The dispute between Faze Clan and Tfue could reshape e-sports and YouTube contracts forever

A new lawsuit filed against Faze Clan, a popular electronic sports organization and YouTube network, by one of the most popular internet personalities announces as a pivotal moment for creators of online content.

Turner "Tfue" Tenney is one of the most famous Twitch streamers in the world, having catapulted himself into the higher echelons of online creators through his Fortnite constant performance in the competitive circuit of the game. But a new lawsuit filed by Tenney's lawyers says today that his employer, Faze Clan, has benefited financially through a contract of exploitation and behavior unlawful on the part of the management of Faze.

The lawsuit indicates that Faze denied Tenney some business opportunities, did not pay Fortnite player his share of the revenue from the brand transaction, and significantly compromises his income by taking up to 80% of his income in certain situations. The lawsuit also alleges that Faze is acting in violation of California law, in particular the Talent Agency Act, by operating essentially as an artistic agency without proper license or by complying with the necessary regulations. The complaint also alleges that Faze members encouraged Tenney to play and drink minors.

"Because the sports industry is so new, there is virtually no regulation or oversight," writes lawyer Bryan Freedman in the lawsuit. "There are no real organizations such as union guilds to help protect the creators / content streamers that run the sector. simultaneously. Creators like Tenney sign contracts with these organizations to improve their careers, but it's often in return for a reduction in revenue for all these platforms and channels.

Tenney first signed the contract, named in the court document by the term "player agreement", in April 2018, at the age of 20. The contract specifically states that Faze earns 80% of all Tenney revenues through Twitch-sponsored video and YouTube, which has more than 10 million subscribers, according to Tenney's lawyer.

It's a number that has shocked other creators in the gaming world, including Tyler "Ninja" Blevins, who said such terms would be "a joke". . "Ali" Myth "Kabbani expressed sympathy for Tenney, tweeting: "I really feel so bad for [Tenney]. "Freedman calls the fracture" grossly oppressive, expensive and unilateral "in the complaint.

Faze calls these numbers and claims that their statements are inaccurate. A statement from the company sent to The edge states that since Tenney signed the contract in April 2018, the organization has not collected any money based on Twitch, YouTube or social media revenue. Faze's statement also claims she has not collected any cent in tournament winnings since Tenney started competing for the eSports organization. Tenney is the second highest gain Fortnite player in the history of the game, having won a series of major competitions that brought him over $ 500,000.

"We have only collected a total of $ 60,000 from our partnership, while Tfue has earned millions as a member of the FaZe clan," the statement said. "Although the contracts are different from one player to another, all players – including those from Tfue – have a 20% maximum on FaZe Clan for tournament winnings and content revenue, with 80% for the player. In the case of Turner, none of these were collected by the FaZe clan. "

Tenney's case is based on a number of factors that have become standard practices in the largely unregulated creative space, which extends mobile applications like Instagram to video platforms like Twitch and YouTube. The creators are often young and inexperienced and in many cases do not fully understand the legal jargon behind a contract that could dictate their revenue potential for years.

This becomes problematic when creators, like Tenney, explode in popularity and start making money at a rate that neither the creator nor the entertainment organization that signed them anticipated. In the case of Tenney, he became one of the most watched Twitch creators on the platform in just a few months with Faze. His follow-ups on Instagram, Twitter and YouTube have all seen a meteoric rise.

For creators in these positions, there is often no formal representation to guide their careers. Companies that exploit naïve new creations are not new. But just as regulations have been put in place for young actors, Tenney's lawyer says he and his client want to see the same thing happen within the content creator space. This is an area that continues to grow. Forbes reported in 2018 that "e-sport earnings will increase by 38% this year, reaching $ 906 million, and will reach $ 1.65 billion by 2021". creators who often do not have valid business or legal advice.

"Most of these content creators / streamers are also very young and are often unsophisticated, unsophisticated and confident," writes Freedman. "As a result, these young content creators / broadcasters are likely to be exploited and exploited, often by those who are supposed to defend their interests. Unfortunately, this has become the norm of the industry.

It may be the first time that a popular sports organization like Faze has been sued by one of its most popular personalities, but this is not a new story in the world of creators. line. YouTubers has been complaining for years that the so-called "multichannel networks (CMNs)", which are essentially intermediaries for brand and content creators, have been exploiting videographers since YouTube's personality became a viable career path more than a decade ago. Defy Media, one of the most prominent CMNs, is currently grappling with legal problems, after several creators sued the now-defunct company for not paying enough funds from video revenue.

Anthony Padilla, a veteran of YouTube, is perhaps the most iconic operating case of the YouTube world. He sold his popular Smosh YouTube channel, with over 20 million subscribers, "for zero dollars". Although he said it was "up to him" not to have read the contract further or to have taken the time to fully understand what he was signing, he wanted that his case is a lesson for the future creators of YouTube. "We had no representation. We did not understand, "said Padilla in a video of 2018." I do not know if we were exploited on purpose, but we took advantage of it, and that's my worst. "

Faze's members began to respond to Tenney's lawsuit. Richard "Banks" Bengtson, arguably the most popular member of Faze, tweeted his own statement after news of the trial began to spread online.

The lawsuit is more than just Tenney looking for his fair share of the income he deserves, according to Freedman. It's a statement of resistance. Freedman said The Hollywood Reporter"It's time for content creators, players and banners to stop taking advantage of oppressive, unfair and illegal agreements." He wants to use Tenney's case as "a warning that this behavior will no longer be tolerated".