Amidst FaZe Clan’s financial struggles, Snoop Dogg has stepped down from the esports organization’s board of directors.
FaZe Clan has been in the headlines after the organization announced that it might go private due to failing to meet the minimum needs required to stay on the Nasdaq exchange. On top of that, the organization only has enough money to keep the company running until late 2023.
Now, the 2022 Q4 financial results have also revealed that Snoop Dogg is jumping ship.
FaZe Clan recorded a total of $70 million in revenue in its 2022 Q4 financial results — but this left the company with a $53.2 million net loss. The company claimed this was partially from increased “compensation and benefits due to increased headcount, stock compensation expense, and professional services fees as a result of the growth of the business and of becoming a public company.”
This explains the mass layoffs in February of 2023.
Why did Snoop Dogg leave FaZe Clan?
Despite this news, FaZe Clan’s CEO Lee Trink told shareholders: “We are optimistic as ever about the future of FaZe Clan. We believe we have a gifted roster of esports athletes and content creators, a talented and dedicated team committed to our mission, and a loyal fan base that continues to grow and engage with our brand.”
But Snoop Dogg wasn’t having it. Calvin Broadus, Jr. announced that he has officially resigned from the board of directors. The decision was “effective immediately,” with the D-O-Double-G stepping down on March 29, 2023.
Snoop Dogg’s decision to leave FaZe Clan was not due to any “disagreement with the company,” according to the report. It was not actually stated what caused the rapper to leave the esports organization, but the drama surrounding its content creators and the ongoing financial concerns most likely played a part.
Snoop Dogg was given almost $2 million in company stock when he was initially brought on board. This stock would not have vested until 2024, but it wouldn’t be even close to its original valuation anyway. The stock has only continued to plummet, hitting a new low of under 40 cents in recent weeks. This is well under the minimum $1 it needs to maintain to be on the Nasdaq exchange.