By Ethan Chaiet, 2L, Villanova University – Charles Widger School of Law
Overview
In 2010, a group of professional video game players formed the FaZe Clan, a YouTube channel and gaming conglomerate that quickly rose to popularity among the online community.[1] After accruing several Esports championships, along with a significant following due to its distinctive style and approach of melding esports, traditional sports, pop culture, and content creation, the company decided to go public and was listed on the NASDAQ.[2] FaZe Clan’s market value peaked at $1.86B in 2022, before ultimately suffering a financial collapse that had the stock trading at $0.50 a share.[3] These struggles led to a company reboot and mass layoffs that saw 110 employees terminated and 17 creators dismissed from the organization.[4]
As the dust settled on these organizational changes, FaZe Clan planned what it termed a “legendary month,” where they would get back to FaZe Clan’s origins and launch fun new streams and a video series.[5] Instead, on August 26th, a representative from the company stated that the group had been evicted from their filming location, and given a weekend to pack up and find a new place to shoot. [6] The eviction was attributed to the company’s “prank wars,” which involved the content creators throwing a PC and mattress into the pool, among several other instances of property damage.[7] Members of the organization expressed frustration with the landlord’s decision, claiming that they had been “flushing money into the new crib” and working on new content concepts.[8] Those who support the group argue that the FaZe Clan should have been given a chance to repair the property, while others emphasize that the property owner had every right to remove the content creators.[9] Regardless, the eviction could be potentially fatal for the channel, as the FaZe Clan struggles to make content that is relatable to a new generation of subscribers.[10]
Content Creation
Although FaZe Clan describes itself as “the center of gaming, sports, culture, and entertainment,”[11] since the reboot, the company has decided to shift its focus away from gaming in search of more lucrative fields of content creation.[12] FaZe Clan recently entered into a partnership with Rollbit, a cryptocurrency casino that has collaborated with other large-scale brands such as the Italian football club SSC Napoli and English team Southampton.[13] The deal represented a concerted effort to strengthen audience connection and transform the brand’s perception.[14]
Incident
As the FaZe Clan attempted to reboot their channel amidst financial concerns and employment overhauls, the company launched their September “subathon,” which streamed live 24/7 for 30 days.[15] Throughout this event, the FaZe Clan members streamed themselves sleeping, eating, getting group haircuts, working out at the gym, and shooting baskets on their backyard court.[16] Much of their content was harmless fun until the group initiated a prank war that turned the content house into a warzone.[17] One of the members decided to pour flour over another’s streaming room, which led to retaliation and escalation.[18] The rooms were significantly soiled by a variety of substances, leaving them dire shape.[19] The prank war concluded with FaZe Kayasn throwing Plaqueboymax’s PC into the pool.[20] Shortly after, the FaZe clan page on X posted that Kaysan had been removed from the organization.[21] As a result of the damage caused to the property, the group was given a September first deadline to vacate the premises, despite having paid for the entire year-long lease upfront.[22] The Landlord explained that FaZe Clan had been given multiple warnings and was told that they were on their “last strike.”[23] In response, the group has scrapped all immediate plans; changing its banner and profile picture to a black blank to represent the severity of the situation.[24]
Landlord-Tenant Law (Dual-Purpose Residences With Personal and Professional Use)
The members of the FaZe Clan were renting a house in Los Angeles which they planned to use for content creation.[25] Under Federal Law, a Landlord can break a lease for unruly tenant behavior.[26] Depending on the violation’s severity, the Landlord can issue an unconditional quit, which requires the Tenant to vacate the premises without the option to cure the violation or pay rent.[27] The California Civil Procedure Code adopts a similar policy, defining several specific forms of unruly tenant behavior such as the commission of a nuisance upon the premises or use of the premises for unlawful purposes.[28] The Landlord will then provide three days’ notice to the Tenant before filing an eviction lawsuit, which could legally obligate the Tenant to pay the rent for the full lease.[29]
However, there are some legal obstacles posed by dual-purpose residences, blending personal and professional use.[30] California law treats residential and commercial leases very differently; with commercial tenants receiving less legal protections than residential tenants.[31] Commercial leases are more complicated than residential ones, and require a Landlord to specify all the reasons why they want to evict the Tenant from the office space or rental property.[32] It is insufficient for a Landlord in the commercial context to state general examples of a nuisance or unlawful activity, rather they must provide particularized facts showcasing damages to the property.[33] Regardless of whether FaZe Clan’s lease is viewed under a residential or commercial statutory scheme, the Landlord will likely be able to meet the burden of proof and successfully evict the group. [34]
Conclusion
The eviction has left FaZe Clan in a state of disarray, potentially threating the organization’s reboot approach.[35] FaZe Banks, the co-owner of FaZe Clan, accused content creators Kaysan and PlaqueBoy Max of destroying the home, leaving the entity with “nothing left.”[36] FaZe Banks tweeted that he was “seriously burnt” as he now attempts to revive the channel with no place to film and a limited budget to acquire a new property. [37]
It is unclear where the group will film in the future, but they must act fast if they want to maintain their following by authoring compelling content.[38]
[1] See Faze Clan Owners Prepare to Jump Ship, Esports Illustrated, (May 10, 2023), https://www.si.com/esports/news/faze-clan-owners-prepare-to-jump-ship
[2] See Kayla Cobb, ESPN’s ‘No Scope: The Story of Faze Clan’ First Trailer Dives Into the Esports Team’s PR Nighmare, The Wrap, (June 26, 2024), https://www.thewrap.com/espn-30-for-30-no-scope-the-story-of-faze-clan-trailer/
[3] See Faze Clan Owners Prepare to Jump Ship, Supra Note 1
[4] See Meera Jacks, Who’s in Faze Clan? Full roster following 2024 reboot, Dexerto, (July 31, 2024, 10:27 AM), https://www.dexerto.com/twitch/faze-clan-full-roster-2676401/
[5] See Olivia Richman, Banks Says Fze Clan Has Nothing Left After Getting Evicted From Content Creator House, Dexerto, (August 27, 2024), https://www.si.com/esports/news/faze-clan-evicted
[6] Id.
[7] Id.
[8] Id., at para. 7.
[9] Id.
[10] Id.
[11] See Grant Taylor-Hill, Faze Clan Moving Away From Gaming Content, It’s Claimed, ESports.net, (March 9, 2024), https://www.esports.net/news/industry/faze-clan-moving-away-from-gaming/
[12] Id.
[13] See Tom Daniels, Faze Clan announces multi-year Rollbit deal, GSI Esports Insider, (August 29, 2024), https://esportsinsider.com/2024/08/faze-clan-new-multi-year-rollbit-deal
[14] See GameSquare Holdings, Inc., Faze Clan, a GameSquare Company, Announces Huge Community Engagment from September’s FaZE Subathon, (October 9, 2024), https://finance.yahoo.com/news/faze-clan-gamesquare-company-announces-120000294.html
[15] See David Matthews, Faze Clan Twitch-streaming house in Sherman Oaks swatted with False murder report, The Orange County Register, (September 20, 2024), https://www.ocregister.com/2024/09/20/faze-clan-esports-team-swatted-during-stream-after-false-murder-report/
[16] Id.
[17] See Shreyan Mukherjee, Faze Clan prank war: What exactly happened that led to their reported eviction from the Faze House, Sportskeeda, (August 27, 2024), https://www.sportskeeda.com/us/streamers/faze-clan-prank-war-what-exactly-happened-led-reported-eviction-faze-house
[18] Id.
[19] Id.
[20] See Richik ”anarkiddie” Bhattacharya, FaZe Banks says he is kicking Kaysan out of FaZe Clan after he threw Plaqueboymax’s PC in pool, Sportskeeda, (August 15, 2024), https://www.sportskeeda.com/us/streamers/news-faze-banks-says-says-kicking-kaysan-faze-clan-threw-plaqueboymax-s-pc-in-pool
[21] Id.
[22] Mukherjee, Supra note 17.
[23] Id.
[24] Id.
[25] See Olivia Richman, Supra Note 5
[26] See Can a Landlord Terminate a Lease Early?, American Apartment Owners Association, https://www.american-apartment-owners-association.org/property-management/can-a-landlord-break-a-lease/
[27] Id.
[28] “Unlawful Detainer” Defined, Cal. Civ. Proc. Code § 1161 (West)
[29] Id.
[30] See Ezer Williamson, Residential v. Commercial Leases, Ezer Williamson Law, https://ezerwilliamsonlaw.com/residential-vs-commercial-leases/
[31] Id.
[32] See David Bitton, California Commerical Lease Agreement for Rental Properties, DoorLoop, (August 10, 2024), https://www.doorloop.com/forms/california-commercial-lease-agreement
[33] Id.
[34] See Shreyan Mukherjee, Supra Note 17
[35] See Olivia Richman, Supra Note 5
[36] Id.
[37] Id.
[38] See Shreyan Mukherjee, Supra Note 17
