LeBron James and Maverick Carter have been friends since they were kids. Their friendship culminated into a long-lasting business partnership that has paid off for both. But their profits are built upon strong business principles. They believe in investing in products that align with their ideas and provide the best services. The two once set up a foundation that aimed to donate bicycles to children so that they could avoid a sedentary lifestyle.
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In his 2019 book From LeBron James Inc: The Making of a Billion-Dollar Athlete, Brian Windhorst shared how their cycling foundation helped the business duo generate a ton of profit.
Windhorst explained how James’ cycling investments through his foundation opened pathways to associate with top-notch firms. The foundation held an annual ‘bikeathon’ which aimed to supply bicycles to children en masse for the event.
Initially, LeBron was seeking an association with large bicycle producer, Schwinn. However, his business advisor, Paul Wachter, had a better deal. Wachter had connections with a private equity firm called Pegasus Capital Advisors. This firm had acquired a bankrupt holding called Cannondale in 2003.
When the company started to recover its losses around 2007, it was up for sale. Watcher advised James and Carter to buy stakes in the company. However, LBJ didn’t invest in Cannondale until he researched them thoroughly. Once he was delighted by the holding’s work and vision, he invested in it. It was a win-win for both sides.
James’ immense fame enabled both Cannondale and Pegasus to fetch big returns, while his net worth also saw a significant uptick as the holding was sold to a Canadian conglomerate in 2008. It was such a huge deal that it was seen as the biggest turnaround for the year. In his book, Windhorst explained how Carter and James fetched humongous profits through their investment.
“A year later Cannondale was sold to a Canadian conglomerate. Pegasus reportedly nearly quadrupled its investment. Carter made six figures on his investment. LeBron made seven figures. Wachter got his cut and once again made everyone happy. A trade publication, Buyouts magazine, named Pegasus’s deal with Cannondale the “Turnaround of the Year.” The company sent Carter a trophy to celebrate the achievement”
However, James’ vision wasn’t limited to his personal profits. He wanted to have a positive impact on the children in Akron’s community. By donating bicycles, they not only gave kids an effective mode of transportation, but also led them to an active lifestyle.
As someone who loves biking, LBJ was able to utilize his hobby to make a difference, which has been typical of his business model. While he has acquired the status of a billionaire, he has also made sure that his hometown benefits from his growth.
