Story is simple.
Musclemeds contract with Kai was ending. Kai or his manager wanted a lot more money, since he was the reason Carnivore blew up in sales (his opinion). Musclemeds did not agree. Contract was not renewed. Kai get offered from founders of Blackstone Labs to make his own line.
Flex Magazine drops Kai and does not renew contract. Kai feels he is owed money on a contract that was not renewed from Flex. Kai still does not sign contract.
Rumors abounds that AMI, which owns Flex and the Olympia, do not want to give Kai a booth for his new supplement line at the Olympia. Kai demands free booth. Doesn't happen.
Kai doesn't sign contract. Chess game.
Phil Heath signed the contract in April. Kai could of done the same but didn't. Nothing but Kai stopped him from competing at the Olympia. Regardless of contract disputes, free booths, he could of sign and competed. He or his manager chose not too.