Lebron and Gloria James were supposed to have dinner after game three. Jay-Z and Beyonce showed up at the game, and after Lebron's big performance, they all went out on the town leaving Gloria at the team hotel. Delonte West doesn't go out partying with the team because of his pending legal troubles (a DUI or public intox or drunken dissorderly would look really bad). Delonte and Gloria went and had dinner at the hotel, had drinks with dinner, and continued drinking at the bar into the night. Drunk they went back to Gloria's room and bumped uglies.
Lebron returned to the hotel around 3:30 in the morning and knocked on his mom's door with some left-overs and to check if she was alright. Delonte opened the door in a towel.
Not only did James see this, so to did Gibson, O'Neal, and Williams. Immediately the news spread to the team and the locker room because very tense and uncomfortable.
James was pissed about both the Delonte incident and the way his teammates "disrespected" him by letting the story outside of the family, and basically told them that if they wanted to win, they were on their own to win.
After game 5, James realized that dogging it would hurt his image this summer and that Wade might overshadow his star, especially as Chicago was clamoring for Wade and the Knicks have eyes for Bosh. So he tried, but the team chemistry had been lost and his individual performance was simply not enough to overcome Boston.
James blamed the Cavs for the situation occuring. Had the West situation been handled when his arrest occurred, or if the Cavs hadn't balked at the Phoenix deal at the deadline (which included West), then Delonte wouldn't have been there to defile Gloria*.
Now he wants control or he wants out, and Gilbert is left wondering whether he should turn the whole franchise over to a 25 year old powder-keg who quit on his team, or if he should continue with GM of the year Danny Ferry and rebuild in the image of the Spurs.