2. Ownership
2.1. Ownership Restrictions
2.1.1.
In order to preserve the integrity of official League play, the Team Managers, or
affiliates thereof, shall not have an interest in more than one Professional Esports
Team participating in a Professional Esports League, as defined below:
An “Interest” in or with a Professional Esports Team means any of the following:
(i) a direct or indirect financial interest in, or financial relationship with, such
Professional Esports Team, whether by legal or beneficial ownership, control,
contractual relationship, loan agreement, or otherwise (including, for the
avoidance of doubt, any buyback provision, right of first purchase, voting rights
agreement, lien, deferred, reversion or security interest); or (ii) status as an
officer, director, employee, stockholder, owner, affiliate, representative, agent,
consultant, or advisor of such Professional Esports Team, or any other role
whereby a person participates, directly or indirectly, in the financing, operation,
marketing, or management of such Professional Esports Team or its assets.
2.1.2.
Notwithstanding the foregoing, it shall not be considered a violation of Rule 2.1.1
for a Team Manager to have ownership in a common entity or venture that is not
a Professional Esports Team, with another Team Manager (a “Common
Undertaking”) that would otherwise constitute an Interest subject to this rule;
provided, however, that such Interest comprises (i) a solely passive ownership
interest in less than ten percent of the capital stock of such Common
Undertaking, (ii) such Team Managers do not undertake any operating role
(including as an officer, director, employee, representative, agent, consultant, or
advisor, etc.) with, and otherwise has no ability to control or exercise influence
over such Common Undertaking, and (iii) such Team Manager has provided
written notice to the League of such ownership in a Common Undertaking five
business days in advance of such investment.
2.1.3.
Any Team Manager who changes organisations and retains an illiquid ownership
interest in their previous organisation may request a waiver from the prohibition
set forth in 2.1.1 prior to obtaining a conflicting interest, so long as they meet the
following criteria: (i) their original Interest is a solely passive ownership interest;
(ii) such Interest was obtained in connection with good-faith full-time employment
for longer than 12 months; (iii) such Interest does not exceed five percent (5%) of
the outstanding ownership interests of the previous organisation; and (iv) the
Team Manager commits to transfer or sell the original Interest as soon as
reasonably possible. The Team Manager must submit a request for this waiver to
the League prior to obtaining a conflicting ownership interest and granting the
waiver is at the sole discretion of the League.