Major Blow to FaZe Clan as Snoop Dogg Resigns due to $7M Plummet in Stake

Snoop Dogg WWD.com
Snoop Dogg WWD.com
HipHopX/News/WWD

Snoop Dogg has reportedly ended his affiliation with FaZe Clan, an eSports organization, following a $7 million drop in his investment.

According to a regulatory filing submitted by FaZe Holdings to the Securities & Exchange Commission, the Long Beach rapper has reportedly stepped down from his position on FaZe’s board of directors on March 29. Sportico, a renowned sports news outlet, broke the news about the rapper’s quiet resignation

Snoop Dogg’s sudden resignation from the board, as revealed in a recent filing, has sparked curiosity among fans and investors. The filing explicitly states that the renowned rapper provided no details regarding the reason for his departure, except that it was not due to any disagreement with the company or its subsidiaries.

Snoop Dogg’s affiliation with FaZe Clan was made public during his 2022 Super Bowl Halftime Show appearance, as he proudly sported a gleaming FaZe Clan gold chain.

In March 2022, the legendary Tha Doggfather joined the FaZe board, and a social media announcement revealed his new moniker as “FaZe Snoop.”

“It only makes sense to partner with FaZe Clan as both a team member and on the Board of Directors,” the rap legend said at the time. “The youth identifies with their brand and that’s something my son Cordell knew, which is why he brought us together.”

Snoop Dogg receives restricted-share awards worth $3.9 million in FaZe stock, with about 320,000 shares granted at the time.

According to reports, the stock of the company surged to $7.4 million in the summer, but it encountered management and revenue issues that resulted in several executives stepping down, and ultimately, failing to achieve the projections promised to investors.

FaZe told Wall Street it would generate $91 million in sales for 2022 with a trajectory to hundreds of millions of dollars in annual sales through its half-a-billion social media followers. But in its full-year earnings announcement last week, FaZe reported just $70 million in revenue.

The company is now at risk of being thrown off the Nasdaq, closing last at week at 50 cents a share, which is a 97.9% decrease in value from its peak.

Snoop Dogg received shares that virtually all vest over a 23-month period between July last year and June 2024.

He is estimated to depart with about 106,000 FaZe shares, and his total compensation for his seven months on the board of directors and more than a year as a FaZe Clan member is expected to be $53,184.