In a barrage of Instagram story posts calling out FaZe Clan, Nordan ‘Rain’ Shat claimed that the organization loses hundreds of thousands of dollars on esports every month.
FaZe Clan stalwart Rain has been in an ongoing public battle with the company’s higher-ups. He has made his opinions on the direction of the now-public company known and has even threatened to leave FaZe if those in charge did not remove Sebastian ‘Cbass’ Diamond, one of FaZe’s founding members and its director of social media, from the company.
On May 21, Rain again hit out against FaZe Clan on his Instagram story. This time, he called out the company for recruiting Nick ‘NICKMERCS’ Kolcheff as “damage control” during its legal battle with former member Turner ‘Tfue’ Tenney, along with claiming that FaZe loses hundreds of thousands of dollars on esports each month.
Rain says FaZe loses six figures on esports a month
On his Instagram story, Rain wrote that FaZe losses $700,000 a month on esports and said that the guy who makes “these terrible decisions” is the President of FaZe. FaZe Clan’s current president is Zach Katz, whose background is in the music industry. He joined FaZe in 2022.
In the company’s 2022 fourth-quarter financial results, Faze made $70 million in revenue but closed its first financial year as a public company with $53.2 million in losses. The company’s SEC filings do not lay out specifically how much of those losses come from esports spending. However, FaZe does have many teams under its umbrella that would demand a lot of cash to run.
FaZe has teams in Rocket League, Apex Legends, Rainbow Six Siege, PLAYERUNKNOWN’S BATTLEGROUNDS, CS:GO and two squads in Valorant. The organization also has Super Smash Bros. Ultimate, FIFA and Fortnite players signed with them. The company also owns a slot in the Call of Duty League as the Atlanta FaZe.
In the company’s letter to its shareholders, FaZe said it does not plan to slow down spending on esports anytime soon.
“Esports will continue to be a critical driver of the FaZe brand and a central point of engagement for many of our fans. As we expand other revenue streams, we expect esports will continue to grow but contribute less of the pie. This is healthy and expected, and you’ll see us continue to invest in keeping FaZe teams at the top of the leagues in which they compete,” the company said.
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