GameSquare, the parent company of Complexity, is set to acquire FaZe

Update: Valve has responded to HLTV’s request for comment, confirming the company’s stance against any existing conflict of interest in their competitions.

It also stated that it will be required to comply with the rule outlined below at “all ranked events” starting from 2025, when Valve’s new rules for running large-scale tournaments go into effect as part of the company’s effort to create an open ecosystem.

“After grappling with financial challenges following a disastrous public listing, the company responsible for the FaZe Clan brand and its diverse esports teams, including the globally ranked 7th Counter-Strike team, has managed to secure its future.

The board of directors has greenlit an acquisition by GameSquare, an esports holding company headquartered in Texas and backed by the NFL’s Dallas Cowboys franchise. This deal is anticipated to be finalized by year-end.

This significant development was disclosed in a joint announcement from both companies on Friday. The announcement also detailed several changes, including the return of FaZe Clan founders Richard “Banks” Bengtson, Thomas “Temperrr” Oliveira, and Yousef “Apex” Abdelfattah to leadership roles within the brand.

As a result of this move, FaZe Clan will become co-owned with another esports team within GameSquare’s portfolio: Complexity.

This arrangement raises potential concerns related to conflicts of interest. Both teams regularly compete together in top-tier Counter-Strike tournaments and are affiliated with ESL and BLAST, two of the game’s leading tournament organizers.

It’s worth noting that ESL’s rules currently prohibit a single organization from fielding multiple teams in the same competition, in accordance with section 2.11.3.1, “Multiple teams,” in the ESL Pro Tour’s general rules for Counter-Strike. However, it remains unclear whether this rule applies to separate entities with shared ownership.

Additionally, this situation could pose challenges when it comes to the two teams’ participation in Counter-Strike Majors and their qualifying events. Valve maintains a strict stance against any shared financial interests in their tournaments, as articulated in an excerpt from the official Counter-Strike Major rulebook:

2. Conflicts of Interest
2.1 Teams and players should not have any financial interest in the success of any team that they are competing against. To participate in this Tournament, players and teams are required to affirm that they have no conflict of interest (including any business entanglement such as shared management, shared ownership of entities, licensing, and loans) with any other participating team or its players.

2. Conflicts of Interest
2.1 Teams and players should not have any financial interest in the success of any team that they are competing against. To participate in this Tournament, players and teams are required to affirm that they have no conflict of interest (including any business entanglement such as shared management, shared ownership of entities, licensing, and loans) with any other participating team or its players.

Last Updated on October 21, 2023