People like Kareem Abdul Jabbar and Magic Johnson changed the game by demanding what they were worth from their NBA franchises. Years later, Michael Jordan took it a step further by stepping into those iconic Nike shoes and becoming synonymous with the American Dream. The next successful step in that line of ascension would come from four-time NBA champion, LeBron James.
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While James would not become an iconic logo, like his predecessor in this case, he would become a household name, courtesy of his business acumen. 23 years into the NBA this October, he has been the face of everything, from shoes to clothes to cars to fast food chains. He is quite literally… everywhere.
Consequently, the 40-year-old is now worth approximately $1.2 billion, becoming only the second basketball player to reach billionaire status after Jordan.
In an ESPN documentary from back in the day when he was just making his mark in the NBA, the Lakers star admitted that even at 18, he had a sense of his business potential and wasn’t as green as people might have assumed.
“Business-wise, I know what I am doing now, and I am not going to let anybody push me over. I just need to keep getting smarter because I really don’t know everything now. But in a couple of years, maybe 4-5 years down the line, I would know a lot,” the 18-year-old LeBron had asserted.
Already a standout at the St. Vincent–St. Mary High School, LeBron had won three Ohio State Championships before turning 18. The hype around him was so unreal that ESPN was broadcasting his games as an amateur player. He soon signed with the Cleveland Cavaliers and put the NBA and the rest of the basketball world on notice, both on and off the court.
“I am bringing out everything from clothes to watches, sunglasses, the whole nine … basketballs, bags, gym bags. I am bringing out everything,” he said at the time, noting that he was doing most of these things for children.
It was a very smart decision too, something athletes have tried to copy since. Children outgrow things quickly, so parents have to keep buying.
And by making kids his primary demographic, LeBron ensured that his stature as a role model was extremely profitable. But it wasn’t as easy as it sounds.
While companies were more than happy to stamp his brand on their products, LeBron was calculated and patient in his dealings to ensure he maximized what he was getting out of them.
LeBron turned down $115 million from Reebok at 18
That’s right, the Lakers star turned down the footwear giant in 2003 for all that money to sign an $87 million deal with Nike. At the time, everybody and their mother probably thought it was a crazy move. After all, he could have made much more ($28 million more, to be exact) with Reebok.
But Nike came with prestige, and it had a great track record, having already made Michael Jordan a global brand. So, LeBron was rather smart to hedge his bets on them.
It paid more than steady dividends, and 19 years later, James signed a lifetime deal with the company for reportedly $1 billion, earning about $32 million every year from the shoe brand.
LeBron was right in 2003 when he said he might not know everything yet, but he would in a few years. Well, you can add clairvoyance to his list of skills because boy, was he right on the money about everything!
