In what was Esports first major employment lawsuit, Turner “Tfue” Tenney and North American organisation FaZe Clan have finally settled their legal battle. As one of the leading Fortnite streamers, Tfue had been in a contract dispute with FaZe Clan for over a year, citing a lack of payments and sponsorship opportunities.
The case between the two parties started when when Tfue accused his team of exploiting him with an unfair contract that violated state law. The former Rogue player claimed that FaZe Clan were taking home 80% of revenue made from third parties, while the team were also allegedly stopping him from signing potentially lucrative sponsorship deals.
How the Case Between Tfue & FaZe Clan Played Out
In what was regarded by many as the first case to bring into question the association between gamers and management, along with contracts and the illegal actions of representatives. However, FaZe Clan responded with lawsuit of their own, suggesting that Tfue had stolen confidential information and violated the terms of his contract.
Believing that Tfue had earned some $20 million since arriving at the team in April 2018, partly thanks to the organisations unique content creation methods, FaZe claimed that they had only taken around $60,000 from such deals. While a settlement between the duo was muted, the case eventually became a legal matter, which has now been resolved.
Why the Two Parties Came to a Settlement
A judge in California dismissed Tfue’s claims, with a trial in October set to determine the remaining suit surrounding FaZe’s accusations. Tfue is now no longer associated with the organisation, with a statement revealing the following:
“Faze and Turner Tenney are pleased to announce they have resolved their disputes and settled their litigations. The parties wish one another the best of luck in future endeavours.” No details regarding the settlement amount were disclosed, with neither party having had anything else to say on the matter to date.
ESG Law, the first firm dedicated to Esports, worked on the case, who also work with the likes of Cloud9, Team SoloMid and 100 Thieves. One of the most interesting takeaways from the case is the way in which contracts vary between teams, players and streamers, with bespoke terms now being created in order to ensure that such disputes do not materialise.