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We have the Contract! Tfue V.S Faze Clan #ReleaseTheContract

Overview

On May 20th 2019 the entire Fortnite community was shocked to learn that Faze Clan member and Fortnite Pro Tuner “ Tfue” Tenney was suing Faze Clan over contractual obligation that were unfair and represented a large financial risk in the future. Soon after the allegations were made Faze Clan member and Co-founder Faze Banks made video detailing his side of the situation and expressing concern for his friendship with Tfue. Between May 20th and May 22nd many videos speculating what the contract entailed began to circulate the internet. During this time it was learned that Faze Clan had only collected approximately $60,000 in earnings from Tfue and that several attempts had been made to nullify the situation and new contracts were apparently in the works.  

May 22nd, 2019

Tfue released a statement on Youtube apologizing for negative connotations regarding drinking and dangerous stunts performed at Faze. However, he continued to describe the unfair percentages and regulations regarding his contract. Tfue was very reserved and only shared information that would otherwise not interfere with his contractual obligations until nullified. Upon ending his video he stated that Faze should release the contract and started the twitter hashtag #relaeasethecontract.

The Response

Later on May 22nd Faze Banks released a series of tweets regarding Tfue’s Contract. He stated once again that he was hurt and couldn’t believe this was happening. After ranting he said he would release the contract and set everything straight. After hours of waiting it seemed like Banks wasn’t going release the contract.

May 23rd, 2019

Early on may 23rd news broke that the contract had leaked by TheBlast.com a twitter confirmed news organization. Almost immediately Keemstar of Dramaalert reported the authenticity of the contract. Following the report many popular streamers from Ninja to The Fortnite guy reported their thoughts on youtube and Twitch. Every streamer still questioned the authenticity until it was later confirmed by both Faze clan and Tfue.

The Details

According to Tfue’s contract Faze was entitled to large sums of money from multiple different income streams much like Tfue had stated. The contract states that Tfue will be automatically signed to a 3 year contract after his initial 6 month trial at Faze. The contract also states that Tfue will be paid $2000 per month on top of all other income avenues. Despite the contract being incredibly long the details which describe the splits between other income streams are what really shows the atrocity that is Tfue’s contract. Below are the Tfue / Faze Clan splits sourced directly from Theblast.com

As you can see the splits between Tfue and Faze are at best even. However when you consider who is technically doing the work and generating the earnings things become a lot more apparent as to why Tfue has made this decision.

The Breakdown

Brand deals brought by Faze only pay Tfue 20% despite all the advertising revenue
Tfue generates for each brand. This also includes Tfues support a creator feature through Epic Games. Therefore every purchase made by individuals using Tfues name will only pay Tfue 20% after Epic’s Cut and Faze Clans cut. The last known estimate for Tfue’s Support a creator code was around 10 million dollars a year. Therefore Tfue would only receive approximately 2 million out of 10 million dollars.

In game sticker / merchandise splits entitle tfue to an even 50/50 split. If this applies only to Faze Clan merchandise and in game stickers and gif’s created specifically by Faze for Faze members then this section of the contract is the most fair while still being in favor for Faze.

Brand deals brought in by Tfue entitle him to a 50/50 split as well. However if we simply look at Brand deals brought by Faze we can see that Faze receives 80% and Tfue 20% . Clearly Faze believes they deserve more money even though they did none of the work. An example of this would be Tfue getting a sponsorship through Nike. The sponsorship might pay 2 million dollars over a period of time, however according to the contract Tfue would still have to pay 1 million to Faze regardless. This type of split is clearly unfair and ultimately ruins the ability for Tfue to earn legitimate sponsorships without being robbed.

Appearance Fees again only give Tfue an even 50/50 split of profits. Again this is another blatant attempt to rob Tfue or any contracted player of the money they generate. Though Faze should earn some money from Appearance by players they should not be gouging them for 50%. Mind you the players/ Tfue are who people want to see, NOT FAZE. They are just an organization that adds validity to a players status. That value is not worth almost 50% or more of all of Tfue’s earnings.

Tournament Winnings allow Tfue to have the largest share of the split available on the contract. What must be noted, is 80% is exceptionally low for pro players, as most signing pro’s wont take anything less than 90 or 95% of tournament winnings. Faze clan has stated they have taken no money in winnings from Tfue but according to the contract that doesn’t mean they can’t.

The Results

According to Tfues lawyer this is one of the worst contracts he has ever witnessed in his entire career. Mind you, Tfue’s lawyer has practiced law for over 20 years and is considered a super lawyer ( top 5%) in southern California.  Whether or not Faze clan rectifies the situation is yet to be seen, but things are not looking good. Chances are high within the next couple weeks we will have a resolve between Tfue and Faze clan, however Faze may not be around for much longer. There are many discussions online detailing how Faze could very well face an uphill legal battle but might have also broken the law multiple times. Only time will give us the truth.

Thank you for keeping up with all our Fortnite content here on Pseudo Pharm! We love to see all the great feedback. Don’t forget to keep up with us on all our other platforms such as YoutubeThe Weedtube, Itunes, and Instagram. Thank you for reading.




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