A top ‘Fortnite’ player who won more than $500,000 is suing his team over an ‘oppressive’ contract. Here’s why other YouTubers are taking notice.

FaZe Clan

Professional gamer Turner "Tfue" Tenney is suing his former team, FaZe Clan over a contract that he calls "oppressive and predatory."
Tenney has won more than $500,000 playing "Fortnite" in tournaments, and is one of the most popular players in the world. He has more than 10 million subscribers on YouTube, and another six million followers on Twitch.
The lawsuit alleges that Tenney’s contract allowed FaZe Clan to retain up to 80 percent of Tenney’s earnings from sponsored advertisements, and that it prevented him from signing valuable deals with potential sponsors.
Ricky Banks, the owner of FaZe Clan, said the organization has made just $60,000 off its partnership with Tenney since April 2018 and claimed that Tenney declined to re-negotiate the terms of his contract prior to litigation.
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Turner "Tfue" Tenney, one of the top professional gamers in the world, is suing his team, FaZe Clan, over claims of unfair business practices and breach of contract.

In a copy of the lawsuit obtained by The Hollywood Reporter, Tenney alleges that FaZe Clan retained 80% of the revenue generated from his sponsored videos and advertisement deals, as well as 50% of the revenue generated by his in-person appearances.

"Faze Clan’s goal is essentially to ‘own’ Tenney and other content creators/streamers and professional gamers," the lawsuit alleges. "FaZe Clan, which is not a licensed talent agency, exploits young artists like Tenney through oppressive and predatory long-term contracts whereby FaZe Clan essentially ‘owns’ the artist and the artist’s career."

Tenney, 21, has won more than $500,000 playing in competitive "Fortnite" tournaments, and boasts more than 10 million subscribers on YouTube. He’s the third-most popular gamer on Twitch with six million followers, trailing only Tyler "Ninja" Blevins and Michael "shroud" Grzesiek. Like other professional gamers, Tenney relies on sponsorship deals, paid advertisements, and viewer subscriptions and donations to generate income when he’s not competing.

FaZe Clan manages a number of popular YouTube personalities and esports teams across multiple games.

Tenny signed a six-month contract with FaZe Clan in April 2018, which was later extended to a 36-month agreement. Tenney’s YouTube channel had approximately 150,000 subscribers in May 2018, but that number has grown more than 10 million in the last year, with the help of promotion from FaZe Clan.

However, the lawsuit requests that Tenney be released from his contract, and for financial restitution from FaZe Clan.

Business Insider has reached out to both Turner "Tfue" Tenney and FaZe Clan for further comment.

Here’s why the two sides are at odds, and why other YouTubers are starting to take notice.

Tenney’s lawsuit accuses FaZe Clan of operating as an unlicensed talent agency.

FaZe Clan

Tenney’s lawsuit repeatedly accuses FaZe Clan of operating as an unlicensed talent agency, in violation of California law.

The suit claims that Tenney’s contract restricted him to sponsorship deals that were negotiated by FaZe Clan, but alleges that the organization did not have the legal standing to negotiate on an artist’s behalf. Tenney’s lawsuit claims that FaZe Clan’s contract was illegal and prevented him from exploring more valuable partnerships than the ones FaZe Clan negotiated for him.

Tenney claims that he was pressured to perform dangerous stunts and drank while underage at FaZe Clan’s "Clout House."

FaZe Temperrr

Tenney also claims in the lawsuit that the organization pressured him to live in a house in Hollywood Hills with fellow YouTubers. Members of FaZe Clan referred to the shared home as "The Clout House."

Tenny alleges that FaZe Clan threw multiple parties at the house, where they provided alcohol to underage players — including Tenney, who was 20 years old at the time, he said.

He also alleges in the lawsuit that he was encouraged to participate in dangerous stunts with other players for YouTube videos.

In one such video, Tenney was hit by a car while skateboarding on camera.

The lawsuit says FaZe Clan wants to "own" Tenney and other content creators. FaZe Clan claims that it’s only made $60,000 from its contract with Tenney.

FaZe Clan

FaZe Clan issued a statement on Twitter refuting Tenney’s accusations, and claiming that the organization has only made $60,000 off its partnership with Tenney. While FaZe Clan claimed a portion of his earnings from sponsor agreements, the organization said Tenney kept all of his tournament winnings from playing "Fortnite," as well as the income generated by his personal YouTube and Twitch channels, which are among the most popular on both platforms.

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