LeBron James Reveals Ambitious Plan to Build Hollywood Empire

This story first appeared in the Feb. 20 issue of The Hollywood Reporter magazine.

The janitor at the Akron, Ohio, office complex that houses the LeBron James Family Foundation and LRMR, the sports management company headed by the NBA superstar, eyes me warily. We're in the elevator, though I don't know what floor I'm supposed to go to. There are signs for medical offices, investment firms, a real estate company. But nothing for the foundation or LRMR. "We took it down," explains the janitor. "Too many people peeking in the windows." Having established that I am not an overzealous fan, he presses the button for the third floor. "Down here on your right," he says, gesturing at the deserted hallway. "Last door."

See more LeBron James' Career and Life in Pictures (Photos)

I see two impressionistic silk-screen portraits of James hanging in the lobby of a dark, seemingly empty office. More camouflage. When I ring the doorbell (a sign instructs: "press hard"), a cheerful woman emerges from the shadows. "Sorry," she says, after she unlocks the door. "We like to keep it dark."

James isn't even here (I am taking a tour of his office in advance of a meeting with him the next day). But several pairs of his signature Nike sneakers — his deal with the shoe giant nets him $20 million a year — sit in display cases. The nameplate on his desk reads King James. I have been talking to his adviser Adam Mendelsohn about this interview for several months. There have been multiple postponements, not least of which was the delay caused by his return last summer to the Cleveland Cavaliers in a $42.2 million, two-year deal that made global headlines.

In Akron — where the sign marking the town line announces "Home of LeBron James" — residents are likely to spot James taking in a movie at the multiplex or eating a steak at Ken Stewart's Grille with his childhood friend and business partner Maverick Carter (the M in LRMR; the Rs are for James' sports agent Rich Paul and right hand Randy Mims, also friends from the early days). Though he lives on an estate with a steel fence and multiple guard shacks, James doesn't always like to be sequestered. In better weather, he'll ride his bike to the office. Everyone here knows where James lives; when the rumors started flying last summer that he would leave the Miami Heat and return to the Cavaliers, hundreds of fans (and reporters) showed up to stake out his house. But even here in Akron — where he grew up in subsidized housing, where his mother, Gloria, and his closest friends still live, where he and his wife, Savannah, who have been together since high school, are raising their family (sons LeBron Jr., 10, and Bryce, 7, and a daughter, Zhuri, born Oct. 22) and where he is a familiar sight at his alma mater, St. Vincent-St. Mary High School — even here, his stardom is all consuming.

"I can't live anywhere normally," he tells me the next day at his office. He has just padded in wearing gray sweatpants, a white T-shirt with a gray Nike swoosh and black Nike shower shoes with socks. He folds his 6-foot-8 frame into an office chair and rests his massive tattooed arms on the table. "I do normal people stuff," he continues. "I go out to eat. It's just I'm not normal, and I know that. It's not like I'm trying to say I'm bigger than ..."

Asked if he misses anonymity, he smiles: "It's been so long, I don't remember."

At 30, James already is assured his place in basketball's pantheon of all-time greats. But even with likely many years left in his playing career, he is laying the groundwork for a business empire. Having already earned close to half a billion dollars through endorsements, investments and NBA contracts, he envisions an entertainment conglomerate that befits his one-of-a-kind stature and philanthropic, family-values, all-for-the-fans persona.

His stardom already has opened doors in Hollywood. Spring Hill Productions, named for the housing complex James moved into with his mother when he was in sixth grade, is growing a portfolio of TV and digital projects where ownership and creative control are elemental: the Disney series Becoming; the Starz scripted dramedy Survivor's Remorse; the reality show Uninterrupted for Turner's digital platform Bleacher Report; a trivia game-show pilot for NBC. Sources say the company is close to finalizing a deal for a series show on CNBC — which has had success in primetime with reruns of Shark Tank — that will have James and Carter leading the transformation of distressed businesses. And they also are talking to executives at NBCUniversal's male-targeted Esquire Network about a "bucket list" show featuring James.

Jay Z's Roc Nation and Three Six Zero Partner to Launch Film and Television Management Arm

Jay Z's multivalent entertainment company Roc Nation and the UK and US-based management company Three Six Group (home to Calvin Harris, Deadmau5and Frank Ocean) have announced the formation of Three Six Zero Entertainment, a new full-service management company that will focus on representing actors, directors and writers in the film, television and digital industries. The company will be offering branding and financial services to clients as well.

Three Six Zero Entertainment has named David Unger, previously of Resolution before becoming a free agent, to lead the new company alongside Three Six Zero CEO Mark Gillespie. The pair will act as co-CEOs.

"We will now expand to meet the need for international talent in the areas of film and television," said Unger in a statement. Added Gillespie: "The phenomenal growth and cross-over from international territories and ancillary businesses has transformed the way we service our clients globally. It is a natural fit for us to partner with David."

"Mark and Dean and the Three Six Zero family have achieved tremendous success in music and now Three Six Zero Entertainment will expand their potential in film and television," said Roc Nation CEO and co-founder Jay Brown.

The launch is Jay Z's major move into the wider entertainment world following the success of Roc Nation and the still-nascent Roc Nation Sports. The choice to use Three Six Zero's name was due in part to the association of Roc Nation with the music industry, a source close to the deal tells Billboard, as Three Six Zero is seen as relatively neutral territory. Jay Z will bring, alongside Jay Brown, his considerable leverage in the music world to bear on Hollywood. Much the same for Three Six Zero, whose client Calvin Harris has been the face of Armani as well as featured (as an "evil DJ") in a prominent cameo in the forthcomingEntourage film.

The announcement comes just a few weeks after Jay Z's accepted bid for Aspiro and its subsidiary streaming companies, WiMP and Tidal. The ambition fo Shawn Carter seems to know no bounds -- and so far, it's served him quite well.

DJ Khaled Sues Former Record Label

DJ Khaled, via his DJ Khaled Productions, Inc., has filed a lawsuit against his former record label Entertainment One, also known as eOne, alleging breach of contract, accounting and unjust enrichment. 

Khaled is accusing eOne of failure to properly account and pay record and mechanical royalties, alleging lost royalties amounting to at least $1 million across four records released between 2006 and 2010.  

In the initial lawsuit summons, filed in May, Khaled's council accuses eOne -- and the Koch Entertainment label that it purchased in 2005 and absorbed in 2009 -- of failing to accurately account for royalties owed, as well as incorrectly characterizing and reporting the products it sold or licensed, and refusing to permit an audit of their accounting to determine exact losses. 

Over the time in question, Khaled released the four full-length studio albums 2006's Listennn...the Album, 2007's We the Best, 2008's We Global and 2010'sVictory, as well as DJ Khaled / E Class: Live from the 305 in 2009 (which is in dispute as eOne claims that album was released under a seperate deal with another entity than Khaled). Throughout those releases,

Over the time in question, Khaled released four full-length studio albums: 2006's Listennn...the Album, 2007's We the Best, 2008's We Global and 2010's Victory, as well as DJ Khaled / E Class: Live from the 305 in 2009. (The latter of which is in dispute, as eOne claims that album was released under a separate deal with another entity called Poe Boy Music Group, and was not delivered by Khaled or through his contract with the label).

Throughout those releases, Khaled collaborated with notables Rick Ross,Pitbull, Kanye West, Lil Wayne, Ludacris and a long list of others, achieving Billboard chart dominance and RIAA certified Platinum status for singles "I'm So Hood" from We the Best and "All I Do Is Win" off Victory. 

However, in a motion filed by eOne on Wednesday, the international music, film and television distribution and publishing company claims it is exempt from the bulk of claims Khaled alleges. Most notably, it states it did in fact release the accounting in question, referencing its contract with Khaled and a clause limiting Khaled's audit rights over the preceding two year period beginning upon delivery of the accounting statement, as well as a clause limiting the right to pursue litigation to one year after that "objection period." Under this clause, the scope of Khaled's suit would be "contractually barred from asserting the claims set forth in the complaint for the periods 2006 through 2010." 

As well, eOne states that Khaled's claim for failure to pay mechanical royalties is invalid, as those rights were assigned by Khaled to another entity in 2007, when Khaled's publishing royalties were placed under exclusive control by The Knotting Hill Music Group, which subsequently contracted with Universal Music Publishing Group, to whom eOne says it has been reporting to since that time.

As well, eOne claims it allowed an audit of its accounting records in April 2014 for the appropriate review period per their contract, but Khaled's accountant did not show up. 

This article was first posted By Colin Stutz | September 26, 2014 11:08 PM EDT

Apple Doesn't Want to Compete -- It Wants to Own the Record Business

You didn't have to look too far to spot the action at Clive Davis' pre-Grammy gala on Feb. 7. Ground zero was table 108, where Apple CEO Tim Cook, senior vp Internet software and services Eddy Cue, iTunes vp Robert Kondrk and Beats co-founder and title-less Apple executive Jimmy Iovine were seated alongside former U.S. Vice President Al Gore and former House speaker Nancy Pelosi. 

After a shout-out from the party's host (Davis called Cook a "special human"), music execs lined up single file for an audience with the Apple contingent -- not to mention selfies and overshares about their first Macs.

Cue and Kondrk happily obliged, posing with Universal Music Group chairman/CEO Lucian Grainge and Glassnote founder Daniel Glass, and asking greeters if they already had "met with Jimmy." Goodfellas vibe aside, it was a legitimate business question, since Iovine has devoted recent weeks to meeting face-to-face with senior execs from major labels and the major indies. A nondisclosure agreement preceded every sit-down, but details are emerging about the nature of the talks, which point to a possible spring/certain summer launch of a new music service -- a crucial time for the company as it struggles to adapt from downloads to streaming.

Apple would not comment on its plans (the Cupertino, Calif.-based company bought Beats Electronics for $3 billion in May 2014) for what is believed to be an all-you-can-eat music service with a modest subscription fee. The price being debated: $7.99 per month, down from Beats' now-standard -- and arguably too high -- $9.99 a month, with no "freemium" model. (The sweet spot for consumers, at which profit is maximized for the labels: $3.99 to $4.99, say experts.)

But a source familiar with the talks says the tech giant, which reported first-quarter revenue of $74.6 billion on Jan. 27, has its sights set on more than just streaming. Apple's presence in the music business, says the insider, "is to be the music business; it's not to compete with Spotify." The proof is in the 800 million credit cards it already has on file -- comparably, Spotify has 15 million subscriptions and 60 million monthly users, although the service is growing, headed to an initial public offering.

In fact, integration has begun. Apple TV features a Beats logo, an update to Apple's iOS will include streaming and creative is in the works for new ads starring artists recruited by Iovine. But that may be the extent of Beats' involvement as Kondrk takes the lead on music. Like the Apple-centric design of its offices, the look and feel of Beats is likely to mirror Apple's aesthetic, not the other way around.

Other clues suggest a major scrub to the iTunes store, which will rid itself of thousands of titles including soundalikes and certain covers, all at Apple's discretion, say insiders. Moreover, the disallowed music includes artist rerecordings, favoring original or best-of versions and, critics contend, the major labels that retain those rights. Additionally, featured-artist sliders, previously chosen editorially, may now be determined by sales velocity, leaving some to wonder if iTunes is becoming less like a Tower Records and more of a Target -- limited selection and a focus on hit titles. "Until now, iTunes has been good to the indies," contends one vet. Conversely, an Apple source says such case-by-case house-cleaning to eliminate duplicative and deceptive versions is routine.

Another criticism likely to crop up (besides the botched U2 release): While Apple won the download market, streaming will be a tougher slog. One obvious reason? Owners of Apple products can use Pandora, Spotify or Rhapsody -- they're not locked into iTunes. All the unknowns notwithstanding, Apple, Beats and the music business coming together is ultimately "a game-changer," offers attorney Doug Davis of The Davis Firm, whose title also includes executive producer of dad Clive's gala. "They have the ecosystem, the barriers to market aren't there; it's a flip of a switch and everybody can pay with a click. Their streaming service will see a seamless integration that's cross-platform and convenient, as Spotify has become. As a fan of all-you-can-eat, the industry in general is excited to have more market players."

This article first appeared in the Feb. 21 issue of Billboard.

Lil Wayne vs. Cash Money: 21-Page Lawsuit

Many were flabbergasted to find out just how much Lil Wayne was suing Cash Money Records for: $51 million dollars.

But it's true. On Thursday, Jan. 29, a 21-page lawsuit surfaced on to the Internet. Within the lines of the documents, it breaks down the record contract between Cash Money and Lil Wayne, amendments, and what is owed, and why.

As TMZ reported, Lil Wayne is owed $10 million, solely for the recording and completion of Tha Carter V: "Cash Money agreed to pay Carter an advance of Ten Million Dollars ($10,000,000.00) per solo album, with Eight Million Dollars ($8,0000,000.00) to be paid upon the commencement of the recording of each solo album and the remaining Two Million Dollars ($2,000,000.00) to be paid upon deliver of such album to Cash Money."

Also, "Cash Money has failed to properly account and pay royalties and profits to Young Money LLC. While Cash Money needed Weezy and Young Money's approval for marketing expenses greater than $300,000.00, they did not do so, and Cash Money "claims millions of dollars in marketing expenses for the Young Money Label."

En Vogue Sued for Millions After Label Flip

Rufftown Entertainment is suing two original members of En Vogue for over $300 million, claiming the R&B group violated an exclusive recording contract by signing with another label after recent comeback efforts fizzled. 

The suit, filed Wednesday in Los Angeles Superior Court, alleges breach of contract, negligence, interference and fraud.

Rufftown owner René Moore says that he paid Cindy Herron, Terry Ellis and then-member Maxine Jones approximately $190,000 in 2010 in a deal that was to include two albums and touring. The advance included $40,000, plus travel costs, and $150,000 in studio fees.

After the comeback stalled, Jones was replaced in 2012 and they later signed with Pyramid Records. The plaintiffs allege that in July 2014 the current members of En Vogue conspired to sign the new contract with Pyramid, in violation of the terms of the exclusive pact with Moore and Rufftown. Fraudulent and illegal documents were used to promulgate the contract, according to the filing.

The lawsuit lists En Vogue Enterprises, Herron, Ellis, new member Rhonda Bennett, lawyer Allen Jacobi and Pyramid among the defendants. Jones is spared from the suit because she has "substantially performed her obligation under the agreement" except for elements that are impossible because of the "conduct of En Vogue."

Moore is seeking more than $310 million in damages. TMZ first reported on the breach of contract lawsuit.

Jones and another original member of the group, Dawn Robinson, briefly formed a new En Vogue in 2012 before a judge ruled that Heron and Ellis owned exclusive rights to the name. Since then Robinson joined the reality show R&B Divas: L.A. and Jones has embarked on a solo career, though legal problems forced her to file for bankruptcy in 2014.

Formed in 1989 in Oakland, the group scored a number of hits in the 1990s including "My Lovin' (You're Never Gonna Get It)," "Free Your Mind" and "Whatta Man."