Last week, esports organization FaZe Clan announced it cut ties with NBA player Meyers Leonard after he used an anti-semitic slur during a Twitch stream. In an announcement, the company specified that Leonard was not a “member” of FaZe Clan.
Back in June of 2019, Leonard posted a photo of himself in a FaZe Clan jersey saying he would be a “part of the premier organization.” However, FaZe Clan CEO Lee Trink later clarified the relationship between Leonard and the organization. Trink said FaZe ended its “public association” with Leonard even though Leonard continues to be an investor in the company. Regarding closing out Leonard’s position, Trink responded, “We discussed this option and it’s not legally permissible.”
In the wake of the incident, Leonard was fined $50,000 by the NBA and suspended from league activities for one week. His Twitch account was also suspended and he lost sponsorship deals with Origin PC and Scuf Gaming.
The Profit‘s Take:
FaZe Clan is the most badly managed team in all of esports. How many more negative stories do we need to see about the company to come to this conclusion? From a business standpoint, their organization is a complete mess. Anyone with a few thousand dollars can just call themselves a FaZe Clan investor because FaZe has taken money from everyone and anyone to finance their continued cash burn.
(All information was provided by The Washington Post)