The details of popular Fortnite gamer Tfue’s contract with FaZe clan have been revealed, and some parts seem exploitative and oppressive. Banks, the owners of FaZe clan, had earlier been defending the terms of the contract, but now admit that the contract is “trash.”
The agreement was leaked by a non-FaZe source to The Blast and it shows a breakdown of how monies are split. While Tfue initially stated that FaZe was entitled to 80% of profits earned from his endorsements, Banks hit back by stating that they have only collected $60,000 of $300,000 from deals with third-party vendors.
As the devil is in the details, here are some of the most important points from the leaked agreement.
Compensation:
Tfue is locked into a contract for a total of 36 months, and paid $2,000 per month as a fixed salary along with “All other income (including, but not limited to, salaries, earnings, fees, royalties, bonuses, share of profits, and gifts, etc.) generated in connection with Gamer’s Services (whether individually or as part of the Team).”
The issue arises in how other money is split up based on its source of origin.
A major point of contention for Tfue is that “In-game/sticker (creator code income) 50% to Gamer and 50% to Company”, which gives FaZe clan half of his creator code income. This can be a significant amount of money, and estimates from The Blast’s sources peg this amount to be around $10 million per year for Tfue.
Creator codes in general are used by fans of Fortnite players when making purchases. They are meant to support the player, and as his popularity increases, so too does the potential for profit from this source. It is no wonder there would be issue with FaZe taking so much of it.
In addition, another part of the agreement states that merchandising and endorsements brought by FaZe will grant them 80% of the money and 20% for Tfue. Even if the endorsements are sought out by Tfue on his own, the split would be 50-50, both of which seem excessively high for FaZe.
Non-Compete Clause:
Another unreasonable point that has no business being in any professional gamer’s contracts is one that limits his professional play and ability to earn. In the event that the agreement is terminated under certain provisions, Tfue would be forced not to play professionally for 6 months.
Non-compete clauses are often highly scrutinized with regards to their overall purpose and geographical location. While they may exist in many contracts, they are often not enforceable because of the practicality and oppressive nature of a situation.
For Tfue, not playing competitively for a period of six months could be a death-sentence for his career, both because the nature of streaming and gaming relies on a mix of skill and popularity, and because of the potential loss of income from winning tournaments and attaining new endorsements that come from being a professional player.
Now it seems that FaZe wants to discuss the issues to come to a resolution. Hopefully Tfue does so with a lawyer by his side to ensure that his best interests are represented. The future of esports lies in the talent and skill of players, not in the exploitative nature of business managers.