By Lauryn Robinson, GWU 2L
Turner “Tfue” Tenney is known around the world as one of the best esports players in the industry. With his pending lawsuit against FaZe Clan (“Faze”), a premier esports organization, Tenney may earn a new title: the esports player who transformed workers’ rights for all influencers.
In 2018, Tenney signed a Gamer Agreement (“Agreement”) with Faze. The Agreement entitled Faze up to 80 percent of the revenue paid to Tenney by third parties. Any income generated by Tenney during the Agreement was payable to Faze and distributed to Tenney on a monthly income basis. However, Tenney claims Faze materially breached the agreement when it failed to distribute the funds.
On May 20, 2019, Tenney filed suit against Faze in the Superior Court for the Central District of California. Tenney alleges the Agreement violated the California Business and Professional Code §16600 (“Section 16600”) because of its illegal yet conspicuous anti-competition provisions. The Agreement’s Terms and Conditions titled “Exclusivity and Matching Right” (“Section 5”) stated Faze shall have the exclusive approval over any and all third-party requests for Tenney’s services. In the Complaint, Tenney argues Section 5’s contractual language violates Section 16600 because it illegally places restraints on trade. Tenney further asserts the Agreement violates the California Talent Agency Act because of its continuous and systematic attempts to procure employment for Tenney without a license. The California Talent Agency Act states businesses and individuals can only act as an agent with a license obtained through California’s Labor Commissioner. Entities who operate without a license may have commissions returned to the client or void all negotiated contracts.
Faze fired back with a countersuit in the New York Federal Court in August 2019. Among other claims, the company alleges (1) breach of contract, (2) misappropriation of trade secrets, (3) commercial disparagements and (4) unjust enrichment. In the filings, Faze attributes Tenney’s success to teachings on business, social media and gaming practices Tenney learned during his tenure with Faze. Faze also believes without their efforts, Tenny would not have over 10 million followers as one of the most popular streamers on Twitch.
In the weeks following Tenney’s lawsuit, concerns arose about the current Faze roster. Gaming partner and roommate Dennis “Cloakzy” Lepore entered into an agreement with terms that favored his “future departure” from Faze. Although Lepore publicly stated his decision was independent of the lawsuit, his actions led to speculation within the esports community that the Tenney suit played a role. Specifically, once Lepore read Tenney’s public filings, which revealed the terms and conditions of his employment agreement, Lepore now had information to better suit him for future negotiations. This is exactly why Faze asserted that Tenney has blatantly violated the Agreement’s Confidentiality Clause. Faze knew the release of such confidential information could potentially interfere with other current talent.
Tenney’s complaint echoes those of professional athletes who fought for players’ rights such as Tom Chambers (NBA), Freeman McNeal (NFL), Curt Flood (MLB) and soccer’s Jean-Marc Bosma. While many of these pioneers in traditional sports opened up free agency for their respective sports, some, like Flood, suffered from their stance. Where Tenney will sit in the history books is yet to be seen. But, one thing is for sure, his bold steps have moved esports into the footsteps of traditional sports, good and bad.
FaZe Clan, Inc. v. Tenney, case number 1:19-cv-07200, in the U.S. District Court for the Southern District of New York.
Tenney v. FaZe Clan, Inc. et al., case number: 19STCV17341, in the Superior Court of the State of California Los Angeles
