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

It’s been a while now that Legacy esports organization, FaZe Clan, has been struggling for profitability. As per a shareholder deck posted by FaZE a few months back, the company recorded roughly $14 million in losses for Q1 2023. This is a significant dip from the net loss of $9.5 million recorded in the previous year. The news came as another major blow for FaZe.

FaZe, the 2021 Call of Duty League champions, faced losses both in terms of content revenues and partnerships. Similarly, a report from Tobias Seck of The Esports Advocate suggested that FaZe revenues from content dropped from $4.6 million to $3 Million since Q1 2022.

As far as the sponsorship side is concerned, their revenues dropped from $8 million to $6.2 million. In all, FaZe disclosed that they as an organisation have been facing a year-over-year decline of over $3.2 million.

In an official comment from FaZe, the spokesperson was quoted saying that Q1 2022 revenues were unusually high because of a one-off library deal for the content of one of our talent, along with a high-budget, high-revenue content strategy. thus the company had ultimately abandoned these causes.
Finally, the company was only able to profit $469,000 in Q1 this year, which was much less than the $3 million from Q1 2022.

This news affected FaZe badly, since the organization is already recovering from the loss of high-profile team members like Snoop Dog, who also served on their board of directors. As reported by Kotaku’s Luke Plunkett, the pop singer and rapper exited the company back in March, which left FaZe not in the position to execute many of its social media marketing plans.

Nonetheless, FaZe stated that they plan to continue its commitment to fostering esports talent. They said they wished to diversify their reach by introducing non-gaming talent to their gaming universe. With this approach they aim at showcasing the diverse and dynamic nature of FaZe as an organization that transcends the boundaries of traditional gaming and esports.

FaZe Clan team made history being the first esports organization to go public on NASDAQ last year in 2022. Ever since then their journey to growth has been only getting difficult.