Tech News: Tfue Sues FaZe Clan Over “Oppressive” Contract – Hollywood Reporter

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Tech News: Tfue Sues FaZe Clan Over “Oppressive” Contract – Hollywood Reporter

May 20, 2019 9:21am PT by Ashley Cullins Getty Images Turner Tenney, known as Tfue. One of the world's top professional esports players is suing his g

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Tech News:


9:21am PT
by

Ashley Cullins

Getty Images

Turner Tenney, known as Tfue.

One of the world’s top professional esports players is suing his gaming organization for allegedly restraining his business opportunities — and taking up to 80 percent of his earnings — in a complaint that argues esports players’ representatives should be regulated like agents of film and TV stars.

Turner Tenney, a 21-year-old professional gamer known as Tfue, on Monday sued FaZe Clan for allegedly limiting his ability to pursue his profession in violation of California law, passing on a lucrative brand deal because of a conflict of interest and failing to pay him his share of sponsorship earnings.

“In no uncertain terms, these gamers are artists, entertainers and content creators — they perform, they act, they direct, they edit and they stream,” writes attorney Bryan Freedman of Freedman + Taitelman in the complaint. Unlike traditional entertainment, esports is a new industry, and Freedman argues there is “little to no regulation or oversight,” and no unions or guilds to protect the players who are often young and trusting.

There’s a lot of money up for grabs. Top esports player Tyler Blevins, known as Ninja, in December told CNN he brought in $10 million last year playing Fortnite. He boasts more than 20 million subscribers on YouTube and has racked up more than 450 million views on Twitch. His sponsors include Samsung, Uber Eats and Red Bull.

Tenney says he’s missing out on those opportunities because of FaZe Clan’s unlawful activity in connection with a deal he signed in April 2018 — and he only gets to keep 20 percent of the revenue from any branded videos that are published on Twitch, YouTube or social media and half of his revenue from touring and appearances. His Twitch streams have been viewed more than 120 million times, and he has more than 10 million YouTube subscribers and 5.5 million Instagram followers.

“That Gamer Agreement is grossly oppressive, onerous, and one-sided,” writes Freedman. “Faze Clan uses its illegal Gamer Contracts to limit Tenney to deals sourced exclusively by Faze Clan and to prevent Tenney from exploring deals presented by others; deals that are potentially superior to deals procured by Faze Clan; and deals that are not saddled with an eighty percent (80%) finder’s fee.”

Tenney attempted to terminate the agreement in September claiming FaZe Clan breached their deal. According to the complaint, the group rejected Tenney’s termination and contends he’s still bound by their contract. Tenney is asking the court for a declaration that the gamer agreement is terminated, and is seeking fair payment for his services plus disgorgement of Faze Clan’s profits and punitive damages.

Meanwhile, Freedman argues Tenney’s contract isn’t just anticompetitive — but the company also runs afoul of the Talent Agency Act through its practice of procuring engagements and employment for gamers. The state law requires that any person or company “who engages in the occupation of procuring, offering, promising, or attempting to procure employment or engagements for an artist” must be licensed by the labor commissioner and conform to professional regulations. Its definition of “artist” includes a catchall of “persons rendering professional services in motion picture, theatrical, radio, television and other entertainment enterprises.” 

On March 15, Freedman took Tfue’s TAA violation claim to the California Labor Commissioner — and Tenney claims FaZe Clan’s contracts may be the least of its problems.

“Not only does Faze Clan take advantage of these young artists, it jeopardizes their health, safety and welfare,” writes Freedman in the petition to determine controversy. Tenney says FaZe Clan pressured him to live in one of its homes in the Hollywood Hills with other young YouTubers, where he says he was given alcohol before turning 21 and encouraged to illegally gamble. 

“Faze Clan also continuously pressured and encouraged Tenney and others to undertake dangerous stunts while performing in videos,” writes Freedman. “During one video, Tenney suffered an injury to his arm while skateboarding which resulted in permanent disfigurement.”

Tenney’s petition to the labor commissioner also claims FaZe Clan signed an 11-year-old gamer and pressured the minor and his family to lie about his age. He’s asking for a determination that FaZe Clan has violated the TAA, that his gamer agreement is unenforceable and that the company must repay him all revenue it has collected as a result of its work for him.

“Tfue and my law firm are sending a message,” Freedman said in a statement to The Hollywood Reporter. “The time is now for content creators, gamers and streamers to stop being taken advantage of through oppressive, unfair and illegal agreements. The significant legal actions taken today will be a wake up call that this behavior will no longer be tolerated. The gaming community deserves a safe environment that allows gamers the freedom to control their own careers.”

FaZe Clan did not immediately respond to a request for comment. Read the complaint and petition below.

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