Sources: Apex Gaming acquires Team Dignitas' Challenger Series spot, intends to build second team

Kiwikid takes on NRG Esports in Week 6 of the North American LCS. Provided by Riot Games

League Championship Series veteran Team Dignitas is on its way out after selling its North American Challenger Series spot to Apex Gaming this week, sources close to both organizations told ESPN.

Apex Gaming has bought the spot with the intention to build a second team under its brand. Whether any of the Team Dignitas players stick around on Apex's new team is uncertain, although jungler Thomas "Kirei" Yuen is currently looking for another team and support Alan "KiWiKiD" Nguyen has plans to join NRG Esports as its starting support, sources say.

While no roster is set for the second Apex squad, the organization has interest in obtaining support Kevin "KonKwon" Kwon, who is on his way out of NRG Esports and will likely be replaced by KiWiKiD this week, according to sources close to the organization.

Unlike previously, Apex will not sell its LCS slot this time around. Last year, Team Coast, which was owned by Apex owners David and Michael Slan, sold its LCS slot to NRG Esports, while simultaneously acquiring Team Imagine's Challenger spot. Now Apex has plans to retain both the LCS spot and the Dignitas Challenger spot to have two teams under the organization's umbrella.

The remainder of the roster won't need to be set until the beginning of June, as the summer leg of the Challenger Series won't begin until June 15. Due to Team Dignitas' relegation from the LCS -- after a 3-0 loss to Team Dragon Knights on April 6 -- the spot is automatically qualified for that part of the series.

Team Dignitas was one of the four original members of the LCS, competing in the series since 2013 alongside Team SoloMid, Team Curse (now Team Liquid) and Counter Logic Gaming.

Dignitas' departure comes as a shock to many, because as of eight months ago, the organization had two teams -- one in North America and one in Europe. It ultimately decided to sell its European squad because of Riot Games' rule forbidding one organization to own more than one team in the professional leagues.

It ended up selling that spot to new esports organization Splyce. That team also faced relegation in Europe, but managed to stay in the league after beating Giants Gaming.

Team Dignitas has declined to comment for this report.