Madison Square Garden Sports Corp. and NRG Announce Combination of Counter Logic Gaming with NRG to Create Leading Esports Company

On April 6, 2023, Madison Square Garden Sports Corp. (NYSE: MSGS) announced the combination of its esports team, Counter Logic Gaming (CLG), with NRG, a professional gaming company.

Rhea-AI Summary

On April 6, 2023, Madison Square Garden Sports Corp. (NYSE: MSGS) announced the combination of its esports team, Counter Logic Gaming (CLG), with NRG, a professional gaming company. Following this transaction, MSG Sports retains a noncontrolling equity interest in the newly formed NRG/CLG entity. NRG, led by Founder and CEO Andy Miller, will host top esports teams playing in popular leagues such as League of Legends, Valorant, and Overwatch. This strategic move positions MSGS as a significant investor in the growing esports sector as NRG boosts its digital media presence with Full Squad Gaming, attracting a broad audience across social media platforms. The merger aims to enhance competitiveness within the esports industry while leveraging the strengths of both companies for future growth.

Positive

• MSG Sports retains a noncontrolling equity interest in NRG/CLG, allowing continued involvement in esports.
• The merger enhances MSG Sports' position in the growing esports market.
• NRG boasts championship-caliber teams across multiple popular esports titles.
• NRG's Full Squad Gaming brand adds significant digital media reach, conducive to future growth.

Negative

• None.

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NEW YORK, April 6, 2023 /PRNewswire/ -- Madison Square Garden Sports Corp. (NYSE: MSGS) ("MSG Sports") and NRG, a professional gaming and entertainment company, today announced the combination of Counter Logic Gaming ("CLG") with NRG. As a result of the transaction, MSG Sports, which previously owned a controlling interest in CLG, now owns a noncontrolling equity interest in the larger, combined NRG/CLG company.

The newly combined company will be led by NRG Founder and CEO, Andy Miller, and will be home to leading North American esports teams in premier leagues including, League of Legends, Valorant, Overwatch, Apex Legends, and Rocket League. These teams will also benefit from NRG's digital media brand, Full Squad Gaming, which has become an instant powerhouse amassing millions of followers on social media platforms.

MSG Sports President and COO, David Hopkinson, said, "NRG is a leading professional gaming and entertainment company with championship teams and innovative content. This transaction has brought together premier esports teams with a track record of success and allows MSG Sports to remain a significant investor in the esports industry." 

NRG Founder and CEO, Andy Miller, said, "This transaction expands the NRG family and brings together two storied brands that are passionate about gaming. We will now have a larger esports presence with championship caliber teams competing at the highest level of global esports competition."

About Madison Square Garden Sports Corp.
Madison Square Garden Sports Corp. (MSG Sports) is a leading professional sports company, with a collection of assets that includes: the New York Knicks (NBA) and the New York Rangers (NHL); two development league teams – the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL); and an esports team – Knicks Gaming, an NBA 2K League franchise. MSG Sports also operates a professional sports team performance center – the MSG Training Center in Greenburgh, NY. More information is available at www.msgsports.com.

About NRG
NRG is a professional gaming and entertainment company headquartered in Los Angeles, California. Founded in 2016, NRG has embodied competitive esports excellence and the best of gaming culture over the last half-decade. With its championship teams and innovative gaming lifestyle content, NRG amassed over 2 billion content views in 2022. NRG boasts a World Championship Rocket League team, an Apex Legends squad with numerous national and international titles under its belt, and a top ranked fan favorite Valorant squad. Additionally, NRG is home to the San Francisco Shock, the org's Overwatch League team, who is the winningest and most popular Overwatch team of all time, having won 2019, 2020 back-to-back Grand Finals. NRG's content channels span YouTube, TikTok, Instagram, Twitter, Facebook and multiple Snapchat Discover shows. NRG's social gaming brand, Full Squad Gaming, has become an instant powerhouse amassing millions of followers on TikTok and YouTube. NRG content channels currently reach over 70M uniques a month and over 5 million views a day!

Contacts:
Ari Danes, CFA Investor Relations and Financial Communications (212) 465-6072	Justin Blaber Financial Communications (212) 465-6109
Grace Kaminer Investor Relations (212) 631-5076

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SOURCE Madison Square Garden Sports Corp.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the recent announcement from Madison Square Garden Sports Corp regarding esports?

On April 6, 2023, MSGS announced the combination of Counter Logic Gaming with NRG, resulting in MSG Sports holding a noncontrolling equity interest in the new entity.

How does the merger of CLG with NRG affect MSG Sports investors?

MSG Sports remains a significant player in the esports industry while benefiting from the growth and success of the newly combined NRG/CLG.

What esports teams will be part of the new NRG/CLG company?

The newly formed company will feature teams competing in League of Legends, Valorant, Overwatch, Apex Legends, and Rocket League.

Who is leading the newly combined NRG/CLG company?

The combined company will be led by NRG Founder and CEO Andy Miller.

What advantages does NRG bring to the combined esports company?

NRG has a strong track record with championship teams and a substantial digital media presence, including Full Squad Gaming.