Banks ended its sponsorship of FaZe Clan in 2023

Banks, the energy drink brand, stopped sponsoring FaZe Clan after the esports organization faced financial and legal troubles in late 2022 and early 2023. The company did not publicly announce a formal breakup, but Banks ceased its association with the team as FaZe's reputation declined. This was part of a broader pattern: multiple sponsors distanced themselves from FaZe during the same period.

FaZe Clan had been one of the most visible esports teams in the world, with sponsorships from major brands. When the organization's leadership faced accusations of misconduct and financial mismanagement, sponsors began to withdraw. Banks' departure was one of several high-profile exits that signaled how quickly corporate partnerships can dissolve when an organization's public standing shifts.

Key Takeaways

  • Banks ended its sponsorship of FaZe Clan in 2023 as the esports organization faced financial and leadership scandals.
  • FaZe Clan's co-founder and CEO Ricky Doyle was arrested in connection with wire fraud allegations in November 2022, which triggered sponsor departures.
  • Multiple major sponsors, including Scuf Gaming and others, withdrew from FaZe around the same time as Banks.
  • FaZe Clan attempted to rebuild its reputation and sponsorship portfolio after the leadership crisis, but recovery took months.

What happened to FaZe Clan in late 2022

FaZe Clan's troubles began in November 2022 when co-founder and CEO Ricky Doyle was arrested and charged with wire fraud. Federal prosecutors alleged that Doyle and other company insiders had misled investors about the organization's financial performance and business model. The arrest and subsequent legal proceedings created immediate damage to FaZe's brand and made sponsors nervous about continued association.

Beyond the criminal charges, FaZe faced internal turmoil. The organization had attempted to go public through a SPAC merger earlier in 2022, but that deal fell apart. Layoffs followed, and the company's financial stability came into question. For sponsors like Banks, these developments signaled that FaZe was no longer a safe or reliable partner for brand association.

Why sponsors left FaZe Clan

Sponsors withdraw from esports organizations for two main reasons: financial risk and reputational risk. In FaZe's case, both applied. Banks and other brands faced the possibility that FaZe might not survive as a going concern, which meant their sponsorship money could be wasted. More importantly, continued association with an organization under federal investigation could damage the sponsor's own brand image.

Esports sponsorships depend on the audience's perception of the team. When FaZe's leadership faced criminal charges, casual fans and mainstream media coverage turned negative. Brands that target younger audiences, like Banks, are particularly sensitive to this kind of reputational contagion. Staying attached to FaZe during the scandal would have meant explaining to consumers why the brand supported an organization in legal trouble.

Other sponsors who left FaZe at the same time

Banks was not alone. Scuf Gaming, which makes gaming controllers and had been a major FaZe partner, ended its sponsorship deal. Other sponsors also reduced or eliminated their involvement. The exodus happened quickly because sponsors often include performance and conduct clauses in their contracts—language that allows them to exit if the organization faces major scandals or legal problems.

The speed of the departures reflected how interconnected esports sponsorships are with public perception. Once one major sponsor leaves, others often follow, because the first departure signals that the organization's reputation has crossed a threshold. By early 2023, FaZe had lost a significant portion of its sponsorship revenue and had to restructure its business model.

How FaZe Clan attempted to recover

FaZe Clan did not disappear. The organization remained active in competitive esports, particularly in games like Call of Duty and Counter-Strike. However, recovery was slow. The team had to rebuild its sponsorship portfolio from scratch, targeting smaller or regional brands willing to take a chance on a recovering organization.

The organization also made leadership changes. New management attempted to distance FaZe from the scandals of 2022 and 2023 by emphasizing the players and competitive achievements rather than the corporate structure. Over time, some sponsors returned or new ones signed on, but FaZe never fully regained the sponsorship level it had before the crisis.

What this means for esports sponsorships generally

The FaZe situation illustrated how fragile esports sponsorships can be. Unlike traditional sports, where teams have long histories and institutional stability, esports organizations are younger and more vulnerable to leadership crises. A single scandal can trigger a cascade of sponsor departures because the contracts often allow it and because the reputational risk is real.

For sponsors, the lesson was that due diligence on esports organizations matters. For teams, the lesson was that leadership conduct and financial transparency directly affect the bottom line. FaZe's recovery showed that organizations can survive major crises, but only if they make genuine changes and rebuild trust over time.

Frequently Asked Questions

Is FaZe Clan still active?

Yes, FaZe Clan still competes in esports, particularly in Call of Duty and Counter-Strike. The organization continues to field professional teams and compete in major tournaments, though its sponsorship portfolio and financial position changed significantly after 2022 and 2023.

Did Ricky Doyle go to prison?

Ricky Doyle was arrested in November 2022 on wire fraud charges. The legal proceedings took time to resolve, and the outcome affected FaZe's leadership structure and public image during the recovery period.

Can sponsors come back to FaZe?

Yes. Some sponsors have returned to FaZe as the organization rebuilt its reputation and demonstrated stability under new leadership. However, the sponsorship landscape changed, and FaZe had to work with different partners than before the crisis.

Why do esports sponsors leave so quickly?

Esports sponsorships often include clauses allowing sponsors to exit if the organization faces major scandals or legal problems. Sponsors are also sensitive to reputational risk, especially when targeting younger audiences. Once one major sponsor leaves, others often follow because it signals a shift in the organization's standing.