It has been revealed through a recent SEC filing that ‘up to’ 62.5% of FaZe Clan’s outstanding shares are to be sold, including those owned by the organisation’s owners and founders. This includes the likes of Temperrr, Banks, Apex, and Rain. This news comes amidst an ongoing financial decline that has seen FaZe Clan plummet dramatically in value over the course of the last ten months.
Since the beginning of February, FaZe Clan’s stock has failed to reach a value above $1 on the NASDAQ, which it joined less than a year ago, in August 2022. It was around that time that FaZe Clan’s value peaked, reaching a monumental height at $1.86 billion – but today, it’s worth just $35 million.
How Far The Mighty Have Fallen
For more than a decade, the title ‘FaZe Clan’ has been synonymous with competitive gaming and content creation. Since 2010, the brand name has been growing across all aspects of the industry, from esports to streaming and from merchandise to sponsorships.
It’s arguably the most recognisable brand in gaming, but in recent months, it has been on a path of disrepute, financial ruin, and controversy.
From in-fighting among the Clan’s members to a collapsing stock value, FaZe has had a tough time of late. It hasn’t been a bumper few months for the organisation’s esports performance, either. In fact, in the last year or so, only the company’s CSGO and Rocket League teams have really produced any sizeable results.
In the last year, FaZe Clan’s Rocket League squad secured approximately $700,000 in tournament winnings, while the CSGO team went on a monumental spree, raking in more than $3 million in winnings in a single year (data from Liquipedia).
That ultimately means almost nothing now – especially considering how tournament winnings make up very little of an organisation’s profit base.
Now, the major stakeholders in FaZe Clan are listing their shares for sale as things fall further down, potentially past the point of no return. There are concerns circulating internally at the moment owing to a warning that’s hanging over FaZe’s head from the NASDAQ, but at present, the sale of such a majority of shares could mean that a private company snaps the brand up in full and delists it anyway.
That’s something that was rumoured to be happening mere weeks ago, though – so it’s certainly on the table, but will it save FaZe?
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