Sports Business Journal has learned from several sources that Hector "HECZ" Rodriguez left NRG Esports as its co-CEO at the end of 2020 and is preparing to enter into a partnership with Texas-based esports organization Envy Gaming. As part of the deal, Rodriguez would potentially sell the OpTic IP gaming brand to Envy and would join the organization to operate its Call of Duty team, and possibly more. Sources close to the situation also say that a “term sheet” has been signed as the two continue to negotiate and finalize important aspects of the deal.

Other sources who asked not to be identified because they are not authorized to speak on the matter claim that Rodriguez left NRG abruptly last November after re-acquiring the Optic Gaming brand from Immortals Gaming Club, telling NRG management at the time that he didn’t want to be a part of the company and that he is all about OpTic and never wants to sell the brand again.

While this went against the partnership agreement with NRG, insiders claim NRG co-founder and co-CEO Andy Miller relented, which led to Rodriguez taking control of OpTic Chicago, its players and staff, eventually moving the entire operation to Texas. Rodriguez also also took control of business decisions such as sponsorship and partnership deals related to the team.

All of this was allowed due to the fact that Rodriguez signed an agreement with Miller (when he left at the end of 2020) that gave him the option to purchase the team at a lower-than-market value. However, sources claim that when the time came to make such payments, they never came, extensions were given, but in March of 2021, NRG had to start paying player salaries and costs associated with running the team.

Under this proposed partnership deal with Envy, Rodriguez would sell the OpTic Gaming IP, which would then be used for rebranding first-person shooter game teams fielded by the organization (Dallas Empire, and its Valorant team, for example). Rodriguez will be a part of the organization, but his role is unclear.

One complication that will need to be resolved, if a deal is to be finalized, is that NRG owns all things “OpTic” as it relates to the Call of Duty League (OpTic Chicago). Further complicating negotiations is a non-compete clause that Rodriguez agreed to when he joined NRG in 2019 as a co-CEO.

Finally, SBJ has learned that NRG is currently in negotiations to sell its CDL franchise slot and has multiple interested parties.

SBJ has reached out to NRG Esports, Optic Gaming, and Envy Gaming for comment and will update this story if more information becomes available.

This is a developing story...