LeBron James was selected by the Cleveland Cavaliers as the first overall pick of the 2003 NBA draft. After leaving for the Miami Heat in 2010, LeBron returned 5 seasons later, in 2014. Upon making his return as an unrestricted free agent, King James signed a 3-year, $107 million contract. According to Brian Windhorst’s “LeBron James Inc.: Making of a Billion-Dollar Athlete,” the next 4 years saw a $160 million increase in revenue for the Cavaliers franchise.
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The franchise was valued at around $515 million, back in 2014, according to Statistica. The overall value rose to around $1 billion just a year later, following James’ return.
LeBron James increased Cleveland Cavaliers’ revenue by $160 million in 4 years
LeBron James’ hefty $105 million contract translated to a salary of average salary of around $35 million. While those are hefty figures, the Cavaliers made a clear profit by the return.
Over the next 4 years, the Cavaliers saw an increase of $160 million in their season revenue. This led to a huge increase in the total franchise valuation.
From $515 million in 2014, it reached a billion the next year. By the time LeBron’s 5 seasons were over, in 2018, this figure had reached around $1.325 billion.
The following year after his departure to the LA Lakers, the valuation again saw a huge decrease, dropping to $1275 million in 2018. LeBron’s global impact proved to be highly beneficial for the Cavaliers.
As a matter of fact, according to Statistica, the only two years when the Cavaliers’ overall valuation decreased in the past 2 decades are 2011, and 2019. Windhorst in his book wrote:
“Forbes estimated that the Cavs’ revenue grew by more than $40 million per season with James in the fold. That sort of increase in wealth might indeed have been worth a partnership down the line.”
LeBron James proved financially beneficial for his teams despite hefty NBA wages
Over the years, LeBron’s yearly salaries have seen a consistent increase. Currently, he is on a 2-year contract which sees his annual salary past the $42 million mark.
Still, James continues to prove financially beneficial simply due to the increased attention and revenue that his mere presence results in. LeBron is easily the most popular NBA player globally and has over 154 million followers on Instagram.
His overall net worth of $1 billion is down not merely to the various lucrative contracts he has signed. Instead, his business ventures over the years, a plethora of sponsorships, and simply the kind of social media presence he commands, all contribute to his overall net worth.
