Ex-XSET VALORANT Team Sues Over Revenue, Wrong Forum?

Four professional VALORANT players and their coach have initiated legal proceedings against the XSET organization. The players, namely Zachary “zekken” Patrone, Matthew “Cryocells” Panganiba, Jordan “AYRIN” He, Rory “dephh” Jackson, and their former coach Don “SyykoNT” Muir, have lodged separate cases in the Los Angeles County Superior Court of California. The central issue at hand is the Champions 2022 skin bundle revenue.

Allegations Against XSET

The team members allege that XSET has backtracked on its promise to disburse 50% of the merchandising revenue, which includes XSET’s cut from the Champions 2022 bundle revenue. These cases were officially registered on August 16, 2023. Documents from the court indicate that XSET has abstained from paying any of the ex-team members their entitled share from the sales of digital items. Adding to the contention, the organization is said to have disregarded a letter dispatched in April 2023, which called for good faith negotiations, pushing the matter towards the arbitration process.

Contractual Details

The agreements inked between XSET and the team members lucidly detail the revenue distribution for the in-game skin. The contract reads,

“XSET will share in-game skin [microtransaction] revenue with the team in a 50/50 rev share. Each Player/Coach will receive 8.33 percent of all skin revenue sales.”

An addendum from August 2022 further clarifies XSET’s commitment to allocate 50% of the proceeds from in-game digital item sales to the VALORANT team of that period, which comprised all the plaintiffs and Brendan “BcJ” Jensen.

Arbitration Hurdles

The lawsuits also highlight that XSET is allegedly not complying with its own arbitration agreement terms. The organization is accused of declining a directive from Judicial Arbitration and Mediation Services (JAMS) to remit a USD 2,000 non-refundable filing fee, a mandate under the JAMS “Policy on Employment Arbitration Minimum Standards of Procedural Fairness.”

Plaintiffs’ Demands

The aggrieved parties are now rallying for a court order that mandates XSET to enter into arbitration over the disputed revenue shares. Additionally, they demand XSET to cover all administrative expenses and lawsuit-related costs.

XSET’s Response

In a counter to these charges, XSET conveyed a statement to Dot Esports. The organization voiced its dismay over the contractual disagreements, emphasizing that such rifts are an unfortunate but real aspect of professional sports. XSET staunchly refuted the assertions made in the complaint and expressed its determination to validate that the contracts remained unaltered as claimed. The statement culminated with XSET’s unwavering support for its players and the overarching esports realm.

Photo by Colin Young-Wolff/Riot Games

Muir Don aka SyykoNT v XSET Inc., Case Number: 23STCP02986

Counsel to Muir Don aka “SyykoNT”

• Caterina Tiffany Rose

Counsel to XSET Inc.

• Unknown