SÁB 28 DE NOVIEMBRE DE 2020 - 07:43hs.
Investment of US$525,000

Simplicity to sell 7.5% of Flamengo Esports to Redragon

Simplicity Esports, the U.S. organization that manages Flamengo Esports, has agreed to sell a 7.5% share of its Brazilian subsidiary Simplicity One Brasil, owner of the Brazilian team’s rights, to gaming peripherals manufacturer Redragon. The companies signed a letter of intent on August 27, and the deal is subject to certain conditions before it is finalized. Redragon was already a sponsor before this investment into the team.

A market valuation ordered by Simplicity established Flamengo Esports’ value at around US$7m, fixing Redragon’s investment at around US$525,000.

A source familiar with the deal told The Esports Observer that the investment will go toward the acquisition of a franchise in the Brazilian Championship of League of Legends (CBLoL), which has a fixed value by Riot at R$4 million (US$740,000).

To organizations that were not part of CBLoL before its switch into the franchising model in 2021, the price is R$4.5 million (US$835,000).

After diligence and completion of final terms, it is expected that Redragon will pay around US$390,000 in cash and more than US$133,000 in additional consideration, involving a sponsored training center, analytics, and a tournament platform to Simplicity managed by the peripherals company.

Redragon was already a sponsor before this investment into the team.

Source: GMB / The Esports Observer