FAZE CLAN BANKRUPTCY: WHAT’S HAPPENED INSIDE THE CS:GO CLUB?
What's inside
At the beginning of the year, the organization set a goal to reach a new level of cooperation with various companies when trying to enter the stock market with the help of SPAC. Everyone said it was a new level and the income would increase. However, the brief stated that the loss was 29 million dollars rather than the expected 19 million dollars. Something isn’t clear: why is there such a big gap between the sums? To solve such problems, you have to find investors and sign contracts with new partners. Below, you can see what partner FaZe signed a contract with and why this deal is perfect.
Why is FaZe losing money?
One of the reasons can be related to finances. This is a scam involving cryptocurrency under the guise of supporting sick children. Four FaZe Clan employees arranged it. After this, the organization was flooded with a barrage of criticism and accusations because people did not give the money to help, but to the “pocket” of swindlers.
According to current information, these employees were fired. But it also affected the organization's reputation and economy. Maybe because of this story, some investors decided not to cooperate with FaZe. Definitely, we can say for sure that this situation has damaged the reputation of the organization.
FaZe Clan stock market shares
FaZe stock also recently plummeted to record lows. On January 12, FaZe Clan shares were selling on the stock exchange for $1.89. The next morning, their value increased dramatically to $2.25 before quickly returning to its previous level. Since then, the value of securities has begun to fall, which worsened on January 16 - the day the ban was lifted.
FaZe stock shares now trading for $0.7-0.9 Fans think the drop in the stock price is due to the loss of Thomas "Temperrrr" Oliveira in a boxing match to the English-language blogger KSI. One fan joked that FaZe Clan's shares fell 14% because of this. It is noteworthy that a drop in the stock price on the stock exchange could mess up the organization's financial component. Because of this, it is even harder to figure out what the future holds for the famous group.
Who is the owner of Faze Clan?
The growth of the media component is an increase in material income. But it only sometimes works. FaZe Banks is an American YouTube blogger, and one of the founders and owners of the eSports organization FaZe Clan. FaZe Clan CEO Lee Trinquier President is Greg Selcoy, and Director of Strategy is Kai Henry.
According to public sources, Kai Henry received almost $3 million in compensation (it is unclear what the compensation was for). It is known that the firm generates more than half its revenue from sponsors, advertising (among its major partners is Burger King), merch sales, and tournaments.
Last August, McDonald's became FaZe's partner, and a month later - DC Comics. In March 2022, Snoop Dogg joined FaZe Clan. The rapper will join the company's board of directors and be responsible for developing the business area.
What does the rapid change of partners have to do with it? The misunderstanding of management's internal conflicts or a bad financial contract. All of these are just our theories.
FaZe Clan bankruptcy?
At the end of the year, Forbes conducted its investigation and found that the organization lost $1,500,000,000 this year, and that figure continues to increase ninefold. Because of this, the organization could go bankrupt as early as the fall of 2023. Certainly, there is some truth in every rumor.
Still, it would be desirable to recollect one fact, even at the creation of FaZe Clan organization, they predicted bankruptcy almost every year. Dark times have come for this organization, and it is necessary to find its white line and grow higher. Whether it's true or not, you can decide for yourself, we only state this fact.
How much is the FaZe Clan worth?
What about earnings and income? One of the most successful disciplines in the FaZe organization is CS:GO. For the entire year of 2022, there was a profit of 400 million. Tournaments, sponsorships, clothing sales, advertising, and other revenue sources brought in between $50 and $60 million for the CS:GO roster. The figure may be more or less.
Summary
Despite the success of the CS:GO lineup in early and mid-2022, a huge fan base, and top contracts with various brands, FaZe still needs help with finances. However, the other day, it was reported that the automobile brand Porsche signed a contract with FaZe. Being partnered with a brand like Porsche requires a solid contract that can solve the organization's financial problems and generally cement its economic component.
Of course, some fans may be worried about rumors of bankruptcy, but they forget that even with the organization's creation, there were rumors about the lack of funds. So it’s impossible to predict anything here. Share your minds with Cyber-sport.io. Subscribe and follow the latest eSports news!
