Snoop Dogg recently made a decision to step away from one of his many business endeavors.
According to HipHopDX, on March 29, the West Coast rapper “quietly” stepped down from his position on the board of directors at FaZe Clan, the Esports company where his stake went down by $7 million.
Joining FaZe Clan
As previously reported by AfroTech, during the 2022 Super Bowl Halftime Show, Snoop Dogg announced his association with FaZe Clan when he sported a gold chain with the company’s logo on it while performing. Shortly after, he made the official announcement via social media.
“It only makes sense to partner with FaZe Clan as both a team member and on the Board of Directors,” he 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.”
His Stock In The Company
In summer of 2022, Snoop Dogg’s stock in the company hit $7.4 million. Prior to that, Sportico reports that he received restricted-share awards that totaled 320,000 shares of FaZe stock, equivalent to $3.9 million, at the time.
Each of his shares was set to vest across 23 months between July 2022 and June 2024, and the report anticipates that Snoop Dogg will “probably” walk away with close to 106,000 FaZe shares. His total earnings as a member of the FaZe Clan and its board of directors for a little over a year will be an estimated $53,184.
FaZe Clan's Downfall
Despite telling Wall Street that it would bring in $91 million in sales for 2022, according to Sportico, FaZe ended up with management and revenue problems, resulting in many executives resigning and the company not meeting the projections it gave investors in the process of going public last year.
FaZe fell short and reported $70 million in revenue during its full-year earnings announcement.
At this time, the company is at risk of being removed from Nasdaq. Last week, it came in at the bottom of the list with only 50 cents per share — a 97.9% decrease in value from its peak position.
While Snoop Dogg did resign from the FaZe board, effective immediately, without a clear answer as to why, he did note that his decision was not based on a disagreement with the company.