Snoop Dogg leaves FaZe Clan amid financial trouble

Less than a year after joining FaZe Clan, the famous rapper Snoop Dogg decided to leave the organization in the middle of a very difficult financial situation for the club that recently won the Intel Grand Slam in CS:GO and had one of the best years in its history in 2022.

To some, it may come as a surprise, but esports as a whole is actually in a lot of financial trouble. FaZe Clan is just one of the organizations that struggle to be profitable and when finances become a problem, a lot of other things become problematic.

The context of Snoop Dogg leaving FaZe Clan

FaZe Clan is listed on the stock exchange and its share price dropped from $20 in August 2022 to $0.50 today. That’s a massive devaluation. Essentially, around 95% of the company’s value was completely wiped out.

When he first joined the organization, Snoop Dogg was offered around $2 million in shares. But his involvement in promoting the company was almost non-existent. In one year, he made very few appearances that benefited FaZe and they didn’t seem to make a big impact.

He simply lent his name to FaZe and allowed himself to be associated with the brand, probably hoping to benefit his own. Esports is quite a large industry and millions of new people discover it every year. In total, it’s estimated that more than half a billion people know about esports around the world, which makes it a major industry.

But in terms of revenues, esports is very small compared to other industries, and a lot of the top companies are struggling to make money, as reported by independent journalists like Richard Lewis, as well as insiders like Charles White, who actually own an esports team and know exactly what goes on behind the scenes.

According to the SEC filing, Snoop Dogg left FaZe Clan’s board of directors for reasons that have nothing to do with disagreements between himself and the company or any of its subsidiaries. This was a purely business decision and it makes sense in the context of what is happening with the company.

The stock owned by Snoop in FaZe Clan does not vest until 2024, which means that he will have lost most of his money by the time he gets to sell it.

What will be interesting to see is how FaZe Clan deals with the whole situation and more importantly, how esports as a whole will survive the upcoming financial crisis.

Header: FaZe Clan