Game on

Houston Outlaws esports team sold to local real estate investor for $40 million

Houston's esports team has been sold to a local investor. Jamie McInall/Pexels

Houston real estate investor Lee Zieben has agreed to terms with Immortals Gaming Club to purchase the Houston Outlaws for a total deal value of $40 million, sources familiar with the deal told ESPN.

According to an original ESPN report, the deal has not been executed but is expected to close in late August, with Zieben currently having a binding letter of intent with Immortals for the purchase, according to sources. Paperwork submission to and approval of the Overwatch League is pending, league sources said.

If completed as expected, Zieben will pay $30 million in cash and securities and assume the $10 million debt in remaining payments to the Overwatch League for the Houston Outlaws franchise slot, sources said. Immortals declined to comment. Lee Zieben's office and the Overwatch League did not respond to a request for comment.

Immortals will sell the team after they acquired Infinite Esports & Entertainment, the parent of OpTic Gaming and the Outlaws, in June.

Immortals will retain their ownership of OpTic, splitting that team and the Outlaws for the first time. In June, Immortals completed a deal with Activision Blizzard to enter the franchised Call of Duty League that is set to launch in 2020.

The deal for Infinite saw Immortals guarantee payments of $35 million to $45 million worth of cash and equity share to Texas Esports — backed by Texas Rangers owners Neil Leibman and Ray Davis and Houston Astros minority owner John Havens — and Aurelius Esports, led by former Infinite president Chris Chaney. Immortals also assumed debts Infinite owed, including the Outlaws' Overwatch League payments and OpTic's remaining franchise fees to the League of Legends Championship Series, totaling the deal to an enterprise value of over $100 million.

With the acquisition of Infinite, the Overwatch League required Immortals to sell the Outlaws to a third party as quickly as possible, due to Immortals' ownership of the fellow league team, the Los Angeles Valiant. No team is allowed to own equity in two different teams in the Overwatch League.

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Houston-based Mainline has announced new partnerships with a few universities. Jamie McInall/Pexels

A Houston esports platform has announced that four universities — including one in town — have made moves to optimize the company's technology.

Texas A&M University, the University of Texas - Austin, Louisiana State University, and Houston's own University of St. Thomas have made a deal with Mainline. The company, which just closed a $9.8 million series A round, is a software and management platform for esports tournaments.

The four schools will use the software to host and grow their on-campus esports communities, according to a news release.

"These are top universities seeing the value of esports on-campus and making a choice to support their students' desires to play and compete — much like in traditional sports," says Chris Buckner, CEO at Mainline, in the release. "Adoption of Mainline is validation of the opportunity to engage students and the broader community with a compelling esports platform, as well as strengthen a school's brand, provide additional partnership opportunities and market their initiatives"

While UST has is still in the process of utilizing Mainline for its esports platform to grow its program and will use the software for its first tournament in 2020, A&M first used Mainline's software this past spring, but has doubled down on its commitment to esports.

"Texas A&M recognizes the significant esports presence on campus and the importance of supporting this thriving student community. Mainline allows us to maintain the brand continuity of the university, and to drive incremental inventory and value for sponsors," says Mike Wright, director of public relations and strategic communications at Texas A&M Athletics, in the release.

The platform provides its clients with an easy way to manage, monetize, and market their tournaments.

At UT, the school's administration, along with its Longhorn Gaming Club, is currently running two tournaments on Mainline: Rocket League and League of Legends.

"Texas has had a long established esports community on campus, and our partnership with Mainline will enable us to more closely work with Longhorn Gaming to better support this audience to benefit our students and partners," says Mike Buttersworth, director of the Center for Sports Communication and Media at UT, in the release.

Meanwhile at LSU, the university is running an esports Rocket League qualifying tournament on the Houston company's platform to select a three-student team to represent the school at the inaugural "Power Five Esports Invitational" in New York in January, according to the release.

"This kind of tournament is a first for our campus, and Mainline is making it easy for us to be able to host this qualifying tournament for our students to ultimately represent our university at the Power Five Esports invitational," says Robert Munson, senior associate athletics director at LSU.

As for Mainline, these four schools are just the beginning for universities using the platform.

"Mainline is continuing this collegiate momentum with another 10 powerhouse universities expected to come aboard our platform by the end of 2019, and 50 more by the spring 2020," says Buckner.