TEA Dispatch for the Week Ending April 18, 2024
Scump and H3CZ lawsuit dismissed and headed to arbitration, FaZe OG take the reins of a new GameSquare subsidiary called FaZe Media.
Did the 30 teams that were accepted into the Esports World Cup Club Support program violate Federal Trade Commission (FTC) laws in the United States (or similar guidelines from agencies in their own home countries) earlier this week when they gleefully advertised their participation in the Esports World Cup this summer in Riyadh, Saudi Arabia? Putting aside the regions that won’t care (namely any organization in China, Russia, or the Middle East), because these teams receive compensation for promoting the event, these are clearly marketing efforts for money.
Let’s all explore this together later this week. Stay tuned. In the meantime, here’s some of the most important news of the week from The Esports Advocate and other fine publications around the world! - James Fudge.
Faze Up With $11M
GameSquare has launched a new division specifically built to leverage the brand and talents of FaZe Clan called FaZe Media. The new subsidiary combines the remaining FaZe creator talent roster and its non-esports assets into “a creator-led IP and internet media company” that will be led by original FaZe Clan co-founder and current CEO Richard Bengtson, better known to the world as FaZe Banks.
In conjunction with the launch of the new FaZe Media division, GameSquare announced that it has closed a $11M USD investment capital deal with Matt Kalish, who is best known as the co-founder of Draft Kings. Kalish and GameSquare CEO Justin Kenna will serve on the board and in governance roles.” GameSquare also noted that it will continue to own 100% of the esports teams under FaZe Gaming, according to the announcement. READ MORE.
💡 No More Excuses: Banks and other longtime FaZe members have claimed for years that the organization was stolen away from them and mismanaged by greedy corporate types who didn’t understand the culture and intent of the brand. With FaZe now in his control, Banks has a chance to show what it means for FaZe to be run by the people that created it. Can they generate content that fans want, leverage the brand in an authentic way and—most important of all to GameSquare management and investors—generate revenue? Time will tell.
H3CZ, Scump Case Dismissed, Headed to Arbitration
In February TEA reported that retired Call of Duty pro player Seth “Scump” Abner and OpTic Gaming founder Hector “H3CZ” Rodriguez had filed a lawsuit against Activision Blizzard for $680M, claiming that its Call of Duty League was an unfair monopoly that has caused financial injury to both players and team owners. In March, we reported that the plaintiffs and the defendant agreed to put aside the case to determine if the arbitration clauses in their contracts were legal and binding in a hearing before an arbitration tribunal.
TEA has learned that U.S. District Court Judge Percy Anderson signed an order dated March 11 dismissing the case, noting that because the claims are subject to arbitration, the case has been dismissed. From the court filing:
💡 Catalyst: While Rodriguez, Scump, and Activision Blizzard hash things out before an arbitrator (which is hired by Activision Blizzard, in case you don’t understand how arbitration typically works) It is probably not a coincidence that, following the filing of this lawsuit, Activision Blizzard’s Call of Duty League suddenly changed the way it shared revenue with franchised teams. No matter what happens with Scump and H3CZ in arbitration, they had a hand in getting orgs some major benefits in the league, and deserve some credit for being the park that made Activision Blizzard jump.
Other News From The Esports Advocate
Riot Games Expands Cisco League of Legends Esports Partnership
Edward Gaming Generates $690K in Revenue From Valorant Weapon Skins
Netherlands Regulator Fines Epic $1.2M for Fortnite Advertising
Chinese Pop Singer Hua Chenyu Invests in LGD Gaming’s PEL Team
British Esports Announces New Women in Esports Committee Members
Team Vitality Secures All-Women Mobile Legends: Bang Bang Roster
News of the World
🤷🏼♂️ Has Sports Business Journal given up on esports?
🏆 Gen.G wins the biggest prize of all at MSI.
💰 Enthusiast Gaming reports Q1 2024 financial results.
🤼♂️ Esports Stadium Arlington lands All Elite Wrestling deal.
🌞 Summer Games Fest reveals 2024 partners.
👿 Former OG Esports Dota 2 player admits to match fixing.
🤔 Nadeshot on his role with 100 Thieves.