Team EnVyUs has obtained a $35 million investment from Hersh Family Investments and its interactive group, led by Dallas-based oil and natural gas magnate Kenneth Hersh, sources close to both parties told ESPN.
The deal is one of the largest reported esports team acquisitions in the history of the industry. Other teams have sold for roughly $15 million to $25 million over the past year, sources familiar with those deals told ESPN.
EnVyUs will relocate to Dallas and assume the Austin-Dallas Overwatch League spot, sources told ESPN on Sunday, as it is in the process of finalizing a deal to participate in the Overwatch League for $20 million. If the deal is finalized as anticipated, Team EnVyUs will be the eighth team to participate in the Overwatch League.
Team EnVyUs is also among the other nine existing North American League of Legends Championship Series teams that have applied to retain a spot in that league, which if accepted will require a $10 million buy-in fee.
The investment for Hersh Family Investments is the second of its kind in esports. In April, Hersh and his company were minority investors in a $7 million funding round for London-based esports team Fnatic. Hersh's involvement in the Fnatic deal is minimal, according to sources, whereas his role in the investment of EnVyUs is much larger.
Hersh is a co-founder of energy and oil investment firm Natural Gas Partners, where he now serves as an advisory partner. Hersh is the CEO of the George W. Bush Presidential Center, a director of the Texas Rangers and the lead of his family's investment portfolio.