Ryan Kavanaugh

Ryan Kavanaugh (born 1974 or 1975[1]) is an American businessman, film producer, and film financier. He is the founder and former CEO of Relativity Media and founder and principal of Proxima Media.

Ryan Kavanaugh
Kavanaugh in 2013
Born
Ryan Kavanaugh

1974 or 1975 (age 46–47)
Los Angeles, California, U.S.
OccupationBusinessman, film financier, film producer
Known forFounder of Relativity Media
Spouse(s)
Britta Lazenga
​
​
(m. 2011, divorced)​

Jessica Roffey
​
(m. 2015)​

Early life

Kavanaugh was born to a Jewish family[2][3] in Los Angeles, California, where he was raised in the Brentwood neighborhood and attended Brentwood High School. His mother is a real estate broker and his father a dentist turned businessman, born in Germany. His father changed his surname to "Kavanaugh" before his son's birth.[1][4] After attending UCLA, Kavanaugh founded a small short-lived venture capital firm.[4]

Career

Relativity Media
Further information: Relativity Media

Kavanaugh founded Relativity Media in 2004 after briefly serving as a consultant to other small businesses and venture capitalists.[5] At Relativity Media, he created a monte carlo model designed to predict the odds of a given film being successful based on certain variables.[5] Investment banks and industry executives have cast doubt on the model's efficacy.[4] Although Kavanaugh frequently cited the model's accuracy rate to be 85%, a source close to Elliott Management, one of the company's lenders, estimated it to be much lower.[6]

In 2012, Kavanaugh brokered a deal in which billionaire Ron Burkle would partner with Relativity Media and invest $800 million in the company.[7] As its chairman and the largest shareholder, Kavanaugh retains control of the company and the majority of its board of directors.[8]

Following Relativity Media's first bankruptcy filing in 2015,[9] RKA Film Financing, then one of its lenders, sued the company for misspending its marketing funds and called Kavanaugh a "con man". Relativity Media countersued for $200 million.[10] The initial suit was dismissed with prejudice.[11] Relativity Media's operations and reorganization remained under the supervision of bankruptcy court until March 2016.[12] Kavanaugh eventually stepped down as CEO at the end of 2016 but continued to hold majority equity of Relativity.[13]

In May 2018, Relativity Media filed for bankruptcy again and arranged to sell all of its assets.[14] The U.S. Trustee's office expressed disapproval at the bankruptcy filing, saying it appeared "designed to benefit Kavanaugh and lender UltraV Holdings at the expense of other creditors" and advocated for a robust investigation since "[Relativity Media] have apparently been unable to pay even the administrative claims owed under the confirmed (bankruptcy) plan of 2016." The U.S. trustee's office filing also uncovered the $2.6 million Kavanaugh paid himself at Relativity Media between April and November 2016 while the company remained delinquent on payments arranged for the resolution of the first bankruptcy. The trustee's office additionally expressed concern that Relativity Media's 2018 bankruptcy filing and sale to UltraV Holdings might be an "arm's length transaction" as Kavanaugh continued to have inappropriate access to computer systems, email, bank accounts, and servers at Relativity Media after the bankruptcy filing stated Kavanaugh had already left the company.[13]

In 2018, hedge fund investor Carey Metz filed an amended lawsuit stating that Kavanaugh defrauded him by conning him into making a $10 million investment in Relativity Media in 2013. Also, in 2015, while the company neared bankruptcy, Metz alleged that Kavanaugh duped him into making another $2.5 million investment. New York bankruptcy judge Michael Wiles dismissed aspects of Metz's initial complaint alleging a breach in unjust enrichment and oral contract after declaring that Metz's claims were barred by a release that accompanied Relativity Media's 2016 reorganization plan.[15][16]

In June 2018, an arbitration case found that Relativity Media executives, including Kavanaugh, had fabricated a memo accusing Relativity's former co-president of sexual harassment. A forensic audit of Relativity Media found the memo had been last altered by a user named "kav kav".[17] A Los Angeles arbitration judge awarded the maligned former co-president Adam Fields $8.5 million in damages for the fictional sexual harassment accusations and found that Ryan Kavanaugh must have been one of the parties who authored the memo.[18]

Films produced
See also: List of Relativity Media films

Kavanaugh was denied the producing credit of the film The Fighter since the Academy of Motion Picture Arts and Sciences only allows three producers to be officially credited.[19][20] Despite creating and using an algorithm likened to a moneyball approach,[21] Kavanaugh turned down a chance to invest in the movie Moneyball, citing his model's prediction that sports movies are often commercial failures.[22]

Other ventures

In 2017, Kavanaugh founded investment firm Proxima Media with Bobby Sarnevesht as an executive level partner.[23] In 2019, Proxima Media, acquired a majority stake in the video-sharing platform Triller, coinciding with the Trump administration's announcement that it intended to ban its more popular Chinese competitor TikTok in the US.[24]

In May 2019, Kavanaugh announced that Proxima Media would be creating its own cryptocurrency, Proxicoin.[25] The coin operates on the Ethereum blockchain and is designed to allow fractional ownership of entertainment assets including film, television, and music content.[26] Holders of Proxicoin were also slated to be partial owners of his new trading platform Entertainment Stock X (ESX).[27]

After attempting to acquire the Hollywood Stock Exchange (HSX) in 2019, Kavanaugh set out to create a similar trading exchange and tapped Elon Spar, who formerly worked for Cantor Fitzgerald, the owner of HSX, to help him in the venture.[28] The two formed Entertainment Stock X (ESX). In June 2019, Spar, who had been ESX's CEO, submitted a lawsuit against Kavanaugh for fraud, claiming that he was misled into believing that Kavanaugh's company, Proxima Media, had the necessary capital for ESX. Spar's suit alleged that Kavanaugh was essentially running a ponzi scheme; Kavanaugh was countersuing Spar, alleging that Spar was breaching his contract with ESX. Kavanaugh and Spar reached an agreement and withdrew their lawsuits.[29][28][30]

In 2020, Kavanaugh's company Triller launched Triller Fight Club LLC which produces entertainment fights combined with musical performances.[31] Kavanaugh, Triller and others were named in a lawsuit alleging unauthorized and unlawful use of a patented symbol in Triller's marketing for their Fight Club.[32][33]

Philanthropy

In 2010, the Board of Governors at Cedars-Sinai Medical Center awarded Kavanaugh its Hollywood Humanitarian Award.[34] In 2011, he received the Anti-Defamation League's Entertainment Industry Award.[35] In 2013, Kavanaugh became a part owner of FreeHand, a dog food brand that donates to local animal rescue organizations.[34]

Personal life

Kavanaugh currently resides in Malibu, California. In 2011, he married ballet dancer Britta Lazenga.[36] In 2015, Kavanaugh married model Jessica Roffey.[37] He is a member of the Wilshire Boulevard Temple.[38] He practices Transcendental Meditation twice a day.[39]

In 2006, Kavanaugh was arrested after driving under the influence of alcohol (DUI) and being involved in a hit-and-run. All but the DUI charge (which was lessened to a wet and reckless charge) were dropped. Kavanaugh was ordered to pay a $1,404 fine, take counseling and alcohol education programs, and was placed on 36 months probation during which he was required to drive with a 0.0 BAC.[4][40][41]

In 2008, Kavanaugh was arrested for speeding and drunk driving with a suspended license while on probation for his earlier DUI arrest. Kavanaugh plead guilty to violating his probation and the other charges were dropped. He now uses a driver.[4][42][6]

Awards and honors

Kavanaugh was named by Variety as 2011's "Showman of the Year",[1] placed 22nd on the Fortune 40 Under 40 list in 2012,[43] and appeared on its Future 400: Ones To Watch list.[44] In 2013, he was featured in a Forbes list of youngest billionaires.[24][45]

References
  1. Garrahan, Matthew (July 22, 2011). "Ryan Kavanaugh, would-be king of tinseltown". Financial Times. Archived from the original on August 21, 2018. Retrieved March 18, 2014.
  2. Berrin, Danielle (October 12, 2011). "A fundraising feast for Relativity's Ryan Kavanaugh at ADL's annual entertainment dinner". Jewish Journal. Archived from the original on June 24, 2018. Retrieved March 18, 2014.
  3. "Jewish is the new red". Variety. October 15, 2011. Archived from the original on November 21, 2018. Retrieved March 18, 2014. I always get the question — Ryan Kavanaugh, red hair — but I'm here once again to assure you I'm Jewish on both sides ... until my mom admits she had an affair with the milkman or the mailman I will stay Jewish on both sides.
  4. Digiacomo, Frank (February 9, 2010). "The Theory of Relativity". Vanity Fair. Archived from the original on January 17, 2021. Retrieved March 18, 2014.
  5. Magdevsk, Sonja. "Ryan Kavanaugh: The Fall and Rise". Malibu Magazine. Archived from the original on January 30, 2009. Retrieved July 29, 2012.
  6. Benjamin Wallace (January 24, 2016). "The Epic Fail of Hollywood's Hottest Algorithm". Vulture. Retrieved November 24, 2021.
  7. Bond, Paul (January 23, 2012). "Ron Burkle Closes Multiple Investments in Relativity Media". The Hollywood Reporter. Archived from the original on December 4, 2020. Retrieved July 29, 2012.
  8. Block, Alex Ben (October 1, 2012). "Ryan Kavanaugh Lawyer Threatens New Yorker Over 'Egregious' Ron Burkle profile (exclusive)". The Hollywood Reporter. Archived from the original on July 24, 2018. Retrieved November 29, 2012.
  9. Patten, Dominic; Fleming, Mike, Jr. (July 30, 2015). "Ryan Kavanaugh's Relativity Media Finally Files Chapter 11 Bankruptcy". Deadline Hollywood. Archived from the original on October 19, 2021. Retrieved August 7, 2015.
  10. Faughnder, Ryan; Fleming, Charles (July 30, 2015). "The mini-mogul behind Relativity Media said he'd change Hollywood, now studio files bankruptcy". Los Angeles Times. Archived from the original on June 27, 2021. Retrieved November 24, 2021.
  11. Cullins, Ashley (March 8, 2018). "Ryan Kavanaugh Beats $110M Film Finance Fraud Suit". The Hollywood Reporter. Archived from the original on November 27, 2021. Retrieved November 27, 2021.
  12. Lieberman, David; Busch, Anita (March 18, 2016). "Relativity Media & Ryan Kavanaugh: A Walk Down Memory Lane Of Hype". Deadline Hollywood. Archived from the original on December 6, 2021. Retrieved December 13, 2021.
  13. Maddaus, Gene (July 6, 2018). "Ex-Relativity CEO Ryan Kavanaugh Paid Himself $2.6 Million as Company Struggled". Variety. Archived from the original on July 11, 2021. Retrieved November 28, 2018.
  14. Williams, Trey (May 3, 2018). "Relativity Media Files for Chapter 11 Again After Racking Up $500 Million-Plus Debt in 2 Years". TheWrap. Archived from the original on December 13, 2021. Retrieved December 13, 2021.
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  17. Lopez, Ricardo (June 4, 2018). "Relativity Media Fabricated Memo Containing Claims of Sexual Harassment by Former Co-President Adam Fields". Variety. Archived from the original on November 22, 2021. Retrieved August 24, 2021.
  18. Donnelly, Matt (June 4, 2018). "Relativity Fabricated Sexual Harassment Accusations Against Former Executive, Judge Says". TheWrap. Archived from the original on November 17, 2021. Retrieved November 28, 2021.
  19. Fernandez, Sofia M. (January 15, 2011). "Ryan Kavanaugh Loses AMPAS Appeal for 'Fighter' Producer Credit". The Hollywood Reporter. Archived from the original on November 23, 2021. Retrieved July 29, 2012.
  20. Sperling, Nicole (January 13, 2011). "Ryan Kavanaugh denied producing credit on 'The Fighter'". Los Angeles Times. ISSN 0458-3035. Archived from the original on September 21, 2015. Retrieved November 15, 2017.
  21. Fischer, Russ (November 25, 2011). "Producer Ryan Kavanaugh Brings Moneyball Tactics to Filmmaking". /Film. Archived from the original on December 12, 2021. Retrieved December 12, 2021.
  22. Jones, Chris (February 7, 2012). "Wrench in the machine". ESPN. Archived from the original on October 15, 2021. Retrieved July 29, 2012.
  23. "Proxima Media LLC". Bloomberg. Retrieved December 14, 2021.
  24. Cohan, William D. (October 15, 2020). "Trump, Triller, and the return of Ryan Kavanaugh". Fast Company. Archived from the original on November 1, 2020. Retrieved November 23, 2021.
  25. "Ryan Kavanaugh Launches Proxicoin to Widen the Film Investment Audience". Medium. May 28, 2019. Archived from the original on December 14, 2021. Retrieved December 14, 2021.
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  31. Chan, Tim (November 27, 2021). "Triller Fight Club Triad Combat: How to Watch the Fight (and Metallica Concert) Online". Rolling Stone. Archived from the original on November 28, 2021. Retrieved December 15, 2021.
  32. "Triller lawsuit launched over "Triad-Combat" triangle-shaped ring". World Boxing News. November 20, 2021. Archived from the original on November 20, 2021. Retrieved November 24, 2021.
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  36. Turner, Lauren (July 18, 2011). "Leo, Bradley, Gerard, and More Celebrate Producer Ryan Kavanaugh's Capri Wedding!". PopSugar. Archived from the original on January 25, 2011. Retrieved July 30, 2012.
  37. "Inside Hollywood Mogul Ryan Kavanaugh's Star-Studded Wedding to Model Jessica Roffey". People. March 2015. Archived from the original on March 15, 2015. Retrieved March 18, 2015.
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  39. Siegel, Tatiana (May 13, 2011). "Life of Ryan". Variety. Archived from the original on November 27, 2020. Retrieved January 21, 2019.
  40. Michael Cieply (June 2, 2008). "Financier in Hollywood Strikes Deal in D.W.I.". The New York Times. Archived from the original on November 24, 2021. Retrieved November 24, 2021.
  41. Michael Cieply (May 5, 2008). "Catch and Release? Yes, Says Moneyman". The New York Times. Archived from the original on January 6, 2018. Retrieved November 24, 2021.
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