Snoop Dogg resigns from FaZe Clan board of directors

The popular rapper has resigned from FaZe's board of directors just a year after joining.

Snoop Dogg resigns from FaZe Clan board of directors

FaZe Clan, the popular esports and lifestyle brand, recently released its 2022 Q4 financial results. The results gave insight into its business dealings during its first year as a publicly traded company. However, the report also revealed that Snoop Dogg, a member of the company’s board of directors, has resigned from his position effective immediately. In an SEC filing on April 4, the company stated that Snoop Dogg’s resignation was not due to any disagreement with the company or its subsidiaries.

Snoop Dogg was appointed to FaZe Clan’s board of directors in March 2022. He was given almost $2 million in company stock. According to a report by Forbes, the stock was divided between Snoop Dogg, his son, and his manager. However, the report also noted that the stock will not vest until next year. By that point, it may be worth much less than its original valuation due to the company’s declining stock price.

Related: FaZe Clan receives deficiency notice from NASDAQ

FaZe Clan’s financial challenges

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In FaZe Clan’s letter to shareholders about 2022, the addition of Snoop Dogg to the board was noted as an accomplishment under talent highlights. The rapper was also listed as a member of the company’s talent. Snoop Dogg first teased his involvement with FaZe Clan in February 2022. He did so when he wore a gold chain with the company’s logo during his performance at the Super Bowl halftime show.

Despite the addition of Snoop Dogg to the board, FaZe Clan faced significant financial challenges in 2022. The company lost $53.2 million, and its stock price hit an all-time low of $0.40 per share on March 20. The company also underwent a round of layoffs in February 2023.

Moreover, the company received a deficiency notice from Nasdaq in 2023 and has 180 days to regain compliance. To regain compliance, the company must maintain a share price over $1 for ten consecutive business days. Otherwise, it will be delisted from the exchange.

FaZe Clan’s recent financial report sheds light on its business dealings and financial performance in its first year as a public company. However, the company’s financial struggles, including the resignation of Snoop Dogg from its board of directors, highlight the challenges that eSports and lifestyle brands face in the highly competitive and rapidly changing industry.

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