Business
LeBron Inc.: The collective that's bigger than basketball
LeBron James at Crypto.com Arena in L.A. on Feb. 9, 2023.
(Allen Berezovsky / Getty Images)
Back in November, a few days after Thanksgiving, LeBron James had left Los Angeles for a visit to his hometown of Akron, Ohio, in part to show a group of reporters around his childhood home.
Well, a replica of his childhood home.
“Go ahead,” he said, nodding toward a green door, an exhibit at the new LeBron James Home Court museum made to look like the entrance to Apartment 602. “Look around.”
Inside, the walls were covered in taped-up posters, 1990s teenager style. There was Shaquille O’Neal rushing toward the basket. Earvin “Magic” Johnson angling for a layup. Kobe Bryant floating in for a dunk.
Discover the change-makers who are shaping every cultural corner of Los Angeles. This week we bring you The Connectors, who understand that power doesn’t travel in a straight line and know how to connect the dots. Come back each Sunday for another installment.
In many ways, these men — these legendary Lakers who long ago hung up the purple and gold — remain more synonymous with Los Angeles than James, who still wears the uniform. But if this bothers the 39-year-old, who is playing some of the best basketball of his 21-year career, it doesn’t show much.
Indeed, while fans and pundits have been busying themselves with speculation about the depths of his team loyalty and his future, James has been busy building an economic empire tying himself more fully to Los Angeles. And unlike in Ohio, where he’s mostly known as a one-man savior of civic life, opening not just a museum, but a transformative school, a housing complex and a community center, what he’s doing in Southern California is a team effort.
Think of it as a collective. Or maybe a solar system.
In the middle of LeBron Inc. there’s James — the global star and the center of gravity. And then there are his brothers from different mothers, the three men most associated with James, who’ve spent decades shining in his orbit, always aligned in one way or another.
There’s Rich Paul, who founded the powerful Beverly Hills-based talent agency Klutch Sports Group and hired James as his first client not long after they met by chance in an airport in 2001 and struck up a conversation about a vintage football jersey.
Maverick Carter, who met James when they were both in grade school, was the first to move to L.A. and is chief executive of the TV and film studio they co-founded, the SpringHill Co.
And Randy Mims, who also has been friends with James since they were kids and today is his chief of staff.
Mentioned less often, but also very much in the mix are Fara Leff, the chief operating officer of Klutch Sports Group, and Adam Mendelsohn, James’ media advisor, and Paul Wachter, founder and chief executive of Main Street Advisors.
Global star LeBron James, center, has tapped a core group of friends and family to build an economic empire rooted in Los Angeles. On the left, from top to bottom, are Bronny James, Adam Mendelsohn, Paul Wachter and Rich Paul. On the right, from top, are Randy Mims, Fara Leff, Maverick Carter and Savannah James.
(Zipeng Zhu / For The Times)
Even James’ son, Bronny James, is a star in his own right, declaring for the NBA draft after a year playing basketball at USC, while his wife, Savannah James, is an entrepreneur and investor who has started building a very-L.A. empire of her own.
The influence of James and his collective on Los Angeles — particularly the parts of it that revolve around media and entertainment — is palpable.
Klutch, for example, is one of the top agencies in the world, growing from just four clients in 2012 to more than 400 today, including the NBA’s Anthony Davis and Trae Young, and the NFL’s Jalen Hurts and Odell Beckham Jr. In 2019, Klutch agreed to a pivotal partnership with United Talent Agency that has given its clients even more avenues into Hollywood, including in film, television and podcasting.
Leff, who was around in the early days of Klutch, said she and Paul wanted to “break the mold of what the typical agent-to-player relationship was. You know, you signed a contract and then you see them at your next contract. Ours was how do we grow young men, professional athletes, professional businessmen, fathers and sons.”
These are themes that Paul echoed in his memoir, “Lucky Me,” with a foreword written by James.
“Rich helped me find my strength in that chaos, a chaos that he knew all too well. Rich never asked me for anything. He didn’t care whether I was a future pro or the kid across the street. He just knew I needed his help, and he gave me what I needed most — the space to be vulnerable,” James wrote.
Meanwhile, the SpringHill Co. — named after the building in Akron that housed James’ real Apartment 602 — has released a long list of acclaimed shows, movies and documentaries, including “What’s My Name: Muhammad Ali,” HBO’s “The Shop,” “Self Made: Inspired by the Life of Madam C.J. Walker” and, of course, “Space Jam: A New Legacy.”
Sports is no longer just sports. It’s culture, it’s business, it’s music and more — all ripe for investment.
In addition, the company over the years has brought in new investors, including RedBird Capital, Nike, Fenway Sports Group and Epic Games, to fund an international expansion. And it has inked deals with Netflix, ABC Studios and Universal Studios, further solidifying a place in the Hollywood firmament.
What’s often forgotten is that James and Carter, in many ways, pioneered the idea of a working professional athlete becoming part of the media ecosystem. Not just being covered by journalists and subject to outside narratives, but running a media company and creating a narrative of one’s own.
This has become common. Think Kevin Durant’s Thirty Five Ventures or Naomi Osaka’s Hana Kuma. And that’s because sports is no longer just sports. It’s culture, it’s business, it’s music and more — all ripe for investment.
“The world has changed a lot in the last 20 years,” said Wachter, who has long managed James’ investments, from Cannondale bikes to Lobos 1707 tequila to Beats by Dre. “Now athletes are much more tuned into business, but that was just very unusual.”
In fact, Wachter uses the word “unusual” a lot when he talks about how James, Carter, Paul and Mims became so powerful. He was one of their first contacts in Los Angeles in 2005, when the LeBron Inc. collective was still based in Akron and nearby Cleveland, where James played for the Cavaliers.
“They were kids. I was not a kid,” Wachter said. “I was just amazed that they had, at that age, taken the trouble — and it wasn’t their mom or their dad or their sister, their cousin — to find someone who clearly wasn’t from their world and … to do research to say, who might be good for us.”
They hired him. And Wachter and his then-teenage daughter took LeBron and Savannah James house hunting.
“And here we are almost 20 years later,” Wachter said. “He came here and he’s made his home here.”
Or homes. James and his family are building their dream home from the ground up on what had been the site of their $37-million mansion in Beverly Hills.
“He chose to be here. He didn’t get traded,” Wachter said. “You basically took what was basically a Cleveland operation. Now, it’s an L.A. operation.”
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How We Cover the White House Correspondents’ Dinner
Times Insider explains who we are and what we do, and delivers behind-the-scenes insights into how our journalism comes together.
Politicians in Washington and the reporters who cover them have an often adversarial relationship.
But on the last Saturday in April, they gather for an irreverent celebration of press freedom and the First Amendment at the Washington Hilton Hotel: The White House Correspondents’ Association dinner.
Hosted by the association, an organization that helps ensure access for media outlets covering the presidency, the dinner attracts Hollywood stars; politicians from both parties; and representatives of more than 100 networks, newspapers, magazines and wire services.
While The Times will have two reporters in the ballroom covering the event, the company no longer buys seats at the party, said Richard W. Stevenson, the Washington bureau chief. The decision goes back almost two decades; the last dinner The Times attended as an organization was in 2007.
“We made a judgment back then that the event had become too celebrity-focused and was undercutting our need to demonstrate to readers that we always seek to maintain a proper distance from the people we cover, many of whom attend as guests,” he said.
It’s a decision, he added, that “we have stuck by through both Republican and Democratic administrations, although we support the work of the White House Correspondents’ Association.”
Susan Wessling, The Times’s Standards editor, said the policy is a product of the organization’s desire to maintain editorial independence.
“We don’t want to leave readers with any questions about our independence and credibility by seeming to be overly friendly with people whose words and actions we need to report on,” she said.
The celebrity mentalist Oz Pearlman is headlining the evening, in lieu of the usual comedy set by the likes of Stephen Colbert and Hasan Minhaj, but all eyes will be on President Trump, who will make his first appearance at the dinner as president.
Mr. Trump has boycotted the event since 2011, when he was the butt of punchlines delivered by President Barack Obama and the talk show host Seth Meyers mocking his hair, his reality TV show and his preoccupation with the “birther” movement.
Last month, though, Mr. Trump, who has a contentious relationship with the media, announced his intention to attend this year’s dinner, where he will speak to a room full of the same reporters he often derides as “enemies of the people.”
Times reporters will be there to document the highs, the lows and the reactions in the room. A reporter for the Styles desk has also been assigned to cover the robust roster of after-parties around Washington.
Some off-duty reporters from The Times will also be present at this late-night circuit, though everyone remains cognizant of their roles, said Patrick Healy, The Times’s assistant managing editor for Standards and Trust.
“If they’re reporting, there’s a notebook or recorder out as usual,” he said. “If they’re not, they’re pros who know they’re always identifiable as Times journalists.”
For most of The Times’s reporters and editors, though, the evening will be experienced from home.
“The rest of us will be able to follow the coverage,” Mr. Stevenson said, “without having to don our tuxes or gowns.”
Business
MrBeast company sued over claims of sexual harassment, firing a new mom
A former female staffer who worked for Beast Industries, the media venture behind the popular YouTube channel MrBeast, is suing the company, alleging she was sexually harassed and fired shortly after she returned from maternity leave.
The employee, Lorrayne Mavromatis, a Brazilian-born social media professional, alleges in a lawsuit she was subjected to sexual harassment by the company’s management and demoted after she complained about her treatment. She said she was urged to join a conference call while in labor and expected to work during her maternity leave in violation of the Family and Medical Leave Act, according to the federal complaint filed Wednesday in the U.S. District Court for the Eastern District of North Carolina.
“This clout-chasing complaint is built on deliberate misrepresentations and categorically false statements, and we have the receipts to prove it. There is extensive evidence — including Slack and WhatsApp messages, company documents, and witness testimony — that unequivocally refutes her claims. We will not submit to opportunistic lawyers looking to manufacture a payday from us,” Gaude Paez, a Beast Industries spokesperson, said in a statement.
Jimmy Donaldson, 27, began MrBeast as a teen gaming channel that soon exploded into a media company worth an estimated $5 billion, with 500 employees and 450 million subscribers who watch its games, stunts and giveaways.
Mavromatis, who was hired in 2022 as its head of Instagram, described a pervasive climate of discrimination and harassment, according to the lawsuit.
In her complaint, she alleges the company’s former CEO James Warren made her meet him at his home for one-on-one meetings while he commented on her looks and dismissed her complaints about a male client’s unwanted advances, telling her “she should be honored that the client was hitting on her.”
When Mavromatis asked Warren why MrBeast, Donaldson, would not work with her, she was told that “she is a beautiful woman and her appearance had a certain sexual effect on Jimmy,” and, “Let’s just say that when you’re around and he goes to the restroom, he’s not actually using the restroom.”
Paez refuted the claim.
“That’s ridiculous. This is an allegation fabricated for the sole purpose of sparking headlines,” Paez said.
Mavromatis said she endured a slate of other indignities such as being told by Donaldson that she “would only participate in her video shoot if she brought him a beer.”
“In this male-centric workplace, Plaintiff, one of the few women in a high-level role, was excluded from otherwise all-male meetings, demeaned in front of colleagues, harassed, and suffered from males be given preferential treatment in employment decisions,” states the complaint.
When Mavromatis raised a question during a staff meeting with her team, she said a male colleague told her to “shut up” or “stop talking.”
At MrBeast headquarters in Greenville, N.C., she said male executives mocked female contestants participating in BeastGames, “who complained they did not have access to feminine hygiene products and clean underwear while participating in the show.”
In November 2023, Mavromatis formally complained about “the sexually inappropriate encounters and harassment, and demeaning and hostile work environment she and other female employees had been living and experiencing working at MrBeast,” to the company’s then head of human resources, Sue Parisher, who is also Donaldson’s mother, according to the suit.
In her complaint, Mavromatis said Beast Industries did not have a method or process for employees to report such issues either anonymously or to a third party, rather employees were expected to follow the company’s handbook, “How to Succeed In MrBeast Production.”
In it, employees were instructed that, “It’s okay for the boys to be childish,” “if talent wants to draw a dick on the white board in the video or do something stupid, let them” and “No does not mean no,” according to the complaint.
Mavromatis alleges that she was demoted and then fired.
Paez said that Mavromatis’s role was eliminated as part of a reorganization of an underperforming group within Beast Industries and that she was made aware of this.
Business
Heidi O’Neill, Formerly of Nike, Will Be New Lululemon’s New CEO
Lululemon, the yoga pants and athletic clothing company, has hired a former executive from a rival, Nike, as its new chief executive.
Heidi O’Neill, who spent more than 25 years at Nike, will take the reins and join Lululemon’s board of directors on Sept. 8, the company announced on Wednesday.
The leadership change is happening during a tumultuous time for Lululemon, which had grown to $11 billion in revenue by persuading shoppers to ditch their jeans and slacks for stretchy leggings. But lately, sales have declined in North America amid intense competition and shifting fashion trends, with consumers favoring looser styles rather than the form-fitting silhouettes for which Lululemon is best known.
“As I step into the C.E.O. role in September, my job will be to build on that foundation — to accelerate product breakthroughs, deepen the brand’s cultural relevance, and unlock growth in markets around the world,” Ms. O’Neill, 61, said in a statement.
Lululemon, based in Vancouver, British Columbia, has also been entangled in a corporate power struggle over the company’s future. Its billionaire founder, Chip Wilson, has feuded with the board, nominated independent directors and criticized executives.
Lululemon’s previous chief executive, Calvin McDonald, stepped down at the end of January as pressure mounted from Mr. Wilson and some investors. One activist investor, Elliott Investment Management, had pushed its own chief executive candidate, who was not selected.
The interim co-chiefs, Meghan Frank and André Maestrini, will lead the company until Ms. O’Neill’s arrival, when they are expected to return to other senior roles. The pair had outlined a plan to revive sales at Lululemon, promising to invest in stores, save more money and speed up product development.
“We start the year with a real plan, with real strategies,” Mr. Maestrini said in an interview this year. “We make sure decisions are made fast.”
Lululemon said last month that it would add Chip Bergh, the former chief executive of Levi Strauss, to its board to replace David Mussafer, the chairman of the private equity firm Advent International, whom Mr. Wilson had sought to remove.
Ms. O’Neill climbed the organizational chart at Nike for decades, working across divisions including consumer sports, product innovation and brand marketing, and was most recently its president of consumer, product and brand. She left Nike last year amid a shake-up of senior management that led to the elimination of her role.
Analysts said Ms. O’Neill would be expected to find ways to energize Lululemon’s business and reset the company’s culture in order to improve performance.
“O’Neill is her own person who will come with an agenda of change,” said Neil Saunders, the managing director of GlobalData, a data analytics and consulting company. “The task ahead is a significant one, but it can be undertaken from a position of relative stability.”
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