Second update: Immortals CEO Noah Whinston provided a statement, saying "We cannot comment on our status in the League Championship Series or our specific revenue, but Immortals has significant financial resources from our investors, including AEG and Lionsgate, and we do not operate at a different financial structure than other esports teams in the industry."
Update: More information has surfaced in regards to Immortals' declination. In addition to Immortals' role in the Overwatch League, sources close to Riot Games have contacted ESPN to express that Riot had concerns around Immortals' finances. The team has operated at a significant loss since its formation in late 2015, sources said, and would not be able to contribute to the revenue share -- which sees money go both to and from the developer and other teams.
Original story continues below.
Immortals has been informed that its application to participate in the North American League of Legends Championship Series has been denied, while Echo Fox has been accepted and will receive a permanent spot, league sources told ESPN.
Immortals' declination comes in part as a result of that organization's significant financial commitment to create a live viewing experience for its Los Angeles-based Overwatch League team, one source close to Riot Games told ESPN.
Echo Fox will be required to pay $10 million in franchising fees over the span of the next few years.
Immortals will receive 10 shares in a compensation pool, the most out of all of its peers. The pool will be comprised of the $3 million additional buy-ins from new owners in the league. With the reported removal of at least four teams, that pool will have a total of $12 million or more to distribute.
Both Immortals and Echo Fox purchased into the NA LCS in late 2015. Echo Fox, a group led by NBA champion Rick Fox, purchased its spot of Gravity Gaming for a reported $1 million. Multi-investor backed Immortals acquired its spot of Team 8 for an undisclosed amount.
Riot released details about the NA LCS franchise model which, in June of this year, began taking applications. Echo Fox and Immortals made phase two of that process in September, which saw their executive staff travel to Riot Games' headquarters to review their applications. Teams in the second portion were notified of their status last week, sources said.
Echo Fox joins Cloud9, Counter Logic Gaming, Team SoloMid and Team Liquid as existing teams to reportedly be accepted into the league. Phoenix1, Team Dignitas and Team Envy have reportedly been declined, while the co-owners of the Warriors have secured a spot, sources say. The status of FlyQuest is currently not known.
Echo Fox and declined to comment. Riot Games did not respond to a request for comment.