hen Snoop Dogg stalked the stage at the 2022 Super Bowl halftime show wearing a FaZe Clan-branded gold chain, it marked an important moment for the esports organization turned lifestyle brand that fancies itself the paragon of youth culture: FaZe Clan had arrived.
Then a September 26 regulatory filing revealed that approximately $71.4 million of a $100 million PIPE investment being used to fund operations had defaulted and would need to be covered by B. Riley. News also broke that 92% of SPAC shareholders had chosen to redeem their shares for cash during the merger rather than convert them to the new FaZe common stock, draining almost $159 million from the company’s trust account.
“These conditions have raised substantial doubt about our ability to continue as a going concern,” the company says in its, “which is dependent upon our ability to generate significant revenue and our ability to raise additional funds by way of our debt and equity financing efforts.” A more accurate estimate of FaZe’s fan base might be its aggregate YouTube subscribers, which as of September 30 totaled just under 136 million, although this metric would also double-count any individual who subscribed to multiple FaZe-affiliated channels.