FaZe Clan, the popular esports organization, has made the surprising announcement that it has terminated its contract with CEO Lee Trink. The reasons behind this decision remain unknown, as neither FaZe Clan nor Lee Trink have publicly commented on the matter.
Lee Trink had been a part of FaZe Clan for over seven years, initially joining as an Advisor in 2016 before taking on the role of CEO. Prior to his time at FaZe, Trink had worked with renowned artists such as Coldplay and The Rolling Stones, as well as notable brands like General Motors and Harley-Davidson.
One possible factor contributing to Trink’s termination could be the current state of FaZe Clan’s stock price and the potential delisting from the Nasdaq stock exchange. CNBC reports that Trink had expressed confidence in taking the company public.
To remain on the stock market, FaZe Clan’s stock closing price must be at least $1.00 per share for ten consecutive days until September 19th, according to the notice of delisting. However, as of now, FaZe’s stock price stands at $0.22, with the last time it reached $1 or higher being in February.
In May, FaZe Clan laid off approximately 20% of its staff in an effort to plan for long-term success and sustain revenue growth amidst the low stock price. Trink emphasized that these layoffs did not signify a departure from their ambitions for FaZe. Nevertheless, given the circumstances, it may be challenging for some to believe in their aspirations.
The future of FaZe Clan remains uncertain, but it appears highly likely that the delisting will occur. Recent tournament results in CS:GO events like IEM Cologne 2023 and Call of Duty League Majors have had their moments but overall do not inspire much confidence.
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Source: DOTESPORTS
