Question
When he was 20 years old, Turner 'Tfue' Tenney, a top Fortnite player and popular YouTube streamer, signed a three-year agreement with FaZe Clan, an
When he was 20 years old, Turner 'Tfue' Tenney, a top Fortnite player and popular YouTube streamer, signed a three-year agreement with FaZe Clan, an esports organization with professional teams that compete in video games. Under the agreement, Tenney would play in FaZe Clan tournaments and training sessions and give three days a month to promotion and publicity, such as streaming videos. Further, Tenney was prevented from endorsing another gaming company or joining another Fortnite team. In exchange, he would be compensated with $2,000 a month. He could keep 80 percent of winnings from FaZe Clan tournaments, with the remainder going to FaZe Clan. Tenney was allowed to pursue brand deals, but would have to split the money earned with FaZe Clan. If FaZe Clan found such deals for him, it would retain 80 percent as a finder's fee.
In 2019, Tenney sued FaZe Clan, claiming the contract was oppressive and that Tenney did not understand the agreement's terms. Further, the complaint alleged that FaZe Clan is acting as a talent agency without the talent agency license required under state law.
Sources: Michael McCann, "Inside the Lawsuit that Could Shake Up the Entire eSports Industry,"Sports Illustrated, May 30, 2019 [www.si.com]; and Mike Snider, "Fortnite Pro Turner 'Tfue' Tenney Sues Esports Team FaZe Clan Over 'Oppressive' Contract,"USA Today,May 20, 2019 [www.usa.today.com]
Required:How might such agreements impact esports, esports teams, and the players? Was a binding contract formed between Tenney and FaZe Clan? Explain. How might such a contract be breached, and what might the remedies be for such a break? If it could be proven that Tenney did not in fact understand the terms of the contract, would Tenney have a right to rescind? Explain.
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