A little over a year after joining the board of directors for esports and gaming lifestyle brand Faze Clan, rapper Snoop Dogg has resigned. The popular gaming club Faze Clan has seen its stakes plummet significantly. His resignation letter, filed with the US Securities and Exchange Commission (SEC), explained that his departure was not due to any disagreements with the company or any of its subsidiaries.
The hip hop star and Death Row Records CEO was given $1.9 million in company shares when he joined the organization, but they’ve since plummeted. The rapper’s share price dropped from $20 in August 2022 to $0.50 at the time of publication, a 95% drop that represents a huge devaluation.
The stakes take a deep dive
Snoop Dogg was one of the biggest backers for Faze Clan when it went public last summer, and the company has touted him as a pillar in its strategy to boost its fan base. The weed evangelist has been credited with increasing the overall reach of Faze Clan, which claims to have a total of 526 million followers across its social media platforms.
Those numbers are far from spectacular, though, and many of the organization’s top-line revenues come from a heavy focus on brand sponsorship revenue. The firm has also recently been forced to lay off 20% of its staff in order to recoup losses.
Its stock has continued to drop in recent weeks, dropping to a new low of under 40 cents, well below the minimum $1 needed for it to maintain a listing on the NASDAQ. This means that Faze Clan could face a possible delisting, but there are hopes that the company will be able to rebound in the future and recoup some of its lost share value.
Rana Kaplan named general manager
In a move that suggests the firm is trying to improve its operations, Faze Clan has hired Rana Kaplan as its general manager. She’ll be responsible for leading an internal team focused on achieving business process efficiency.
She’ll report directly to president and COO Zach Katz. She’s previously served as the company’s chief of staff.
Faze Clan has also filled five key executive positions in content operations, talent, Web3, creative operations and human resources. The new hires include Stash Slionski, formerly of “Tidying Up by Marie Kondo”; Vera Salamone, former head of talent; Brooke Grant, the previously-mentioned head of Web3; and Laura Ryk, head of creative operations.
Death Row Records X Faze Clan no more
The move follows a tumultuous financial year for the organisation, which saw its shares plummet by half on the day of its initial public offering. Despite the steep loss, Faze Clan’s CEO, Lee Trink, remains determined to turn the company around and improve its financial situation.
Snoop Dogg’s stock is now worth less than it was when he first joined the board of directors for Faze Clan, and he has been forced to sell them at a significant discount.
It’s a big blow to the company, which had been hailed as an ‘achievement’ and a ‘talent highlight’ for its collaboration with Snoop Dogg. But it’s not the end of the story for the esports organisation, which is still a major player in the industry and has some good teams. It’s just a matter of whether it can overcome its problems and continue to attract investors, which is a tough task in a market that is struggling to attract interest.
