The court papers state that none of the former team members have received their portion of the earnings from the digital items from XSET. The documents further assert that XSET initiated the arbitration procedure by ignoring "a letter requesting good faith negotiations" received in April of this year.
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In separate lawsuits filed in the state of California against the XSET organization, four professional VALORANT players and their coach are requesting that the court compel the company to arbitrate any claims regarding unpaid money from the Champions 2022 skin bundle.
Zachary “zekken” Patrone, Matthew “Cryocells” Panganiba, and Jordan “AYRIN” He, Rory “dephh” Jackson, and former coach Don “SyykoNT” Muir have all brought separate lawsuits against XSET before the Los Angeles County Superior Court of California, claiming that XSET has broken its agreement to pay the team members a predetermined 50% of merchandising revenue, which includes XSET’s share of the Champions 2022 bundle revenue. On August 16, 2023, each case was submitted.
The court papers state that none of the former team members have received their portion of the earnings from the digital items from XSET. The documents further assert that XSET initiated the arbitration procedure by ignoring “a letter requesting good faith negotiations” received in April of this year.
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The agreements between XSET and the team members specifically state how the skin income will be split: “XSET will split in-game skin [microtransaction] earnings 50/50 with the team. 8.33 percent of all skin income sales will go to each player or coach. The five plaintiffs, Brendan “BcJ” Jensen, and the coach of the VALORANT roster at the time are all mentioned in an amendment submitted in August 2022 as having an agreement with XSET to give them 50% of the earnings from in-game digital item sales.
According to the lawsuits, XSET has rejected a request from Judicial Arbitration and Mediation Services (JAMS) to pay the $2,000 non-refundable filing fee in accordance with the JAMS “Policy on Employment Arbitration Minimum Standards of Procedural Fairness.” By doing so, XSET has allegedly violated the terms of its own arbitration agreement.
The lawsuits specifically cite the following clause in the “Gamer Agreements,” the contracts between XSET and the former members of the VALORANT team, which govern arbitration: “XSET shall be responsible for all fees associated with the arbitrator’s fee, including associated travel expenses of the arbitrator, the rental of a room to hold the arbitration hearing, and similar costs.” In the court records, a legal counsel for XSET asserts that “this agreement covers the ‘arbitrator’s fee,’ not the costs of the arbitration.”
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