Forbes: FaZe encounter financial troubles and risk running out of money by end of 2023
FaZe are facing serious financial hardship, according to a report by Forbes magazine. The American club needs a significant increase in investment, as its current funds will be enough to maintain its operations for only a year.
As of September 30 of this year, FaZe reported having $43.9 million in its accounts. Without attracting additional funding, the organization risks ceasing operations as early as November 2023.
FaZe's problems have to do with debuting on the Nasdaq in July 2022. Initially, one share of the organization cost $20, which allowed it to be the first in esports with a valuation of $1 billion, however, by November, the share price had plummeted to $1.7, while a market cap fell to $150 million.
Forbes emphasizes that throughout its existence, FaZe has not been profitable and relied on outside investment. Despite its great popularity, the club is experiencing problems with its monetization. In the first three quarters of 2022, the club generated $48.6 million in revenue, but only $14 million came from advertising and prize money from tournaments.
One of FaZe's main assets in esports is the CS:GO team. 2022 was the most successful year for the US organization in its six-year history of being around in Valve's shooter. The Finn "karrigan" Andersen-led squad managed to win such big events as PGL Major Antwerp 2022, IEM Katowice 2022, ESL Pro League Season 16 and IEM Cologne 2022.