DRAFTKINGS, AS I MENTIONED, DOWN
ALMOST 19.5%, AND SEIZE CAESAR’S
3%.
>>> ELSEWHERE IN THE BUSINESS OF
SPORTS, THE FAST FASHION
MERCHANDISE COMPANY FANATICS IS
BUYING MITCHELL AND NETS FOR
250.
TEAMING UP WITH CELEBRITIES LIKE
JAY-Z TO EXPAND ITS EMPIRE WITH
MITCHELL AND NEST KNOWN FOR ITS
THROWBACK PRO TEAM HER M --
AMERICA IF ERCH.
FAZE PLAN GIFTED THE CHAIN TO
SNOOP DOGG.
IT’S WHAT HE’S WEARING AROUND
HIS NECK IN THAT PICTURE.
THAT WAS FOR THE SUPER BOWL
HALFTIME PERFORMANCE UNDER THE
TICKER FAZE IN A $1 BILLION SPAC
DEAL.
A MARKETING AGENCY, E-COMMERCE
IF COMPANY AND A NEW SPORTS TEAM
ALL UNDER ONE ROOF.
THE MULTIFACETEDDED COMPANY
REVOLVES AROUND GAMING AND GEN Z
CULTURE.
HERE IS THE FOUNDER AND CEO,
LEE.
IT’S GREAT TO HAVE YOU ON THE
SHOW.
>> HEY, CHERYL.
THANKS FOR HAVING ME.
CHERYL: YOU’VE GOT A LOT GOING
ON AS A COMPANY.
[LAUGHTER]
>> WE SURE DO.
CHERYL: YEAH.
LET’S START WITH THIS MOVE TO GO
PUBLIC.
WHAT KIND OF TIMING ARE WE
LOOKING AT HERE FOR THE IPO?
>> SO LOOK, WE’RE MOVING AHEAD.
YOU KNOW, WE’RE ON TRACK AND,
YOU KNOW, SOMETHING THAT’S
LIKELY TO BE YOU MIGHT SAY THE
NEXT SEVERAL MONTHS IS WHAT
WE’RE TRACKING TOWARDS.
CHERYL: IS THE SPAC ENVIRONMENT
KIND OF GIVING YOU PAUSE RIGHT
NOW?
>> I MEAN, LOOK, OBVIOUSLY, THE
SPAC MARKET HAS BEEN CHALLENGED,
BUT I THINK SPACs ARE MADE FOR
COMPANIES LIKE OURS.
I THINK THAT A, YOU KNOW, A
COMPANY LIKE OURS, YOU KNOW, WE
NEED THE ABILITY TO REALLY
EXPLAIN WHAT WE ARE, AND THE
SPAC VEHICLE GIVES US THE
ABILITY TO DO THAT.
CHERYL: LET’S TALK ABOUT WHAT
YOU ARE, BECAUSE YOU’RE A LOT OF
THINGS AS I MENTIONED IN THE
INTO DUCTION.
REALLY FOR YOU -- INTRODUCTION.
WE’RE GOING TO GET TO ?OOP DOUG
IN A SECOND, BUT IT’S YOUTH
MARKET.
YOU’RE CAPITALIZING ON THAT
YOUNGER GROUP.
LET’S TALK ABOUT THAT.
HOW DO YOU MONETIZE WHAT IS A
TOUGH TO REACH AUDIENCE, WHICH
IS THAT YOUNG AUDIENCE?
>> YEAH.
I THINK, LOOK, I THINK THE FIRST
THING IS, YOU KNOW, WE’RE IN
CONVERSATION WITH GEN Z EVERY
DAY, RIGHT?
THIS GENERATION, LOOK, I THINK
ALL YOUTH GENERATIONS HAVE THEIR
OWN TWIST ON HOW THEY WANT TO BE
COMMUNICATED WITH, AND I THINK
THAT THAT’S REMAINED CONSISTENT
AND EVOLUTIONARY OVER THE COURSE
OF DIFFERENT GENERATIONS.
BUT GEN Z IS REALLY KIND OF
STARTING WITH MORE OF A BLANK
CANVAS.
AND THE THING THAT OLDER
GENERATION CARED ABOUT, JUST
DON’T -- YOU KNOW, A LOT OF
THOSE THINGS DON’T MATTER.
SO WE’RE IN A DAILY AND
CONSISTENT CONVERSATION WITH A
HUGE AUDIENCE REALLY, AT THIS
POINT OUR NETWORK IS, LIKE, 400
MILLION FOLLOWERS, AND WE SPEAK
TO THEM DAILY AND IN THEIR
NATIVE TONGUE, IN THE PLATFORMS
THAT THEY LIVE ON.
AND SO WE’RE IN CONSTANT
CONVERSATION.
SO IT’S GIVEN US THE ABILITY TO
JUST COMMERCIALIZE OUR
RELATIONSHIPS BY BRINGING, YOU
KNOW, BLUE CHIP BRANDS LIKE
McDONALD’S, NISSAN OR BEATS
AND INTRODUCING THEM TO OUR
AUDIENCE, AND THEN THERE’S
DIRECT WAYS WE COMMERCIALIZE
LIKE WITH OUR APPAREL.
CHERYL: OKAY.
SO YOU’RE COMMERCIALIZING WITH
THE APPAREL, BUT WHAT ABOUT THE
SPONSORSHIPS?
FOR INSTANCE, THE CHAIN THAT
SNOOP DOGG WORE, I’M ASSUMING
THAT’S SOMETHING YOU HAD TO PAY
FOR, I’M ASSUMING.
>> I WILL SAY YOU’RE ACTUALLY
ASSUMING WRONG ON THAT, ON THAT
PART.
SO, YOU KNOW, SNOOP HAS BEEN IN
OUR ORBIT FOR A LONG TIME.
OUR CHIEF STRATEGY OFFICER HAS A
LONG RELATIONSHIP WITH SNOOP,
AND HE’S BEGUN TALKING TO HIM
ABOUT FAZE REALLY FOR SEVERAL
YEARS, BROUGHT IN SNOOP’S SON
KORDELL INTO THE CONVERSATION,
AND WE’RE CERTAINLY EXPLORING
WHAT A RELATIONSHIP LOOKS LIKE.
BUT THE REALITY IS, IS HE KIND
OF JUST BLESSED US WITH WEARING
THAT CHAIN.
AND THERE’S NO DEAL THAT WAS
PREDICATED ON IT.
I THINK THAT IT WAS SORT OF
ANOTHER MOMENT THAT SHOWED HOW
THIS SUPER BOWL WAS THE MOMENT
WHEN GEN Z ROSE TO POWER.
AND I THINK YOU SAW THAT WITHIN
HALFTIME, YOU SAW THAT WITH THE
FACT THAT, YOU KNOW, SNOOP AND
WHAT HE WORE THAT DAY WAS ALL
THE THINGS THAT REPRESENTED HIM.
YOU KNOW, SNOOP IS ALMOST LIKE
THE ORIGINAL GAMER KID.
HE’S LIKE THE ORIGINAL INTERNET
KID.
CHERYL: YEAH.
>> HE’S BEEN A GAMER AND A
CHAMPION GAMER FOR A LONG TIME.
LOOK, I THINK WE’RE KIND OF --
WE WERE HUMBLED TO SEE THAT HE
IS, YOU KNOW, THAT THAT’S PART
OF WHAT HE WANTED TO PRESENT.
CHERYL: WELL, HEY, HE’S ANY
GENERATION -- MY GENERATION TOO.
ME AND MARTHA STEWART.
REAL QUICK, HAVING AN E-GAME ON
THE COVER OF "SPORTS
ILLUSTRATED"DED, GETTING A
MAINSTREAM BRAND TO REALLY GET
INTO THIS WHOLE, I MEAN, THAT’S
HUGE RIGHT THERE.
TALK TO ME ABOUT THIS.
HOW MEANINGFUL WAS THIS, THIS
COVER?
>> IT WAS IMMENSELY MEANINGFUL
BECAUSE, YOU KNOW, LOOK, I’VE
BEEN IN THE SPACE FOR SOME TIME,
AND PART OF THE DISSONANCE WAS
HOW BIG THE SPACE WAS, HOW
IMPORTANT IT WAS, HOW IMPORTANT
WE WERE AS A BRAND TO THIS HUGE
COMMUNITY, BUT THE REALITY IS
THE TRADITIONAL WORLD WAS --
WHAT I USED TO SAY BLISSFULLY
UNAWARE OF IT FOR SOME TIME.
AND SO WITH SPORTS "SPORTS
ILLUSTRATED"DED, IT WAS ABLE TO
TRANSLATE TO THOSE PEOPLE THAT
DIDN’T UNDERSTAND GAMING, THAT
CERTAINLY DIDN’T UNDERSTAND
FAZE, HOW IMPORTANT WE ARE TO
SPORTS OVERALL.
AND SO IT WAS, YOU KNOW, IT WAS
CERTAINLY A SEMINAL MOMENT FOR
US TO REALLY DEMONSTRATE THE
IMPORTANCE OF THE SPACE AND THE
IMPORTANCE OF FAZE CLAN WITHIN
IT.
AND I THINK THAT ALL, YOU KNOW,
GAMERS AND GAMING COMPANIES
CELEBRATED THAT MOMENT AS
FINALLY BEING RECOGNIZED FOR THE
IMPORTANCE OF POP CULTURE.
CHERYL: WE’VE GOT TO RUN, BUT I
TELL YOU WHAT, THE SUPER BOWL
THIS YEAR LOOKED SO DIFFERENT
FROM THE ADVERTISING, FROM WHO
SPONSORED THE PARTIES, FROM THE
HALFTIME SHOW, ALL OF IT.
IT WAS A VERY, I THINK, VERY
FORWARD-LOOKING SUPER BOWL, AND
I’M SURE THE NFL IS HAPPY ABOUT
THAT AS WELL.