Faze Clan controversy amid financial troubles
Faze Clan’s shares hit an all-time low, amid complaints from their streamers and financial difficulties.
The esports industry is in a difficult time financially, with several organizations cutting back on their ranks. However, one of the most affected currently is Faze Clan, which saw a sharp drop in its shares in the stock market, causing a controversy with its content creators and other personalities on the scene.
Faze Clan became the first Esports organization to be featured in Sports Illustrated. After partnering with B. Riley Principal, it became a publicly traded company but since last January, its share price has been in a tailspin, hitting an all-time low since it went public.
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The organization is not going through its best financial moment and acknowledged its mismanagement with a statement on social networks apologizing to the fans. “We hope all the OGs sit together soon, and we don’t want to do it without everyone. We will do everything in our power to resolve this and not let them down.”
This was in response to claims from its content creators who were part of its ranks, with akob “Teeqo” Swaerden being one of the last to show his dissatisfaction with the organization. The Swede, who has been there for 12 years, stated that he signed only one contract in all that time and that he even had to lend the team money for some transfers from the CS: GO squad.
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The current situation of Faze Clan is one of the topics of the moment among North American organizations, which even the executive director of 100Thieves commented on it. Matthew “Nadeshot” Haag said that the current situation is the responsibility of the company and that it is something negative for the entire esports industry, since its failure will make investors doubtful in this type of project.