NBA superstars earn an obscene amount of money in salaries and endorsement deals. However, the players topping the rich list and having the highest net worth, like LeBron James and Shaquille O’Neal, sit atop the food chain due to their unique approach toward their marketability. Both athletes’ mindset toward branding was fleshed out by their agents, Rich Paul and Leonard Armato.
Advertisement
During an appearance on the Million Dollaz Worth of Game podcast, James’ long-time agent, Paul, spoke about the evolution of the marketability of athletes. According to the 43-year-old, the game has changed from players selling their name and likeness to companies to now using it to build their own business.
He cited the examples of James, Stephen Curry, and Kevin Durant’s successful business ventures to drive home his point. Paul said,
“People talk about brands all the time. First of all… There’s no brand… There’s IPs (intellectual properties)… Ask the guys who’ve built a tremendous amount of value within their IP… LeBron for sure… Steph (Curry), KD (Kevin Durant). Just three names in basketball that I think have become businesses through the lens of the value they built through their IP.”
Paul explained that the average athlete is content with partnering with a business rather than becoming the business, which he believes is an error on their end.
Armato, Shaq’s former agent, shared a similar view. That’s why he persuaded the legendary center to ditch Nike’s offer in the 1990s. In an interview on the Grammys and Heismans talk show, he said,
“Michael Jordan was the ultimate pitch-man. I mean, you couldn’t beat him in terms of endorsing products… And so when I got with Shaq, I said, ‘Look, let’s figure out how you could own your own IP as opposed to having Nike own your IP.'”
Both James and O’Neal endorse several brands. However, they’ve also invested their money in a slew of companies, built their own businesses, and used their name and likeness to endorse them and add to their value.
James and O’Neal’s business ventures
LeBron owns two media companies with his childhood friend-turned-business-partner Maverick Carter. The duo founded Uninterrupted in 2014, which primarily produces social media content. In 2020, they launched SpringHill Entertainment, which focuses on films and TV shows.
James is also a part owner of the Fenway Sports Group, which owns the MLB’s Boston Red Sox and the Premier League’s Liverpool Football Club. The Lakers superstar was an early investor in Blaze Pizza and owns 19 outlets of the restaurant chain. He’s also the spokesperson for the brand.
On the other hand, Food chains are Shaq’s forte. He owns several outlets of Papa John’s, Five Guys, Auntie Anne’s, and Krispy Kreme. He also founded his own restaurant chain called Big Chicken in 2018, which expanded to 18 outlets across America in only five years. He has appeared in TV commercials and often posts promotional videos on social media for these brands.
James and O’Neal have little interest in signing endorsement deals. They only use their name and likeness to market to companies that are willing to give them equity. Their approach has helped them amass generational wealth, which continues to grow exponentially with each passing year.
