SpringHill, a media firm co-founded by the player, records losses that approach the amount he received per season with the Lakers
SpringHill, a company co-founded by basketball player LeBron James, faced losses of US$45 million (about R$272 million) in the last 2 years. This amount is close to what James received per season playing for the Los Angeles Lakers before renewing his contract, becoming the highest paid athlete in the NBA. The information was released this Tuesday (03.dec.2024).
The company, which has not made a profit since its creation, recorded losses of US$28 million in sales last year and US$17 million in 2022. Another million-dollar loss is expected this year.
The entertainment industry faces challenges with the recent market correction, which has affected both independent producers and larger companies in the sector. The reduction in production and the review of streaming budgets are some of the causes. Maverick Carter, CEO of SpringHill and longtime friend of James, was optimistic.
“The 2022/2023 entertainment market’s shift toward profitability has brought rising costs, slower buyer decisions and impacts from industry strikes, leading us to recalibrate, including writing off underperforming projects to position ourselves for future growth ”he stated.
Recently, SpringHill announced a merger with Fulwell 73, a British producer known for work with the Kardashian clan and the Grammy Awards. The resulting new company will have 250 employees and aims to achieve profitability by the end of next year, following staff cuts. SpringHill investors have committed to injecting a further US$40 million into the business.
