That's the oldest trick in the book.
You sign everybody to your label, then contractually, they can't release anything.
Then you release your flagship artist while the other 249 artists sit around twiddling their thumbs.
That's what 50 Cent did with G-Unit (Spider Loc, Olivia)
I'm pretty sure Puffy had some artists signed to his label that never came out.
I mean basically if I give you a check for $10k and you sign the contract, the flagship artist has less competition.
I bet Dr Dre signed every up and coming artist in L.A. to Aftermath to a $10k contract and none of them ever came out.