FaZe Clan

Founded in 2010, FaZe Clan quickly rose to popularity through videos of trick-shots in Call of Duty. It is now the most famous esports team in the world. 

However, as of 2021, defining FaZe Clan as an esports team is limitative. In the ten years since its birth, it evolved into a talent, media, and cross-entertainment fandom monetisation business, mainly through sponsorships, brand and celebrity deals, and content production. It became a multi-million-dollar e-commerce business selling merchandise, but also a talent management firm for highly skilled esports players (generating revenues with percentage earnings from contracted players). On YouTube, FaZe boasts 8.7 million subscribers as of April 2022 and an avid fan base that spans across titles such as Fortnite, FIFA, Valorant, and more. FaZe Clan fans also have a high spending penetration across digital entertainment. They are three times as likely to place bets on sports, but also more than twice as likely to spend money on in-game items (e.g., loot boxes, skins, in-game currency) than the consumer average.

Brand partnerships and collaborations with celebrities from the music, sports, and fashion industry helped the clan gain relevance in the rapidly evolving entertainment industry. Since 2018, FaZe Clan has signed exclusive partnerships with brands including Kappa, Champion, Manchester City, Nissan, DC Comics, and more. 

The cross-entertainment connection with established brands was of fundamental importance to extend FaZe’s reach beyond the gaming realm. FaZe Clan received investments from NBA players such as Ben Simmons and Jamal Murray, artists Pitbull and Swae Lee, and entrepreneur Jimmy lovine. Snoop Dogg, who’s ‘skin’ recently became available on Call of Duty also joined the board of directors in March 2022. 

FaZe Clan now intends to publicly list on the stock market through a special purpose acquisition company (SPAC) deal with a valuation of $1 billion as of 2021. Within entertainment they will also be releasing two separate TV shows, both scripted and unscripted. 

Overall, the success of FaZe Clan relates to engaging with audiences beyond just gaming. It is not just about esports, but rather about the lifestyle and culture surrounding it. FaZe generates hype, cultural relevance, and captivates digital natives. Understanding of consumers across their entertainment lives (including music, fashion, video, sports, and social behaviours) plays a crucial role for in maintaining and fostering its relevance going forward. 

For esports to get closer to the mainstream, organisations can learn from FaZe’s successful cross-entertainment path towards growth.

Roles

This report is relevant to the following roles:

Audience Insight