RusBankrot
We know everything about bankruptcy
22/02/2026
Sunday
THIS DAY IN HISTORY:
22 February 
1970 The death penalty was abolished in Ukraine
1970 The death penalty was abolished in Ukraine
1970 Dr. Zelman Waxman discovered the streptomycin antibiotic
1970 Dr. Zelman Waxman discovered the streptomycin antibiotic
1970 Spain sold Florida to the United States for $ 5 million
1970 Spain sold Florida to the United States for $ 5 million
22 February
1970 The death penalty was abolished in Ukraine
1970 The death penalty was abolished in Ukraine
1970 Dr. Zelman Waxman discovered the streptomycin antibiotic
1970 Dr. Zelman Waxman discovered the streptomycin antibiotic
1970 Spain sold Florida to the United States for $ 5 million
1970 Spain sold Florida to the United States for $ 5 million
FaZe Clan's dilemma - to become the richest organization in eSports or to go bankrupt
A professional entertainment organization from the US, operating in the eSports industry, is about to go bankrupt. The situation may be affected by the losses found during preparation for the firm's entry into the public stock market. Prior to this, experts estimated the possible capitalization of the company in the event of a successful entry to the NASDAQ at $1 billion.
It was announced that the multi-gaming organization could team up with B. Riley Principal (stock symbol BRPM) to do this. Last year, FaZe representatives said that the SPAC company, which had experience in conducting similar transactions with private firms, should help the organization with going public.
The organization, which appeared to be a fairly successful sports business, will now be forced to look for new reserves. It is known that the company generates more than half of its income from sponsors, advertising (Burger King is among its major partners), merch sales and tournaments.
McDonald’s became FaZe’s partner last August, followed by a DC Comics a month later. In March 2022, it became known that rapper Snoop Dogg, who would become a member of the board of directors, joined the project. But whether all these activities will bring additional profit is not yet clear. And although the company is still far from the real bankruptcy, the entry into the public stock market may be indefinitely postponed.
As a result, one of the participants in the scandal (Kay) was fired, the other (Jarvis) stopped cooperation himself. The fate of another member (Nikan) is still unknown. The fourth specialist (Teeqo) returned to the company in September 2021 and continued to work.
It was announced that the multi-gaming organization could team up with B. Riley Principal (stock symbol BRPM) to do this. Last year, FaZe representatives said that the SPAC company, which had experience in conducting similar transactions with private firms, should help the organization with going public.
Both investors and eSports fans were keenly interested in a possible merger. However, the US Securities Commission revealed unpleasant details of the business during the audit.
It turned out that the financial success of the company in 2021 was noticeably lower than experts expected. Instead of the expected loss of $19 million in EBITDA (before taxes, interest and other expenses), the company's losses reached $29 million. And although the company itself believes that the audit standards became the reason for such a discrepancy between the real state of affairs and previously predicted results, many experts say this causes understandable confusion.The organization, which appeared to be a fairly successful sports business, will now be forced to look for new reserves. It is known that the company generates more than half of its income from sponsors, advertising (Burger King is among its major partners), merch sales and tournaments.
McDonald’s became FaZe’s partner last August, followed by a DC Comics a month later. In March 2022, it became known that rapper Snoop Dogg, who would become a member of the board of directors, joined the project. But whether all these activities will bring additional profit is not yet clear. And although the company is still far from the real bankruptcy, the entry into the public stock market may be indefinitely postponed.
Experts note that, despite the problems, the organization continues to make generous payments to its leaders. In particular, Kai Henry turned out to be the highest paid director of strategic development. He received a $2.91 million reward from the firm in 2021.
FaZe Clan has been involved in fintech scandals before. In July last year, four members of the company were involved in fraudulent operations with cryptocurrency (altcoin). By creating an artificial hype and encouraging subscribers to invest in digital assets under the pretext of participating in charity, participants rushed to get rid of the assets as soon as they skyrocketed in value.As a result, one of the participants in the scandal (Kay) was fired, the other (Jarvis) stopped cooperation himself. The fate of another member (Nikan) is still unknown. The fourth specialist (Teeqo) returned to the company in September 2021 and continued to work.
04.05.2022
