Fortnite pro and Twitch streamer Turner “Tfue” Tenney is suing FaZe Clan over a contract that he and his lawyers say is illegal. Tfue is seeking compensation for what his attorneys call a “grossly oppressive, onerous, and one-sided” agreement Tfue signed with FaZe.
The 23-page long document shows in detail Tfue’s specific claims. Here’s a breakdown of the most important points of the lawsuit.
What are Tfue’s claims?
Tfue and his attorneys claim that FaZe takes up to 80 percent of the revenue paid by third-parties for his services, which they later specify as sponsorship deals brought by the organization to the player.
Tfue is reportedly limited to accepting only sponsorship deals provided by FaZe clan, excluding those sourced by himself or his agent. That means he’d be restricted to showing only brands approved by FaZe on his personal Twitch and YouTube channels. As a consequence of this language, Tfue allegedly missed out on an individual sponsorship deal with HyperX. FaZe rejected the deal, saying it was in direct conflict of interest with another of the team’s sponsors.
Since FaZe was bringing sponsorship and business deals to Tfue, the player claims the organization was acting as his agent without having permission to do so. Even if it had, they claim this agreement goes against Tfue’s best interests, which is also a violation of law.
In addition, Tfue claims FaZe has received money from sponsorship deals Tfue participated in but never paid him for them. There’s no mention of a specific example in the lawsuit, however.
What are the laws Tfue is citing in the lawsuit?
Tfue’s lawsuit mentions two key California laws. The first says that “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind” is void, which is the California Business and Professions Code § 16600. Tfue’s attorneys say this applies to his case since FaZe has allegedly undermined potential individual sponsorship deals.
The second, California’s Talent Agency Act, ensures agents have permission to work and that they act toward their client’s best interests. Tfue claims FaZe is acting like his agent illegally and that it is limiting his deals, acting against his best interests.
What does Tfue want?
Tfue wants compensation for all his claims. First, he wants his agreement with FaZe to be terminated by the court with no further obligations toward the company. That means Tfue would no longer be part of FaZe Clan and would be free from any sections of the contract, including sponsorship deals. He would be free to sign a new contract with other organizations.
He also claims FaZe owes him the money he hasn’t received for the brand promotions he made as part of the contract. This includes his alleged 20 percent share, a compensation for what would’ve been a “fair and reasonable value” he could’ve earned for these sponsorships, and FaZe Clan’s share of these deals.
What does Tfue contract say?
The lawsuit provides part of Tfue’s contract with FaZe Clan, specifically the section about exclusivity and sponsorships.
During an unspecified “Exclusivity Period,” FaZe would have full control over the sponsorship deals Tfue participated in, and the company would be free to approve or reject any individual deal Tfue received. He would be forbidden to promote brands that were not approved by FaZe, even if these were part of a separate deal for his YouTube or Twitch channels.
Another segment says FaZe would have the right to match any offer made to Tfue by another team. If FaZe chose to match the offer, the organization would have exclusive rights to Tfue’s services under the same conditions of the contract he would sign with the new team. Tfue wouldn’t have the option to give up on his contract with FaZe unless the team refused to match the offer.
What isn’t part of the lawsuit
FaZe’s owner Richard “Banks” Bengtson, has argued that the team hasn’t taken any of Tfue’s prize money or revenue from his Twitch and YouTube subscribers. But no part of the lawsuit claims FaZe did this anyway.
The only part in which Twitch and YouTube are mentioned in the lawsuit is to mention Tfue’s participation in video sponsorship deals in these channels. There’s no mention to any other source of revenue.
Tfue’s lawsuit focuses instead on how FaZe Clan is allegedly undermining his opportunities to negotiate with brands independently and earning more money through sponsorship deals he wants to make.
