I Woke up early today, but being in the Oregon everybody told you awful going on behind the scenes and it's honestly heartbreaking. Like it is rough, it seems completely miserable and just this sinking ship, this festering wound that continues to ooze pus. and it's all very public because now it's publicly traded so more people can see it and more and more members are coming forward. Um, you can go for the name.

Okay, but it's gonna tell us it's coming out of your paycheck. Gotcha something? Yeah, I'm good Eagle the whole day probably on that. What's that? I Probably don't get that whole day because of course not okay. if you go to work, you go for a day of work, right? Better luck tomorrow.

I Guess it's just a catastrophe and I wanted to talk about it a little bit today because I mean all of you know I own an Esports organization Moist. Esports I Promise you, there's no orgs doing it like we're doing it. We're the best goddamn morgue in the world and we're also losing tons and tons of money. But the difference between us and FaZe is we know that we're in it losing money with a smile on our Goddamn face because the content is the legendary.

It's not people's elbows and tombstone. Shut up. I'm tired of digging holes Grandpa Well, that's too damn fast. I Just chose two Random clips from some watch parties we did recently.

One of them is like a rocket League Regional and then that one's actually for my most recent watch party for the Moist Moguls Valorant Squad Our Valorant team when we beat Shopify Rebellion last week. so just quick moments that were on top of my brain. It's so much fun! Yes, we lose a ton of money, but we're not at risk of closing anytime soon. In fact, we're only going more.

Hog Wild in the industry. but FaZe Clan is what we're here to talk about today because it is just looking terrible for them. FaZe Tico Recently put up put out a video putting them on blast, going over some things and I kind of dove in in detail on some of the stuff that I've learned in the industry and exactly what's going on over there. So I just wanted to talk about it a little bit.

I Would wager a guess that all of the original phase members are at the mercy of all the suits that have been brought in and took control of. FaZe How are you going to be the biggest organization in the world? Leaders in this scene, pushing this scene forward, pushing this industry forward, leading by example and you can't even take care of your members that's been in for 12 years. I've never claimed to be roads because it's that's the whole Space Yeah, no joke. yeah this is always a chat.

Did people accept like S7's package like that or like ex do people expect like a check or so or something? I I I'm out of the uh I don't get it infested with Silicon Valley tapes. They assumed aggressive control of these organizations probably by flashing tons of money in the face of young men that established them like in this phase. Example: you had these young kids Call of Duty kids see these like really established businessmen coming in waving fat stacks and they give up too much control of the company. and before they realize what that actually means, they end up in a position like this where these suits have no idea on what exactly the company even produces what the product is.

They don't care about the people in it, it's all supposed to generate money and they don't know how to do that. So now you have phase being public worth less than a stick of gum. They have no way of writing that ship. They continue to spend money on brand recognition plays which don't equal money in the bank so it continues to spiral out of control.

We have seen it with so many Esports orgs. Now a hundred percent is that they sell one of the biggest bright recognition and um way of connecting to the to the to the fans then most orgs still. So yeah the company's tanking and I get that and because all the investors and they they bought franchise and a bunch of uh yeah I get it, lose the money but still I think I Still think the org itself has a lot of power. Still, investors ruin everything it seems.

Well it's not just investors so a lot of these. Suits come in and try and like. I do I Don't want to say like to like sell people on a delusion because FaZe is the most well-known gaming brand like it's a it's a normie brand. It's breached the Normie Market Kids know it even like in school right? So it does have brand play and you would think that translates to money.

but in this space it's Unique where it almost never does. Yeah, so much money because they bought so many creators all at once and still had no idea what to do with them like they spend tons of money on content you remember like the millions they pulled into like uh, be the next phase member contest and like no one watched it. they had like 200 Peak viewers on that whole thing. It was like this live stream series that only got like an average of 50 viewers or most.

you don't even know what the I'm talking about. Case in point, they spend so much money on things because they don't know what the product is. they're trying to corporatize it. But outside of like the FaZe members, it was just suits trying to make number decisions that don't actually work like they did they.

It's so misguided. They have people at the helm that don't know the space, they don't know what they're doing and then they on people that have been there since the beginning. All of that's been publicized. It sucks.

I Feel bad for them. They were young kids, they got taken advantage of by the suits. Just greed always will be. Well, it's more than greed because it's super misplaced.

For example, I Feel like it would have been the play to band together as the whole Squad and be like yo guys? Let's just make sure that like we create the company, we make the company boom and we all have certain shares or some involvement or whatever from the get-go Instead of being like yo guys, I'm in phase and I'm phasing and we're chilling. Oh it seems like they kind of like you got like Mutiny over like over a bit of time and people that know what was going on and people thought they were in, people thought they were out and it means business. They're always going to get rats as it is buying. Snoop Dogg What the has Snoop Dogg done for? FaZe Besides take one picture where he had a phase necklace, Has he even been in a single piece of content? That's a genuine question.

I Don't know if he has let me see. fairly confident he hasn't been in a piece of content since the announcement. It looks like March 7th when he signed is the last thing he's been in for them. like that is a worthless spend.

completely worthless and I guarantee it was an equity play I guarantee. Not only did they pay him, they gave him stock in Phase that's worthless. He doesn't do anything for them, but they think because it's Snoop Dogg with a name like that, somehow him being on board is going to translate to money in the bank to start getting correct green somehow magically. but it never does.

How then make fun of. oh, they're doing that. when did that we're talking about when did that and then all of their Esports teams are a huge expense even though we can kind of get in a lot of ways. Okay I Don't think Otk has made a singular like bad actual company like merger slash Acquisitions I think I think the business end I've been doing pretty good I Don't really see a problem with it.

Yeah, there's a problem here and there and people there's a drama with it I get that. but on the company end I Don't think there's anything wrong. When they're good, they still don't make money. I Always said salaries are so expensive Travelers Take last year I've always had this taken like 30 of the prize money.

It doesn't offset the cost of what they're spending. so tossing even more money into the fire pit and they have like 90 creators in like a crazy large content team that produces that no one's watching like they say, they have no way of making money, they're so trapped. The only contract I've ever had with face. Guess what contract? That is the only contract I ever had.

80 20. 80 20. the Tifu contrast 80 20. I ever had? Yes I was publicly defended on Twitter everywhere about that whole situation I was in the same contract myself.

The Tfu contract was yes, but I didn't like this baby like this. Hey I'm saying right now you guys are you guys are really trying to prompt like false and uh, just lies and dogs. It gets really trying to prompt bad things on purpose that are objectively incorrect because you don't. You disagree with certain members of Otaker's uh, this is how it is though.

you know you're prompting it. A big drama if you guys don't remember. Tifu publicized his phase contract. It was extremely predatory.

Phase would keep 80 of everything he'd ever make. He only gets 20. at least I think it was 80. it might have even been more.

it was 80 or more of everything tea food does or whatever they get 80 plus percent or whatever and he only gets 20. that was the contract some somewhere in that ballpark. I'm pretty sure it was 80 20. 80 to phase for free.

By the way, while you sell the draw for millions and millions and millions of dollars, you can't even pay me. I've talked about that before. This isn't actually an exclusive phase problem. With what he just said there, a lot of big orgs will force the creators that they sign in the org to do their ads for them and they get nothing.

So I'm not going to say any names. It's not worth it. A lot of orgs when you sign a Creator they now become your marketing vessel. So if you have a Chipotle deal for your Esports org, that deal will now extend to all of your creators.

But they don't get that money so they'll do the ad for you and you take that money. it's part of them being a part of your company. That's that's the benefit to the company. So the practice begun to be like uh, the practice was like that I think in the past because people would get um a lot a crazy amount of incentives or be in the org.

So like if you're like TSM they're like really good ad in centers back in the days anytime with them. but I know their contracts by hand is TSM you had to rock. Other logically one of the rep and you would get a pretty dank amount of money um off their ad rates and um, their ad incentives. Which right? But I Think the thing is that evidence is that the space changes, operations change and then they don't change the contracts for um creators.

What happens then is that um creators are doing a bunch of and they're not getting the pluses that they used to like. it is that's a problem. Oh They'll do an ad for Chipotle for free and the org's the one that actually takes in the money. It's a huge problem.

That's something I've talked about before as well I think that sucks I think that is trash. It is up with all these high-end orgs. Like I said, they don't know how to make money in the space. They don't Nobody does.

Nobody does Industry that bleeds money and these suits came in because they saw this crazy like 15x multiple in the industry for some reasons you know dollar signs in their eyes and thought they could make so much cash of it and cash off it and quickly realize they can't and they don't know how. So they desperately started making. this is probably greedy, predatory decisions. which leads us to today and they're still losing tons and tons and tons of money I Just owe you something because it's such a privilege to be in Phase right? I've been at this great.

That's how that's how the Orcs get you guys like no obviously I'm not nearly as important bro. You think I hate it on the ores is weird you know I'll show you with that ticket I think a lot of Orcs Try a lot to maintain the image and try to maintain what Esports should be and always meant to be. And the problem is they're gonna bridge the gap to where like you'll win to keep these Sports Live or whatever right? And it's like a it's like a dream right? But I think their involvement is needed because otherwise it would all fall apart. So somebody needs to lose money in order for this to stay alive.

Unfortunately important as these guys. but I'm also not getting paid for anything I'm doing I'm just in the middle. Hey, you are valuable for what it's worth though. Tico they're also not getting paid.

So like the other members he mentioned like the other co-owners when Tico's doing those free ads for them, they're doing the free ads too and phase itself. The Org gets the money, but it doesn't offset the cost so it's still just zero. They still aren't getting from it. it's completely.

it's a complete wash. Does Face have Brawny? I'm pretty sure FaZe has Brawny LeBron's son. Yeah yeah, so this is a good take. This is I think they if money dies, any sports or Competitive Gaming will always exist like I did back in a day.

But you always want things to be bigger and you always have plans for things to expand, right? You always want these products to go of course because will you like something you're passionate about something? you want more people to consume it right? That's like the main goal of course is that when things are expanded, the problem is that people thought that the expansion was worth way more than was going to be way more expensive. And on top of that, people would buy jerseys or buy tickets. It'll make money right. And the problem is that they realize that that dream they they oversold it and people don't.

A lot of people don't understand this chat. I'm sure a lot of these videos will not talk about this. Okay, and it's a very important concept. Venture Capitals, People that have a lot of money like the business dollars will invest into inject money in the Esports and orgs, right? And what happens is by overselling the product and by over by blowing out reports, all the stats and by trying to join money right? What happened is that all the VCS are putting a lot of money into this and then whenever after like five years, whatever amount of time they realize their Investments aren't paying back.

and if there's no way to be profitable any given points, right? Well they're gonna be scarred. And what that does is that other companies down the line will not go into. Esports A bunch of other companies want to go to these. Sports What do you think happened but OverWatch League Yeah OverWatch League Scarred everybody.

It was the worst image for of all time. It was like 20 mil 30 mil for a franchise against in their spots. Did you guys see the profits or or the the the earnings per quarter for the for the watching orgs. It was a disaster.

Dude it brother it's insane how bad it is and if these people don't they don't go back in there. You know So down the line that that the market. you know it's really bad. they do have they do have brownie I Thought so all of those people are probably payroll but also own shares in Phase like he mentioned and significant ones too I Imagine which is worthless.

worthless. Yeah, it's the idea of getting a celebrity involved in an Esports org is cool, but only if that celebrity is actually going to be active in the org like I Have no doubt in particular Lil Yachty could have been huge for FaZe and actually I think he did do quite a bit with phase for a little while. I Don't know if he still does but like that can work. you bridge the gap between normies and your org.

and if that Normie lightning rod like Lil Yachty is enthusiastic about the org. A lot of good can come from that they they tried so it's not a bad play but they're choosing the wrong partners and giving way too much for it. and the first one that's like impossible. me having to invest fifty thousand dollars of my own money and even in that whole process, they me over.

So I'm asking you this is not a video where I'm gonna. That's unlucky too that 50k would go a long way right now with phase public stock. In the absolute unlucky, that 50k I bet didn't even buy him a full percent. probably not even close to a full percent.

phase used to be valuable valued at a billion dollars and then I'm making it in Oregon Orgs are like a money sink. are you stupid bro orgs or a money sink. It's literally the way to burn money the fast out there. Yeah, things used to be valued at a billion dollars before going public I think it was actually right before going public and now it is valued at I believe 30 mil.

What was it? These used to be valued at a billion dollars before going public I think it was actually right before going public and now it is valued at I believe 30 mil. Well I mean they're I mean that that? That's because I exaggerated. It's way it was worth just shy of a billion in October 28th of 20. it's not 30 minutes worth way more than that.

So not that long ago or roughly one billion dollar valuation. oh my. God That's another thing that I've talked about a lot. So since all of these orgs have been taken over by these corporate zombies, they do not give a about any of the teams at all.

Even when they take first place, you'll be lucky to get a tweet out of them. You'd be so privileged to get like a tweet out of it because it doesn't matter. they don't make money off of it. Yeah, and they're realizing that now, even when they take first in a major, they don't make anything off of it and it pisses them off and they can't figure out how to monetize it.

Show them what the you mean I don't make any money off of it. but Ludwig and I know that like Lud's signed up. No, he knew our financials, he knew how much we were losing and it's a lot. But the difference is we know.

But the the thing is if I understand the stock is almost 30 minutes. That is unreal. That's why you see a Creator lead. Orgs are kind of working like it's not just boys at that price killing it.

I think Carmen Corp is actually almost profitable, which is unheard of in the space. Carmen Corp is led by French streamers it well mainly a French streamer comedo and they kill it. They're doing amazing and now you have the yeah if I could buy Facebook anymore I'd do it I would do it instantly. you chat is your shorts edited if phase was worth 30 mil I could buy it right now for 30 minutes I would do it but I didn't think I would end my stream and why the money? Boom Done this guy's toast with disguise I think even uh, Xqcs toying around with the idea of getting in the space like the creator-led orgs are really like the only viable way right now if because like it's content, the product is content TSM is still doing well.

Yeah TSM Still Remains Profitable. Even with the FTX collapse, Hundred Thieves remains profitable because of their merch and their Acquisitions on the business side. TSM is like a unicorn in the space though for sure. TSM is like like absolutely somehow able to do it really well.

100 Thieves is really smart with their business acquisitions. That's another big thing. I've talked about a lot of these: I Don't think I think yeah at this point I Wish people understood it that a Hundred Thieves is so much more in Esport. I Get it.

their passion is Esport bro. It's like a it's like a merch selling operation I feel like I think 100 Thieves angle everything that they do to sell hoodies and merch and I did it. That's again, that's Esports blah blah I I get it. I get it.

But it seems like from my perspective as I guess a consumer they're like they're Esports like the the engines and the rest like boom. It's a lot of marketing but it's working so sure that's that's fine. I'm I'm not even against it. People have kind of got privy to it.

It's not a bad thing yet. but I think they're showing ways of making Xbox operation profitable. or at least they're trying different Avenues because the traditional way of doing Esports have shown it's a money sinkhole and that's how it is. Do it.

So I don't think they do it so much anymore. Try things out the first getting in the space. It wasn't uncommon to see these contracts extend to anything involving their talent. so we'd even seen a contract that took chat twitch, sub a phase, a bot Snoop Dogg and the normies went hardcore and in Phase One Mega mainstream and start sending merch and make it profitable.

People would say Page is a genius. 100 things are stupid. They didn't buy celebrities. Uh, phase did people are being hindsight Heralds Not only, but I Tried buying celebrities out in the past to further their brand and they had a lot of money from investment they they had to try something they tried, it didn't work in a story I Don't think they're they're evil for it or some.

I just think that's how it is. Dude like people need to stop being hindsight. Herald's Revenue Totally unrelated to the org. like if you were a streamer that joined the org, they were entitled to some of your Twitch sub.

Revenue which blew my mind. Blew my mind like it's totally unrelated to everything involving the org you're signing with. It was so shady it was so. But that just shows how desperate they were.

and I tried to get green. There was no links they wouldn't sink to. Yeah Anyway, has naughtiness. You're delivered from this.

You're delivered. You are. You are released from this. You know this is X x on the video.

Anyone knows that boy I don't know. He's just so sore. Anyone knows that boy I don't know. He's just so sorry.