colonel Jack Jacobs warned that North Korea’s reported firing of two missiles on Thanksgiving was “no coincidence,” while criticizing President Donald Trump’s claims that the Asian nation will give up its nuclear weapons.
South Korea’s military reported that two “short-range” projectiles were fired from what was believed to be “a super-large multiple rocket launcher” on Thursday. The missile test would mark the 13th such action by North Korea since May, despite repeated claims by Trump that the country’s dictator, Kim Jong Un, plans to cooperate with the international community and denuclearize.
Asked during an interview with MSNBC if it was a coincidence that North Korea carried out the test on Thanksgiving, Jacobs argued that was definitely not the case.
“No, there’s no coincidence,” the retired colonel, who received the Medal of Honor for his actions in the Vietnam War, said. “Symbolism is very big for Kim. Look, it’s business as usual in North Korea. North Korea’s a continuing criminal enterprise. It’s not going to give up its nuclear weapons, it’s not going to [dis]continue testing delivery systems despite rhetoric, particularly what came from the White House during this administration,” he added.
“They’re going to continue doing what they’re doing and nothing is going to change. North Korea is not interested in giving up its nuclear weapons,” Jacobs asserted.
Trump, as Jacobs noted, has repeatedly insisted that North Korea will curb its nuclear program and alter its provocative behavior, despite the disagreement of leading foreign policy experts and the assessment of U.S. intelligence agencies. The president has met with Kim directly on multiple occasions, becoming the first sitting U.S. head of state to do so. Trump also became the first sitting American president to step foot into North Korea earlier this year in late June.
Nonetheless, North Korea has failed to take any serious steps to denuclearize and has steadily increased missile tests over the past few months. In a controversial tweet on November 17, Trump responded to North Korea calling Democratic presidential candidate Joe Biden a “rabid dog.”
“Mr. Chairman, Joe Biden may be Sleepy and Very Slow, but he is not a ‘rabid dog.’ He is actually somewhat better than that, but I am the only one who can get you where you have to be,” Trump tweeted, directing the post at Kim. “You should act quickly, get the deal done. See you soon!”
But North Korean Foreign Ministry adviser Kim Kye Gwan dismissed the president’s remarks the next day, saying that the Asian nation was no longer interested in discussions regarding its nuclear program.
“I interpreted President Trump’s tweet on the 17th to signify a new DPRK-US summit” but “we are no longer interested in these meetings that are useless to us,” Kim said in a statement published by North Korea’s state news agency.
“We will no longer give the U.S. president something to boast about for nothing in return, and we must receive from the U.S. what is corresponding to the results that President Trump is already boasting as his achievements,” the adviser added.
North Korea has previously launched missiles to coincide with an American holiday. In 2017, the Asian nation conducted its first successful launch of an intercontinental ballistic missile on the 4th of July. At the time, state media referred to the test as a “package of gifts” for “American bastards.”
Business Have Been Practicing Social Responsibility For Decades, But Is That Really A Good Thing?
The jury is out on whether corporate social responsibility (CSR) programs will one day make the world a better place. But this much is pretty clear: They’re already benefiting the companies that have implemented them. And in some unexpected ways.Specifically, CSR has become the weapon of choice for what is known as, in corporate speak,…
The jury is out on whether corporate social responsibility (CSR) programs will one day make the world a better place. But this much is pretty clear: They’re already benefiting the companies that have implemented them. And in some unexpected ways.
Specifically, CSR has become the weapon of choice for what is known as, in corporate speak, the three R’s: Investor Relations, Human Resources, and Public Relations.
But before we dive into details, a CSR mini-lesson is in order. First off, CSR isn’t an overnight sensation. Over the past couple of decades, companies have been embracing the idea that they need to do more than just make a profit for shareholders. Do-good efforts slowly evolved from passive and limited corporate philanthropy programs—giving to the United Way, for example—to broader and more active CSR programs. Those would take on major social issues like Goldman Sachs’ 10,000 Women program, which in partnership with the International Finance Corporation (World Bank) has delivered $1.45 billion in loans to women-owned businesses in developing countries.
Now, they have evolved even more. Many companies are now incorporating impact-on-society considerations into core business activities. For example, Starbucks only uses “ethically-sourced coffee.” Programs like these are often focused on “sustainability.” In August, 181 CEOs of the country’s largest corporations signed a Business Roundtable statement committing to managing their companies not just for shareholders, but also for customers, employees, suppliers, and communities.
The idea behind all of these efforts is the well-worn slogan “doing well by doing good,” which means that being a positive force in the community will enhance a company’s reputation, which in theory will pay off in more sales, lower costs and over the long term, more money for shareholders.
Can you even measure something like this? Stephen Hahn-Griffiths, chief reputation officer of the Reputation Institute in Boston, says you can. He reels off a string of statistics, like “40% of the reputation of a company is related to corporate responsibility” and says his organization’s research proves that reputation is a leading indicator of stock market capitalization, or the total value of a company’s shares. In other words, he adds, “CSR has a multiplier effect” when it comes to a company’s value. But CSR can be risky. And take a little guts.
According to analysts, CVS’s 2014 decision to stop selling tobacco products cost it $2 billion a year in sales and caused the stock price to drop. (Investors took a $1.43 billion hit that year according to Martin Anderson of UNC Greensboro.) In 2010, Campbell Soup announced it was reducing the salt levels in many of its soups, a decision they reversed the following year when sales fell by 32%.
Meanwhile, in 2018, Dick’s Sporting Goods stopped selling assault rifles. On a panel at this year’s Aspen Ideas Festival, CEO Ed Stack said that decision cost them customers and employees. He notes that many of the customers who applauded the decision at the time seem to have forgotten, but those who were in opposition have not. “Love is fleeting,” he says. “But hate is forever.”
But many companies feel the do-gooder dividend outweighs the risks, both in relations with consumers and in day-to-day operations.
Brad McLane, who recruits high-level positions at RSR Partners, says, “Companies aren’t doing it just to say they have it. My clients are incorporating it into how they do business—what ingredients they use, where they source, how they design products.” Megan Kashner, clinical professor at the Kellogg School of Management’s Public-Private Interface agrees. She’s says that we’ve moved from “greenwashing programs that mimic CSR” to an era of “authentic CSR.” Greenwashing is the practice of making misleading claims that make a company appear more environmentally or socially conscious than it is, for example, when BP began touting itself as being environmentally conscious through a $200 million public relations campaign, only to have a string of environmental disasters—some of which, according to a government report, were caused by corporate cost-cutting to boost profits.
Simon Lowden, Pepsico chief sustainability officer, says, “It’s woven into how we operate as a business. For instance, we need to maintain our license to operate in water-stressed regions, so we’d better focus on being responsible stewards of water. It’s not only the right thing to do, it’s important to our business.”
CSR is particularly useful in human resources. Rebecca M. Henderson, holds the John and Natty McArthur Chair at Harvard and is finishing a book on this topic, Reimagining Capitalism in a World on Fire. She says: “CSR has a tremendous impact on the morale of employees. Authentic purpose, which may mean occasionally sacrificing profits, accesses a whole range of emotions difficult to get at otherwise, like trust and engagement.”
In other words, it gets through. And that is a good thing. It leads to higher levels of productivity and employee retention.
CSR can also be a big factor in recruiting, particularly for younger employees, says Eric Johnson, executive director of graduate career services at the Kelley School of Business at Indiana University. He says, “Social impact is a big piece of the recruiting process. Probably 50 percent of that initial conversation is about what the company is doing to make the world better.”
“Beer companies used to talk about fun and sports. Now they talk about their programs to save water in the world. Social impact can tip the scales. Is a student going to choose an $85,000-a-year job over a $125,000 job because of social impact? I doubt it. But my observation is that jobs heavy in social impact often pay up to 10 percent less than comparable jobs that don’t.”
Professor Kashner adds, “These newly minted MBAs care and they care about the type of work they’re going to be doing. Maybe previous generations drew a line between work and personal life and values, but those boundaries no longer exist.” Korn Ferry, the giant executive recruiting firm, recently surveyed the professionals in its network. “Company mission and values” was the No. 1 reason (33 percent ) they’d choose to work for one company over another.
CSR is increasingly part of the conversation with individual shareholders and investors, like the world’s largest investment firm, BlackRock, which manages $6.5 trillion dollars for its clients. In his last two annual letters, CEO Larry Fink has called on companies to do more and said that BlackRock will evaluate companies on more than just financial numbers. His 2018 letter said, “As divisions continue to deepen, companies must demonstrate their commitment to the countries, regions, and communities where they operate, particularly on issues central to the world’s future prosperity.” Many investment firms now have someone in charge of building portfolios around companies based on their performance on Environmental, Social and Governance or ESG. (Measuring which companies are woke is an industry in and of itself.)
One aggregator of ESG ratings, CSRhub.com, lists 634 data sources. They range from the very broad (for example, Alex’s Guide to Compassionate Shopping) to the very specific (for example, the Alliance for Bangladesh Worker Safety).
For public relations, CSR is both an offensive and a defensive weapon. CSR can be used to pre-empt the conversation in areas where companies have been criticized. Procter & Gamble’s “Ambition 2030 program is heavy on recycling and biodegradability.
But CSR can also be a useful defense. It not only builds up a stock of goodwill with the media and the public, but it generates good news that crowds out the bad. Large corporations are going to get a certain amount of press and awkward questions each day—better that press and those questions be about CSR than, say, worker safety or GMOs. For example, in 2018 when Johnson & Johnson was accused of knowingly selling baby powder with harmful levels of asbestos, Harvard professor Bill George wrote a stirring defense of the company, focusing not on the merits of the claim, but on J&J’s “Our Credo,” a commitment to integrity and customers written in 1943 (and likely the first CSR document ever produced.)
Still, not everyone is convinced. There are many who adhere to the late economist Milton Friedman’s argument that the sole purpose of the corporation is to make more money for shareholders, who can then choose for themselves whether or not they want to save the world.
Judith Samuelson, vice president of Aspen Institute and founder of their Business and Society Program, who’s worked with many of the companies currently leading the way in CSR, says, “The shareholder primacy viewpoint hasn’t gone away. And even if attitudes have changed, measures haven’t. Many executives, including CEO’s, are still paid in stock, and those who manage portfolios for institutional investors are still bonused on the value of those portfolios.”
Samuelson worries that “Companies may think these (current) programs are enough and not make fundamental change.” Kashner is more optimistic. She cites work that says large public companies are increasingly incorporating CSR metrics into executive compensation contracts.
Those who oppose CSR programs argue that trying to do two things at once, like making a profit and serving society, will destroy the effectiveness of companies.
Samuelson scoffs at this. “Of course companies can do more than one thing. Public companies have to manage multiple objectives all the time. No public company in the world would last a week if the only people they cared about were shareholders. What about customers? Employees?”
She believes that CSR really boils down to responsible decision making, doing what it takes for companies to succeed in the long term. Whatever, CSR is here to stay. It’s become part of the fabric of investing, company operations, and business school curricula.
It’s now being tracked and measured, and in business, what gets measured gets done.
→ Sam Hill, a Newsweek contributor, is an author and former C-suiter.
Business Have Been Practicing Social Responsibility For Decades, But Is That Really A Good Thing?