Exploring LeBron’s Business Ventures

I’ll be sharing a few thoughts on the book LeBron, Inc.: The Making of a Billion-Dollar Athlete by Brian Windhorst. This book primarily discusses not only LeBron James’s basketball career but also the business ventures surrounding him, including offshoot industries and companies that have thrived due to LeBron’s influence.

LeBron’s Path to Business Success

LeBron James may be the first billion-dollar athlete, or at least NBA player. As you hear descriptions of LeBron James, you realize he’s not just an outlier in his athletic abilities but also in his personal qualities. Like most NBA players, he was tall as a young person, but unlike many of them, he was able to add muscle at an extreme rate while still young. He is also noted for his mental acuity; he can predict plays and knows information about members of other teams that most people would not even care to learn. Early in the book, it’s evident that many of these traits have likely contributed to his success as one of the greatest basketball players of all time.

LeBron and his business partners progressed from selling and marketing to gaining equity, leveraging his fame and popularity.

Micro-Fame and Business Equity

I wonder, with social media and varying levels of popularity and fame, if there are opportunities for average people with small but substantial followings to leverage their micro-fame to gain equity in businesses, online or locally.

The Nike Deal and Beyond

Perhaps the most significant business deal for LeBron James was signing with Nike. I believe he signed this lifetime contract either as a high school player or just after high school. The deal was for around $100 million, and it made headlines at the time. It’s not just about the amount of money involved; LeBron was approached by several different shoe companies before ultimately choosing Nike.

Choosing Nike Over Reebok

Even though Nike was a large brand back then, it wasn’t as big as it is today. Other shoe companies like Reebok and Adidas also had leverage at the time. In fact, Reebok offered LeBron James a substantial sum of money. Given LeBron’s humble beginnings—raised by a single mother with limited financial resources—the decision to turn down millions of dollars from Reebok was unconventional in the business world. Ultimately, he secured a better deal with Nike in the long run.

Long-Term Business Strategy

One key thought LeBron James had when making this decision was focusing on the long term. Instead of seeking all the money upfront, he aimed to generate ongoing revenue from the deal. This strategy proved to be a smart move, especially considering Reebok’s eventual acquisition by Adidas. This pivotal moment in LeBron’s business career set the stage for future deals.

Unconventional Business Partnerships

LeBron’s business partners are individuals he has collaborated with over the years, including his close friend Maverick. They are unconventional business partners who have played crucial roles in his success.

LeBron didn’t have any formal degrees, but over the years, he has built a successful empire. You can see him and his team going through the learning process as they progress. I think Paul Rich, is associated with LeBron on the athletic side.

In recent years, especially within the past year, there has been controversy surrounding him. Being a young black man making business deals in the sports world without formal training or coming through the established system, like the NBA, has led to attempts to change rules to exclude people like him. Some accuse these actions of having a tinge of racism behind them. Nonetheless, LeBron has unconventional business partners who have performed very well for him.

Prioritizing Equity and Authenticity

Regarding LeBron’s business approach, he prioritizes equity in his deals. He looks for business opportunities where he can hold equity rather than simply being a paid spokesperson. This approach values more than just receiving a big check—it involves being the face of a brand or representing it in meaningful ways.

He also seeks business deals that are authentic to him. LeBron doesn’t want to promote or be involved in businesses that he doesn’t believe in. While this might seem like a common concept, it can be challenging to maintain when you have millions of dollars at stake. It’s easy to overlook certain things if they don’t align with your morals and principles.

For example, one of his early business deals with Nike involved a bike company. During the offseason, LeBron enjoys biking to stay in shape without stressing his knees and legs. This presented an opportunity for a business partnership where he could earn a percentage of equity in the company. Over time, this decision proved to be successful, showcasing LeBron’s commitment to aligning his business ventures with his personal interests.

This is just one instance of LeBron pursuing business opportunities that reflect who he truly is, rather than simply chasing deals for monetary gain. Beyond this, industries and businesses around him, like basketball camps, capitalize on his influence and popularity.

Profit from Influence

There was a story about a guy who filmed footage of LeBron James and his high school team. He developed a film based on that footage, which was eventually sold to a film company. This venture proved profitable for him, and I believe LeBron James eventually became involved in it as well. This is just one example of how people have been able to profit from LeBron’s name and presence, even if he wasn’t directly involved in the initial money-making venture.

Original draft written in November 2019