After being faced with multiple scandals over the last couple of years, it looks like FaZe Clan at last is coming to an end.
FaZe Clan is one of the biggest esports and gaming organisations out there, with a huge cast of popular content creators, esports athletes and even some celebrities. It has an enormous fan base of more than 510 million people and wins trophies across multiple games. So how is this successful esports clan dying? Well, hear me out.
FaZe Clan Killing Their Brand
In the last couple of years, FaZe Clan has made a lot of business deals building their brand, like signing celebrities into the org, get on the cover of Sports Illustrated or at buzzy parties at the company’s Los Angeles headquarters.
All of this is rather expensive, though, as Snoop Dogg alone cost them $1.9 million in stock, a spot on the company’s board of directors, as well as $248,000 worth of stock each to his son and companies controlled by his spouse and his manage. That's quite a lot of money!
And where does this money come from? As FaZe Rain recently revealed, they apparently extort it from their creators.
In his video, Rain is stating that he didn't get a single dollar from brand deals and is owed money. He goes further into detail, claiming that the bosses at FaZe Clan are milking the brand and fans, who think they're supporting their favorite creators. Apparently those creators don’t see a dollar of the profit.
If you want to get a PS5 to play your favorite games, this might just be your lucky day.
Since Rain posted his videos, exposing FaZe Clan, their stock dropped considerably.
FaZe Clan stock has dropped below $1, the "lockup period" is now also up for FaZe shareholders to be able to sell their stock pic.twitter.com/AMmdLgIlFy— Jake Lucky (@JakeSucky) January 20, 2023
This happened before the "lockup period" ended, so now FaZe shareholders are able to sell their stock as well.
We will have to wait and see how the situation develops from here on out, but things aren't looking too good for the esports organisation.
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