Tfue Files Case Against FaZe, Alleging Contract Signed Is One-Sided

In what is sure to create a ripple effect on how esports organizations handle their talent, Turner “Tfue” Tenney has filed a lawsuit against his own team, FaZe Clan. In the suit, Tfue alleges that FaZe Clan took financial advantage of him through a contract that he considers exploitative.

Tfue is a Twitch streamer and plays competitive Fortnite Battle Royale under the FaZe Clan banner. Currently, he has around 6 million followers on Twitch and about 10.7 million subscribers on YouTube.

The lawsuit was filed in Los Angeles and according to Tfue, the contract the he signed when he was 20 years old with FaZe was one-sided. Specifically, Tfue cites the part of the contract that entitles FaZe to a finder’s fee of as much as 80% of the revenue paid by third-parties to Tfue. What this means, according to the suit, is that any revenue that Tfue earns from sponsored videos on both Twitch and YouTube, around 80% of it goes to FaZe.

Further, Tfue alleges in the suit that his agreement with FaZe violates the Talent Agency Act of California. Tfue adds that despite not having the needed talent agency licenses, FaZe remains to be the one to get, or attempt to procure, engagements and employment for Tfue as an artist.

In answer to the allegations, FaZe said that the claims were inaccurate. According to the organization, the partnership with Tfue started in April 2018, and since then it has only collected $60,000. The organization has not collected anything from Twitch and YouTube revenues, or any social media platform for that matter. FaZe has also not collected anything from Tfue’s tournament winnings.

Tfue has responded with a YouTube video saying that the issue at hand is the contract that he claims he signed without knowing any better. He tells his subscribers that these types of contracts are not okay. Since he is not allowed to disclose the contract, Tfue is challenging FaZe to open the contract to the public and has started a #ReleaseTheContract hashtag.

Many people in both the esports community and YouTube content creation community are interested in this case, especially what the effects might mean for future contracts. Tfue’s contract is a long standing practice in a community that continues to be unregulated. A problem typically arises when the popularity of the gamer and/or streamer explodes and both the player and team did not anticipate the increase in revenue.

For those interested in knowing more about the case, you can read it here.