An internal investigation by TSM confirmed that former League of Legends coach Zhang “Peter Zhang” Yi diverted $250,000 in player salaries to himself and third parties, Dexerto reported Friday.
TSM hired Simpson Thacher & Bartlett LLP to conduct the investigation on March 23.
A report on the firm’s findings, expected to be released publicly by TSM on Friday, was obtained by Dexerto.
In addition to siphoning $250,000 in player salaries, Peter Zhang also kept $80,000 from the sale of a player’s car, the investigation found. He later paid back $35,000 of that balance after the player reportedly threatened to alert authorities.
Peter Zhang also reportedly attempted to borrow money from eight TSM players and staff members, including players over whom he had managerial responsibility. The amounts solicited ranged from $1,500 to $22,000, with the coach allegedly telling the players it was to help pay for his grandmother’s medical treatments in China.
The law firm’s report also concluded that Peter Zhang was not always acting in the team’s best interests.
“Certain recommendations Mr. Zhang made to TSM may have been motivated by personal gain, including in connection with the salary diversion scheme discussed above, rather than recruiting the best players for the team,” read the report, per Dexerto.
TSM fired Peter Zhang on March 20 after a Dexerto report first revealed the allegations of conflicts of interest and financial irregularities.
–Field Level Media