LeBron James’ SpringHill lost nearly $30 million last year amid Hollywood woes

Omokolade Ajayi -
Key Points
  • LeBron James’ SpringHill Company posted $30 million in losses for 2023 and is expected to remain unprofitable in 2024 despite high sales.
  • Despite SpringHill's struggles, James' personal net worth has above $1 billion, with discrepancies between Bloomberg and Forbes' estimates.
  • SpringHill is merging with Fulwell 73 to navigate industry challenges and expand globally, with $40 million in new funding from investors.

LeBron James' SpringHill Company, a Hollywood production firm he co-founded with Maverick Carter, reported nearly $30 million in financial losses for 2023 and is expected to remain unprofitable in 2024, according to internal documents reviewed by Bloomberg News.

This comes despite James' personal net worth soaring past the $1 billion mark this year, fueled in part by a two-year, $104 million contract with the Los Angeles Lakers.

Wealth estimates for James vary significantly. Bloomberg values his fortune at $1.5 billion, while Forbes offers a more conservative estimate of $1.2 billion, resulting in a $300 million discrepancy between the two assessments.

The struggles of SpringHill, LeBron James' flagship venture into Hollywood, stand in stark contrast to his historic achievement as the NBA's first active billionaire, underscoring the divergent paths of his personal finances and business pursuits in the entertainment industry.

Recurring losses despite high sales

SpringHill has struggled to achieve profitability since its inception. The company posted a $28 million loss on $104 million in revenue in 2023, following a $17 million deficit in 2022.

The firm’s financial challenges reflect broader market headwinds as the entertainment industry grapples with rising costs, tighter budgets, and an oversaturated production landscape.

“The entertainment market shift in 2022/2023 toward profitability brought rising costs, slower buyer decisions, and impacts from industry strikes, prompting us to recalibrate, including writing off underperforming projects to position ourselves for future growth,” Maverick Carter, SpringHill’s CEO, stated in an email.

SpringHill merges with Fulwell 73 amid industry challenges

SpringHill, once valued at $300 million during the streaming boom, is navigating a sharp industry contraction.

Streaming giants are scaling back on content spending, triggering layoffs and impacting smaller firms like SpringHill, which grew to 200 employees but now faces declining valuations.

In November, SpringHill announced plans to merge with Fulwell 73, a London-based production house best known for producing “The Kardashians” and the Grammy Awards.

The deal, expected to close by the end of 2024, aims to create a stronger entity capable of weathering the industry's downturn.

As part of the merger, SpringHill’s investors—Nike Inc., Epic Games Inc., and Fenway Sports Group—will inject an additional $40 million into the business.

Maverick Carter will serve as co-CEO alongside Fulwell’s Leo Pearlman in the newly formed entity.

The merger is seen as a move to consolidate resources and leverage Fulwell’s expertise in unscripted programming and live events to complement SpringHill’s focus on scripted content.

SpringHill eyes growth despite challenges, boosts global push

SpringHill is optimistic about surpassing financial projections this year, despite hurdles in achieving sustained profitability.

Its merger with Fulwell 73 is part of a broader strategy to drive growth in a volatile entertainment market.

To expand globally, the company partnered with European media giant Mediawan, which holds stakes in Plan B Entertainment.

The deal aims to co-develop and produce original content, strengthening SpringHill’s presence in Europe while giving Mediawan greater access to U.S. markets.