Relativity Media was founded by Ryan Kavanaugh and Lynwood Spinks in 2004. Kavanaugh convinced Spinks, a former Carolco Pictures executive[12] to invest $1 million into the venture.[13] Relativity began operations as a middleman brokering deals between film studios and banks,[14] private equity firms, and hedge funds to finance multi-film slates.[15] In 2005, the funding needs of Hollywood studios became more critical when a German tax shelter that had supported them for 25 years[16] was eliminated,[12] and Relativity Media met that need with Wall Street\'s plentiful funds in the early 2000s.[13] Relativity arranged financing for slates produced by Warner Bros., Universal Pictures, and Sony Pictures.[13] For each film, Relativity received equity and brokerage fees of $500,000[13] to $1 million,[15] and Kavanaugh arranged an executive producer credit for himself.[12] In 2007, Kavanaugh sued Spinks after the partners had a falling out.[14] In 2008, Elliott Management bought 49.5% of Relativity Media for $67 million[12] and provided access to about $1 billion in capital and a revolving credit line.[14] The increased funds allowed Relativity to expand involvement with film production companies. In 2009, Relativity reached an output deal with Lionsgate,[17] and bought Rogue Pictures from Universal Studios for $150 million.[18] In 2010, a deal with Netflix allowed Relativity Media-owned films to be streamed on the platform,[19][20][21] and Relativity purchased Overture Films\' distribution and marketing operations.[22][23] Elliott Management\'s funding eventually allowed Relativity Media to begin operating its own studio, producing and distributing its own films.[24] The studio distributed its first film on December 3, 2010.[citation needed] In 2011, Elliott Management pulled its financial backing from Relativity amid reports of tension between the companies.[25] In May 2011, Relativity\'s president Michael Joe moved to Elliott Associates to manage their investment in Relativity[26] after Elliott had invested hundreds of millions of dollars with very little in return.[27] Kavanaugh had structured a slate deal between Elliott and Universal titled \"Beverly 2\" that comprised the majority of Elliott\'s investment in Relativity at the time, but the investment turned out poorly for Elliott and further enormous losses were forecasted. Relativity was also scheduling their own movies opposite Universal\'s, including competing Snow White adaptations,[28] which Universal executives saw as Relativity using \"Beverly 2\" funds to gain a competitive advantage. Elliott put pressure on Kavanaugh to hand Beverly 2 over to Elliott in exchange for releasing Michael Joe from his non-compete.[29] Two weeks before the opening of Relativity\'s first big-budget epic Immortals, Elliott reportedly threatened to further reduce its investment unless Kavanaugh made significant concessions when Relativity was already short on funds.[13] Relativity took out a $200 million loan from Ron Burkle, who had other entertainment investments including with Bob and Harvey Weinstein through his associated firm Colbeck Capital. The loan was taken in part to cover the multi-million dollar marketing costs for Immortals.[30] In January 2012, as Relativity continued to struggle financially, Kavanaugh sought a new major investor, and Burkle , and his invested between $600 million and $800 million[31] and became a shareholder.[32] In May 2012, Relativity announced that Colbeck structured $350 million in debt financing for the company and created a new board of directors including Burkle, two Colbeck bankers, and Kavanaugh. Elliott had reportedly departed from its investment in Relativity.[13] In May 2012, it was reported that Relativity and EuropaCorp signed a co-production and co-financing deal on two movies and Relativity would distribute in the U.S.[33][34] Relativity also has co-production deals with Atlas Entertainment including Project.[17] On June 12, 2012, Relativity Media and Rogue sold 30 of their films to Manchester Library Company,[35] which was acquired by Vine Alternative Investments in April 2017.[36] In July 2012, Relativity merged its Rogue Sports, a Maximum Sports Management basketball agency, a football agency, and SFX Baseball into Relativity Sports.[37] Relativity Sports represented more than 400 clients including Amar\'e Stoudemire.[38] In 2013, hedge fund investor Carey Metz made a $10 million investment in Relativity Media based on what he later described as Ryan Kavanaugh\'s lies.[39] In April 2013, Relativity partnered with Glenn Kalison to create a film and performing arts school called Relativity School.[40] Most of the studio\'s movies performed poorly at the box office.[41][12] The movie slate financing Relativity Media brokered for Wall Street investors also faired poorly for equity holders.[12]