Turner ‘Tfue’ Tenney’s lawsuit against the FaZe Clan organization made headlines this week, leaving people questioning how a scandal this big will affect the industry.
Fortnite Battle Royale pro player Tfue filed the Complaint against FaZe Clan on May 20, stating that he was under an ‘oppressive’ contract that allowed the organization to take 80% of his earnings made from branded content posted to social media.
There were also allegations of underage drinking and that pressure was put on an 11-year-old to lie about his age so that he could play.
Lawsuits of this size aren’t a common feat in this industry so it’s unsurprising that the biggest question on people’s lips is ‘how will all of this end?’
Roger Quiles, an attorney specializing in esports, tells us how the vast majority of lawsuits like this never make it to the courtroom because it’s easier to resolve cases outside of court so a settlement between Tfue and FaZe could happen “though it is still far too early to tell.”
If they did reach a settlement agreement, it would put the situation to bed right there and then, which is the simplest outcome.
FaZe Clan’s response to today’s press article regarding Tfue: pic.twitter.com/eVdRVMnRpl— FaZe Clan (@FaZeClan) May 20, 2019
But then there are the allegations of underage drinking and pressuring an 11-year-old to lie about his age, both being violations of the Talent Agency Act.
Claims like that carry hefty weight and if found to be true, could have devastating consequences for FaZe Clan.
“The reference to underage drinking and other dangerous/illegal acts being encouraged is another way of attacking FaZe’s contract on the Talent Agency Act grounds,” Quiles explains. “Several statues in the Act reference specific kinds of activities that Agents cannot engage in.”
This doesn’t exactly look good for FaZe Clan and only serves to back up Tfue’s claim.
“Generally, it’s not the best of ideas for an owner to discuss elements of ongoing litigation, especially on social media,” Quiles states. “These statements can certainly be used against you in court if the opportunity arises. If, and how, they’re used, will determine the impact of Banks’ statement.”
It is impossible to say what would happen to FaZe Clan if Tfue won the lawsuit, whether they could simply afford to compensate him and move on, or whether it would harm their reputation beyond repair is unknown.
When questioned on FaZe’s future, Quiles simply said that it’s unrealistic to expect to know that now and that “we’ll need to see how things continue to play out first until the fate of FaZe is determined.”