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When The Buffalo Examiner spoke of Lebron James, they fittingly announced him as King James, The chosen one. Lebron James has successfully turned an organization around where so many gave them little attention; simply put, James IS the Cleveland Cavalier franchise. With endorsement deals from Nike, Sprite, Bubblicious, Upper Deck, McDonald’s and State Farm and his own management company, his potential as a mogul and empire seem limitless. His 90 million dollar Nike Deal is probably his most important. Signing on with the company straight out high school, Nike has aimed to have him be the next Michael Jordan of the Company. However, his appeal has not been as popular in comparison to the legend. It has taken nearly six years for Nike to produce merchandise that compares to Jordan. Many argue that no one may ever reach the goal of signing a $10 million dollar shoe deal. It seems that the only way that James will be able to increase his popularity and his profitability is by the thing that has eluded him the past couple of years: a championship ring. To his credit however, he has been able to dodge the somewhat negative press of his league counterparts and stay grounded.
Last year, Forbes Magazine estimated the 25-year-old made more than $40 million in salary and endorsements. He is currently ranked behind only Tiger Woods on the Bloomberg BusinessWeek list of America's most powerful athletes. Together with Maverick Carter, a childhood friend and business partner in Lebron Inc., James is trying to create a new financial model for the 21st-century athlete. Instead of just lining up endorsements, James is seeking equity in the companies he works with. James then, is thinking about his legacy, the image the brand that he will have long after he is finished with basketball. His goal: get to $1 billion dollars.
James founded LRMR Marketing in 2006, name for the initials of his four childhood friends and business partners, Lebron, Randy Mims, Maverick Carter, and Richard Paul. He also formed King James Inc., a holding company, to contract with endorsement partners, to lower his tax liability. Lebron Inc. also works with Allen & Co., the New York investment bank known for its advice to top media and entertainment moguls. Off the court, James plans on expanding his empire through movie and book deals, summer basketball camps, and charities. His movie/documentary, More than a Game, focuses on his high school career in Akron and his basketball camp, based in San Diego, aims to reach out to his youth audience. The Lebron James Family Foundation (LJFF), founded in 2004, empowers children and single-parent households through innovative programming and initiatives, strengthening the ties between family members and building hope through education, physical fitness and better. The foundation’s most important national program is the Playground Build Initiative, which focuses on developing family-centered safe play spaces. The LJFF has also partnered with Nickelodeon to encourage kids to be physically fit and environmentally aware. He also volunteers his time with the Ronald McDonald House as a deal with his McDonald’s endorsement deal.
So, how far has James come? As second on the list in earning potential behind a floundering Woods image, it seems that James has the potential to make ground. As he approaches free agency on July 1, all eyes are on the 6’8’’ forward. Will he be in Chicago? Cleveland? New York? Miami? It seems to me that based on his prior career involvement, James will make the decision that best benefits him career wise. He still has a very long way to go before he reaches the likes of Michael Jordan, who still capitalizes on his likeness through his Nike brand. He also has suffered recent attacks on his image, like his refusal to talk to media after tough losses and dunk made on him during a summer camp by Xavier University star Jordan Crawford. Even so, I believe that James is doing what so many young athletes fail to do, take control of their name as a business.
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