Snoop Dogg has reportedly cut ties with eSports organisation FaZe Clan after his stake plummeted by $7 million.
Sportico reports the Long Beach rapper quietly resigned from FaZe’s board of directors last Wednesday (March 29), according to a regulatory filing to the Securities & Exchange Commission by FaZe Holdings.
The filing stated that Snoop Dogg told the company he resigned from the board immediately, with no information provided except the decision wasn’t due to a disagreement with the company or any subsidiary.
Snoop revealed he was part of FaZe Clan during his performance at the 2022 Super Bowl Halftime Show by wearing a FaZe Clan gold chain.
Following that, Tha Doggfather agreed to join the FaZe board in March 2022, along with a social media announcement introducing him as FaZe Snoop.
“It only makes sense to partner with FaZe Clan as both a team member and on the Board of Directors,” the rap legend said at the time. “The youth identifies with their brand and that’s something my son Cordell knew, which is why he brought us together.”
Snoop was granted restricted-share awards to about 320,000 shares of FaZe stock, carrying a value of $3.9 million at the time.
His stock reportedly hit $7.4 million last summer, but the company ran into management and revenue problems, with a number of executives resigning and failing to meet the projections it gave investors.
FaZe told Wall Street it would generate $91 million in sales for 2022 with a trajectory to hundreds of millions of dollars in annual sales through its half-a-billion social media followers. But in its full-year earnings announcement last week, FaZe reported just $70 million in revenue.
The company is now at risk of being thrown off the Nasdaq, closing last at week at 50 cents a share, which is a 97.9% decrease in value from its peak.
Snoop Dogg received shares that almost all vest over 23 months between July last year and June 2024.
He’s estimated to leave with around 106,000 FaZe shares, with his total earnings from seven months on the board of directors and over a year as a member of FaZe Clan likely to be $53,184.
