Major Esports Acquisition Unveiled: FaZe to Join GameSquare
In a significant development within the esports industry, FaZe Clan, the esports organization and its parent company, FaZe Clan Inc., have announced their acquisition by GameSquare. This acquisition is expected to bolster the financial stability of FaZe Clan. Which faced economic challenges after a tumultuous public listing. GameSquare is a Texas-based esports holding company with backing from the NFL's Dallas Cowboys. Their aim is to finalize the acquisition by year-end, marking a new chapter for both organizations.
Leadership Reshuffle: FaZe Clan Founders Back in Charge
As part of this acquisition, the founders of FaZe Clan, Richard "Banks" Bengtson, Thomas "Temperr" Oliveira, and Yousef "Apex" Abdelfattah, will be reinstated in leadership roles within the brand. This transition signals a return to the organization's roots. And may usher in a fresh era for FaZe Clan under their guidance.
Shared Ownership Raises Conflict of Interest Concerns
One of the notable outcomes of this acquisition is FaZe Clan's shared ownership with another esports team within GameSquare's portfolio—Complexity. This partnership presents exciting possibilities. But also gives rise to potential conflict of interest issues. Especially in the competitive world of Counter-Strike.
Both FaZe Clan and Complexity are active contenders in Counter-Strike tournaments, and they frequently find themselves competing against each other in prestigious events. Furthermore, they share partnerships with ESL and BLAST, two of the most prominent tournament organizers in the world of Counter-Strike. The question of potential conflicts of interest arises due to these connections.
ESL's Stance: Multiple Teams and Conflict of Interest
ESL, the organization behind major Counter-Strike tournaments, has a specific rule, Section 2.11.3.1, which prohibits one organization from fielding multiple teams in the same competition. However, it remains uncertain whether this regulation extends to separate entities with shared ownership. As a result, the relationship between FaZe Clan and Complexity could pose challenges in adhering to this rule.
Image Source: ESL Pro Tour CS General Rules GuidebookValve's Rigorous Criteria for Counter-Strike Majors
Valve, the developer of Counter-Strike, upholds stringent criteria for its Major tournaments, including strict regulations on conflicts of interest. According to the official Counter-Strike Major rulebook, teams and players participating in these tournaments must not have any financial interest in the success of a team they are competing against. This includes any form of business entanglement, such as shared management, shared ownership of entities, licensing agreements, and loans.
The acquisition of FaZe Clan by GameSquare opens the door to exciting opportunities, but it also presents a range of complex challenges related to conflicts of interest in the world of esports. As the esports industry continues to evolve, how these issues are addressed will be closely watched by fans, players, and industry stakeholders alike.
Read the full statement by GameSquare HERE.
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Featured Image Source: GameSquare / FaZe Clan