ESL to review FaZe acquisition by Complexity's owner

In recent esports news, ESL (Electronic Sports League) has initiated a review of the planned acquisition of FaZe Clan by GameSquare, the parent company of Complexity. This move raised significant questions regarding conflicts of interest, especially given that both FaZe and Complexity are actively involved in ESL Counter-Strike tournaments and other prominent esports events. This article will talk about the implications of this acquisition, the concerns raised by shared ownership, and its potential impact on their participation in competitive gaming.

FaZe Clan's in-server success wasn't enough to keep the organization running as expected. ESL now needs to address the acquisition to avoid future problems (credits: ESL)

ESL's examination

ESL, a major player in the esports industry, is carefully examining the consequences of FaZe Clan's acquisition by GameSquare. Both FaZe and Complexity are well-established esports organizations, frequently competing in high-profile tournaments and leagues, often organized by ESL. This situation has led ESL to question how this merger may affect their business relations and the tournaments in which FaZe and Complexity participate. In an official statement ESL said

"We are aware of the acquisition of FaZe Clan by GameSquare and are examining the potential implications this may have on (their participation in) our tournaments and our business relations. If the outcomes of this review lead to any updates, then we will announce those in due course."

This review is crucial as it has the potential to impact not only ESL tournaments but also other major esports events in which both organizations are involved.

The 'Louvre Agreement'

One of the key aspects that complicate this acquisition is the 'Louvre Agreement.' This agreement provides its partners, including FaZe and Complexity, with permanent slots in ESL Pro League and other top ESL competitions, as well as a share of the tournaments' revenue. This arrangement makes it challenging for ESL to navigate this acquisition, as both teams have an established presence in these leagues. As stated in the document, Section 1.3:

Partner Teams have a permanent slot in Pro League every season. The permanent slot shall be subject to review if Partner Team places last in their group in 3 out of 4 seasons.

Valve's stance on shared ownership

Beyond ESL competitions, Valve's stance on shared ownership and conflicts of interest is likely to present obstacles for FaZe and Complexity. The game developer has made it clear that shared ownership of teams competing in its events is problematic and goes against their objectives. This will likely result in the two teams being unable to enter Valve-sponsored competitions together. Valve has also announced a rule against such ties at "all ranked events" starting from 2025, as part of their effort to maintain an open ecosystem and discourage franchise formats.

Tournament and qualification implications

The acquisition's implications extend beyond ESL tournaments. Both FaZe and Complexity have partnerships with BLAST and are in the process of qualifying for the PGL CS2 Major, scheduled for the first quarter of 2024.

PGL will host the first two CS2 Major tournaments: Copnhagen and Shangai (credits: PGL)

Roster rumors

Additionally, the FaZe acquisition has sparked speculation about the future of their CS:GO roster. Some believe that FaZe's CS roster can go to other organizations, essentially dismantling the current lineup. While FaZe has seen success in Counter-Strike, there has always been a sense that their CS division operates differently within the organization. Speculations include Twistzz potentially returning to Team Liquid. The future of karrigan, ropz, broky, and rain, however, remains uncertain, and FaZe is likely to clarify their plans in the coming months.

Conclusion

In summary, the FaZe Clan's acquisition by GameSquare, which also owns Complexity, has raised several concerns and questions within the esports community. ESL's ongoing review, Valve's strict stance on shared ownership, and the potential impact on tournaments and qualification processes all undoubtedly cast a cloud of uncertainty over the future of these two powerhouse esports organizations. As the acquisition finalizes and the reviews progress, the esports community awaits further announcements that will shape the path forward for FaZe and Complexity in the world of competitive gaming.

Featured image credits: ESL

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