Cloud9 Fined By LCS
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Cloud9 is facing some sizable fines from the LCS over payments made to staff as part of an equity plan. Over the prior 16 months, Cloud9 made payments to 7 current and former players as part of a stock plan. It is forbidden under current LCS rules for owners of a team to play on the team. As stockholders with Cloud9, those players are considered to be partial owners.
Cloud9 has been fined a sum of $25,000 dollars for each player involved, totally $175,000 dollars. In addition, Cloud9 will have to pay additional fines to its players for an undisclosed amount of money. Estimates are that the total fines to Cloud9 will range from $330,000 to over half a million dollars. It should be noted that the LCS has declared the $175,000 dollar fine to them will be donated to charity.
Our Thoughts: Not a whole lot to say here. Cloud9 failed to notify the LCS of the payments to their players. It may be a case of them not being aware of a new rule, but I don’t think there’s anything real sinister here. Glad the money is going to charity, shouldn’t affect Cloud9 going forward.