Credit: Harris Blitzer Sports & Entertainment
- Harris Blitzer Sports & Entertainment has agreed to purchase a majority stake in Clutch Gaming for $20M.
- The deal would reportedly involve Clutch being rebranded to Dignitas after the 2019 season.
- This would see one of the founding brands of the LCS return to the league.
Philadelphia 76ers and Dignitas 
parent Harris Blitzer Sports & Entertainment has agreed in principle to acquire a majority stake in Clutch Gaming , the League of Legends organization owned by the Houston Rockets, for $20M USD according to a report by ESPN.
Sources told ESPN that Clutch Gaming will rebrand to Dignitas likely following the conclusion of the 2019 season. This would mark the return of one of the founding organizations in the League of Legends Championship Series, after Dignitas’ application for the franchise system was rejected in October 2017.
Through the deal, HBSE will own 68.2% of a new entity called Mal País which will own both Clutch Gaming and Dignitas. The Rockets will retain 31.8% ownership and receive $12.5M of the total $20M investment in multiple cash payments. Approximately $1.5M will reportedly go toward Clutch Gaming’s $13M franchise fee, of which $8M has been paid so far. The remainder of HBSE’s $20M will be used to fund team operations through 2021.
According to ESPN, Mal País is being valued at $47.5M in total – $30M from Clutch Gaming and Dignitas at $17.5M. The new entity will be led by Dignitas CEO Michael Prindiville, with a board comprised of HBSE CEO Scott O’Neil, HBSE Ventures partner Chip Austin, former EA VP Greg Richardson, and led by HBSE head of strategy and investments David Abrams.
The Esports Observer has reached out to all parties involved in the reported deal for comment, and will update this piece as further details are made available.
