Justin Bieber’s $31 million settlement with Scooter Braun’s former company is on hold, now that the singer is reportedly leaning on the billion-dollar beauty empire built by his wife, Hailey Bieber.
Sources close to the situation confirm that Justin will not be paying his debt until the funds from Hailey’s recent deal with e.l.f. Beauty, which acquired her Rhode skincare brand, are securely in the bank, as reported by TMZ.
The sale, valued at approximately $1 billion, is expected to close in the next month or two, according to the publication. And while the Rhode deal is a huge personal milestone for Hailey, a rep for her made it clear. “The historic sale of Rhode is a huge accomplishment for Hailey and is completely separate from her husband and his business affairs.”
Still, insiders acknowledge that Justin is relying on the proceeds of the sale. He’s an investor in Rhode, and his reported $50 million cut from the sale would more than cover the $31.5 million he owes to HYBE, the South Korean entertainment company that absorbed Braun’s operations.
© Axelle/Bauer-GriffinBack in May, an independent audit revealed that Justin was in the red for tens of millions, primarily from the abrupt cancellation of his 2022 Justice world tour due to his Ramsay Hunt syndrome diagnosis, which caused facial paralysis.
© Getty Images for The Met Museum/HYBE paid AEG $26 million to cover the costs associated with the scrapped tour. In addition, Justin owed over $11 million in unpaid commissions to Scooter, despite Braun waiving $8 million of that.
As part of their settlement, Justin agreed to pay HYBE the full $26 million and half of the remaining commission debt, totaling approximately $31.5 million.
© BKNY/Bauer-GriffinWhile Braun facilitated the bailout, sources emphasize that none of the repayment will go to him personally. Scooter has since exited HYBE and will not see a dollar from the settlement.
© Kevin MazurJustin sold his music catalog for $200 million just 18 months ago. However, it was reported that after taxes, payouts to managers, lawyers, and extravagant spending, the leftover cash from the catalog sale was not enough to meet this latest obligation.
“He spends eye-watering amounts per month. At one point, he couldn’t even get a credit card,” an insider told Page Six. “He’ll spend $300,000 at the Nobu at Coachella. He hasn’t worked in a really long time.”
© GC ImagesDespite the rumors about financial mismanagement, a rep for the singer told Page Six, “Any source that is trying to sell you a story about alleged financial distress … either doesn’t understand the entertainment industry or, more likely, is trying to paint an unflattering portrait of Justin, which bears no resemblance to reality.”
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