FaZe Clan Influencers Exit Over Contract Dispute With New Owner
(Bloomberg) — The future of popular influencer group FaZe Clan is changing once again after several members announced their departure this week following failed contract negotiations with new management.
Members known as Adapt, Jason, Ronaldo, Lacy, and Silky all shared that they left FaZe in X. The band’s website lists six members, and only one of them, Rage, has not publicly announced his departure.
“14 Years,” Adapt said online. “I’d be lying if I said it didn’t hurt for more than half my life, but it had to be done.”
None of the members responded to requests for comment.
According to Matt Kalish, CEO of FaZe investor HardScope, FaZe’s current financial structure is “unsustainable.” It gave influencers operating from multimillion-dollar Los Angeles mansions the option of going independent or signing with HardScope. It ended talks with them last week and plans to continue without them.
“My best guess is they’re all good kids and they have a lot of people in their ears and they’re confused,” Kalish said in an interview. He added that FaZe subsidizes most of its expenses.
Influencers thought the terms Kalish proposed were inappropriate, according to a person with knowledge of the discussions who asked not to be identified. Negotiations have been going on for about half a year.
Another FaZe influencer, PlaqueBoyMax, left in August. He explained the reason for this in a live broadcast on Thursday.
“We have no control,” he said. “There was no control and it was like we were puppets. At least that’s what it felt like. Do you know what I’m saying?”
Kalish, the co-founder of sports betting site DraftKings Inc., began investing in FaZe last year. It said it has invested $10 million into its talent group over the past 18 months to expand their careers.
Kalish started HardScope as a way to “transform creators into the next generation of media moguls.” The business connects sponsors and fans with people who stream content on sites like Twitch.
Founded in 2010, FaZe started when a group of friends posted the video games they played on YouTube. They were among the pioneers of the group house concept, where players lived and streamed together. As its online audience has grown, FaZe has expanded into esports teams and million-dollar sponsorship deals.
Following an expected $1 billion valuation when the company goes public in 2022, FaZe has become a penny stock amid concerns that the company’s core business model (sponsorships with brands) does not provide a stable foundation for growth.
FaZe influencers have competed under various leadership arrangements. In 2023, the company ousted Chief Executive Officer Lee Trink following allegations of poor spending decisions and conflicts over talent.
FaZe’s esports organization remains with GameSquare Holdings Inc., which acquired FaZe’s parent company for $17 million in 2023.
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