FaZe Clan is one of the biggest names in esports. They operate teams in most of the major games. The clan is even publicly traded. FaZe Clan is an esports stock that anyone can invest in following their recent merger, but it seems that’s failed to generate the revenue they wanted. This week has seen a few big developments for the team. They’ve announced a FaZe McDonald’s partnership. That’s along with more information on their funding failure.
The new partnership will see FaZe team up with the fast-food giant for esports-related content. It isn’t all bright news though. FaZe has also released information about failing to reach its target for rising finances by $100 million dollars. These are the developments with the team and what it all means.
This week FaZe Clan filed papers with the SEC to explain that they had failed to generate as much funding as they expected. The company merged with B. Riley Principle in July, which FaZe expected to raise significant funds to fuel expansion. The amount raised turned out to be quite a bit less than expected though.
FaZe Clan only raised around $100 million. This was put down to stockholders redeeming more than they expected along with increased costs. This means FaZe is going to have significantly less money for expansion than they had hoped. This could cause delays in their plans or even put a hold on expanding into new games.
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The filings were interesting for other reasons too. One key part was disclosure of where FaZe makes money. FaZe Clan relies on sponsorships for most of its income, being 60% of its total revenue. A sponsorship with G.Fuel specifically is responsible for 12% of the company’s revenue as a whole. The FaZe McDonalds partnership is the newest partnership, but they depend almost entirely on sponsorships.
This week also saw FaZe Clan and Mcdonald’s renewing a partnership to work together. This will start with combined efforts at PAX West. The two companies will be working on original content and IP. These will follow up on live streams they’ve held over the last year. We don’t know the exact types of content that they are going to produce. However, we can likely expect Mcdonald’s branding and sponsorships on some special FaZe Clan streams from their content creators.
Partnerships with new brands like Mcdonald’s definitely elevate FaZe Clan. However, it doesn’t do much to expand out what the team is doing. The FaZe McDonalds partnership is good for the team, but it doesn’t look like it’ll help too much to cover the shortfall from their fundraising. Fans of FaZe Clan probably don’t need to worry about them going out of business though.
The team still brings in plenty of revenue. While they failed to raise as much as they wanted, the team has been pretty successful since becoming a publicly traded company. As an esports brand, FaZe is one of the biggest. While their rollout and expansion might be going a little slower, they’re not going anywhere. Their CSGO team is one of the best in the world, recently winning a major. If you are interested in CSGO betting then make sure to check out our site where we have great offers readily available for you!
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eSports News 2021 | Esport Headlines & Betting News