The basis of FaZe Clan’s lawsuit is that Tfue violated his contract by disparaging the company, trying to form a new esports organisation, stealing their confidential information and interfering with the team’s other business contracts and relationships, as reported by ESPN.
Tfue originally filed his lawsuit claiming that the contract he was being to was oppressive, with FaZe able to take 80% of his earnings and 50% of his sponsorship, amongst other details – with FaZe responding that they never actually collected that money and that a far more lucrative contract had already been offered to Tfue, offering a seven-figure payment.
FaZe Clan CEO Lee Trink told Bloomberg on Thursday that it hoped to resolve the matter privately, but that a settlement between the team and the player became impossible.
Tfue’s lawyer, Bryan Freedman, was quick to respond. “This is the first time in the history of esports that an organisation has had the audacity to try and enforce contractual provisions that are so clearly illegal.”
He also sent a statement to The Hollywood Reporter, saying the following:
“Faze Clan’s lawsuit in New York is a ridiculous and obvious attempt to avoid the consequences of its clear violations of California law. Filing the lawsuit in New York is actually an admission that Faze Clan has no defense to these violations of California law. Ask yourself, why is Faze Clan is afraid to litigate its wrongful conduct in California? The answer is obvious. Faze Clan will lose. In the New York lawsuit, Faze Clan actually admits to violating California’s Talent Agencies Act by procuring employment without a license. Equally egregious is the fact that Faze Clan is suing Turner under its illegal contract for the monies it publicly represented that it was not collecting. This is the first time in the history of Esports that an Organization has had the audacity to try and enforce contractual provisions that are so clearly illegal against one its gamers.”
FaZe Clan claims it has collected just $60,000 from Tfue, who has earned an estimated $20m since joining FaZe Clan according to members of the organisation.