The popular gaming and influencer collective, FaZe Clan, is facing a severe internal crisis. This week, five of its prominent members publicly announced their departure following the collapse of contract renewal talks with the group's new management.
Core Members Walk Out
The influencers known as Adapt, Jason, Ronaldo, Lacy, and Silky all took to social media platform X to declare they had left FaZe Clan. The group's official website lists six members, and with these exits, only one member, Rage, has not publicly stated he is leaving. Adapt's post was particularly poignant, stating, "14 Years. Over half my life, I'd be lying if I said this didn't hurt, but it had to be done."
The breakdown in talks reveals deep financial and structural issues within FaZe. Matt Kalish, the CEO of HardScope—a key investor in FaZe—described the group's current financial model as "unsustainable." Kalish, a co-founder of DraftKings Inc., began investing in FaZe last year and claims to have poured $10 million into the talent group over the past 18 months to expand their careers.
A Clash of Visions and Control
Kalish offered the influencers, who had been operating from a multimillion-dollar Los Angeles mansion, a choice: go independent or sign new deals with HardScope. After negotiations that lasted about six months, Kalish ended talks last week. He plans to continue FaZe's operations without the departing members.
"My best guess is they're all good kids and have a lot of people in their ear and are confused," Kalish said in an interview, adding that FaZe had subsidised many of their expenses. However, a source familiar with the discussions stated that the influencers found the terms offered by Kalish to be unfavourable.
The feeling of a loss of control was echoed by another influencer, PlaqueBoyMax, who left in August. In a recent livestream, he explained, "We have no control. There was no control, and it's like we're puppets. At least that's what it felt like."
From YouTube Pioneers to Penny Stock
Founded in 2010, FaZe Clan started as friends posting gaming videos on YouTube. They pioneered the "group-house" model and grew into a major esports and content brand with huge sponsorship deals. Its journey took a dramatic turn after going public in 2022 with an anticipated $1 billion valuation. The company's stock has since become a penny stock, with critics pointing out its over-reliance on brand sponsorships as an unstable growth model.
Leadership turmoil has been a constant. In 2023, CEO Lee Trink was fired over allegations of poor spending and disagreements with talent. The esports division of FaZe now resides with GameSquare Holdings Inc., which acquired FaZe's parent company for $17 million in 2023.
Kalish launched HardScope with the aim to "turn creators into next-gen media moguls," connecting sponsors and fans with streaming personalities. The departure of its core members marks yet another pivotal and uncertain chapter for FaZe Clan, raising serious questions about its ability to survive and reinvent itself in the fast-evolving digital entertainment landscape.
