article-img

Faze Clan Fires CEO After Losing Over $14m in Q2 2023

10 months ago By AI Smith

Faze Clan, a popular esports organisation that was once synonymous with the esports space, has fired CEO Lee Trink. CFO Christoph Pachler will take over for Trink on an interim basis, Bloomberg reports.

In its early years, Faze Clan acquired an extravagant and swaggering reputation. The company ran teams in a variety of esports games, produced gaming-related content for social media sites like Twitch and Snapchat, and offered branded clothing. Trink sought to portray Faze as a youth-oriented cultural and leisure brand when he took over as CEO in 2018, having no prior experience in the esports industry. On a 2019 episode of The Vergecast, he declared, “We are the voice of this current gaming generation,” and equated the growth of his business to that of hip-hop. Near the end of 2021, the company had a close to $1 billion valuation.

However, Faze Clan has suffered significant losses under Trink’s direction, including an estimated $48.7 million from operations in 2017, according to Bloomberg. Shares have fallen from almost $20 to 18 cents. Faze Clan had more than $70 million in debt by the end of 2021, the year Trink started joking around the idea of going public. It has been stated that the majority of its teams are unprofitable, and just in 2023, it has announced two waves of layoffs.

In interviews with Bloomberg, seven former employees warned of “a mismanaged organization marked by poor spending decisions, excessive pay, and expansion into unprofitable categories like esports.” Notably, the corporation spent up to $60,000 per month renting a number of expensive homes. The staff members said that Trink “took FaZe’s influencers to upscale Los Angeles steakhouses and wore a diamond-encrusted necklace featuring FaZe’s “F” logo.”

Employees of Faze Clan have recently become involved in a variety of other disputes. The company came under fire most noticeably for its contract work with English YouTuber Sam Pepper, who has been accused of sexual harassment on numerous occasions. An insider “with knowledge of the company’s sales” told Bloomberg that incidents surrounding Pepper have made it more challenging for the company to find sponsors.

ALSO READ: FaZe Clan Lose $14M In Q2 2023, All Reasons And Controversies

As advertising expenditures have shrunk, the traditionally sponsorship-dependent industry of esports has experienced sharp losses in recent years. Companies from all around the sector have reduced staff. Activision Blizzard fired about 50 workers from its esports division earlier this summer. One fired employee at the time told The Verge, “I can only speculate that Activision Blizzard is closing its esports division.”

Before becoming the organization’s CEO in September 2018, Lee Trink first joined FaZe Clan in 2016 as an advisor. That was almost precisely five years ago. He oversaw the company’s significant growth, reinvention into a lifestyle brand, and NASDAQ public listing when he was at FaZe.

On the competitive front, FaZe teams won a number of prestigious competitions during his leadership, with the Call of Duty League in 2021 and the PGL Major Antwerp in CS:GO in 2022 maybe deserving the most attention.

More Recommendations
Unlock a World of Endless Discoveries: Your Personalized Recommendation Engine
article-image

As a fan of the epic and enduring adventure of One Piece, you understand the challenge of keeping up with… Read More

9 months ago AI Smith
article-image

FIFA fans are in for a treat with the upcoming launch of EA Sports FC 24 Web App. Anticipation is… Read More

10 months ago AI Smith
article-image

Guwahati, Assam – The vibrant city of Guwahati is experiencing an exhilarating surge in the popularity of manga, all thanks… Read More

10 months ago AI Smith
article-image

Overwatch 2, the highly anticipated sequel to Blizzard Entertainment’s acclaimed team-based shooter, has been a topic of excitement and speculation… Read More

11 months ago AI Smith
article-image

Pokemon Go, one of Nintendo’s most famous and loved games, challenges its players on every level. Players are expected to… Read More

1 years ago AI Smith
article-image

“Zom 100: Bucket List of the Dead,” a live-action adaptation of the popular manga series created by Haro Aso and… Read More

11 months ago AI Smith
Stories Going Viral
Unleashing the Power of Stories
article-image

In a groundbreaking announcement from Apple, the iPhone 15 Pro and Pro Max are set to redefine the gaming experience… Read More

10 months ago AI Smith
article-image

Valorant, the popular tactical shooter developed by Riot Games, has taken the gaming world by storm since its release. However,… Read More

10 months ago AI Smith
article-image

If you’re a fan of isekai adventures and captivating storytelling, get ready to mark your calendars. The popular Re:Monster isekai… Read More

10 months ago AI Smith
article-image

The craze for the Grand Theft Auto (GTA) 6 release has resulted in many fans doing everything they can to… Read More

9 months ago AI Smith
article-image

Hey One Piece fans, get hyped for the next big episode! Episode 1087 is dropping on Sunday, December 10, 2023,… Read More

7 months ago AI Smith
article-image

For ardent fans of the beloved One Piece series, the anticipation for each new installment is akin to waiting for… Read More

9 months ago AI Smith
Join Our Exclusive Newsletter and Stay in the Loop!