LeBron James

Annie Moosavian
OGrady
Economics

12/11/2014
I believe LeBron James would start on any NBA team today. (www.jockbio.com)
LeBron James is known around the world for his basketball talent and celebrity status, but little
people look deeper into his finances and how much he makes from his multiple deals and
contracts. In this paper, there is in depth information on not only LeBrons economics, but also
his income and economics.
LeBron James was born on December 30, 1984 in Akron, Ohio. His mother was Gloria
James, and his father was Anthony McCelland. Lebrons biological father, McCelland was an
ex-con and uninterested in being a parent which left Gloria to raise LeBron on her own. She had
him when she was only sixteen. From an early teen, LeBron showed tremendous instincts and
talent in multiple sports, basketball being his favorite and best. By the time he got to high school
he was recruited by St. Vincent-St. Mary high school to join their basketball team in 1999, which
was LeBrons freshman year when he was fifteen years old. He helped his high school team win
a Division III state title by scoring 25 points in the championship game, along with many other
successes. Because of his talent and success in high school he was able to skip college and be
drafted straight into the NBA. The Cleveland Cavaliers drafted LeBron in the 2003 NBA draft
when he was nineteen years old and he played his first seven seasons of his profession career in
Cleveland. During the 2003-2004 season, he became the first member of the Cavalier franchise
and the youngest player (at age 20) to win the Rookie of the Year award. Around the time that he
first joined the Cavs team, he also signed his first endorsement deal with Nike for $90 million
dollars. (Bibliography.com)

At this point in LeBrons career he was known as the hometown boy and the city of
Cleveland became a part of him. The people of Cleveland saw his as theirs and felt a compassion
for his success, and always thought he would stay in his hometown. This is why when LeBron
made the Decision to join the Miami Heat there was shock and backlash. (cnbc.com)
In July of 2010, LeBron announced he was leaving Cleveland to plat for The Miami
Heat. He joined two other very successful basketball players in the NBA, Dwayne Wade and
Chris Bosh. The three of them became the new face of the Miami heat and people couldnt wait
to see what the three of them could do on and off court. On the court, they were able to win two
NBA championships in 2012 and 2013. And off the court they were able to increase ticket prices
of the Miami Heat games by 33.7 percent (www.ESPN.com) and LeBron was bringing in a
salary of 53 million. The three of them were seen as celebrities in the sports world. This new
venture in Miami allowed LeBron to gain a bigger fan base not just with people in Ohio.
(espn.com)
Now for the negative effect LeBrons
Decision had on Cleveland. While the Heats ticket
sales were increasing, the Cleveland Cavs ticket sales
dropped 22.6 percent. This goes to show how
LeBron play a huge role in the popularity of the team
he is playing on. This chart to the right shows a
www.google.com

visual of how the Heats ticket sales went up and the Cavs went down. (cnbc.com)
Fortunately, In July of 2014 LeBron left the Heat and signed a two year contract with the
Cleveland Cavs for 42.2 million (22.2 million per year). His will have a huge effect on the

Cleveland economy. Im coming home is the famous saying for LeBrons return to Cleveland.
And thats exactly what he was doing when he signed back to the Cavs, he was coming home to
his city and his fans that had been there with him since high school. He said Im not driven by
Championships, Im driven by my hometown, by Northeast, Ohio. (Jockbio.com)
The greatest player on the planet could be an economic catalyst for the rust belt city
this was a quote talking about LeBrons return to Cleveland, and it could not be more accurate.
LeBrons return is expected to net local businesses about .5% of the citys annual GDP or more.
He is also said to bring $500 million to the local economy. This 500 million can be broken down
and shows that $195 million of the 500 million will be from the playoff games, $114 from
regional spending, $57 million from local spending, and $129 from additional ticket revenue.
This can all be summed up as the LeBron Effect, a common expression used to describe his
tremendous effect on Cleveland. Finally, his return is said to create 550 jobs, totally $38 million
in salary paid out, because of the spending by Cavs fans at and around the arena. And hotels bar
restaurants and shop in Cleveland are said to make a total of $171 million on non-ticket-related
economic activity generated by James. (cnbc.com)
Not only does LeBron make millions on his basketball contracts, but even more of his
wealth comes from his endorsements. His biggest being with Nike, but he also works with Bear
by Dr. Dre, McDonalds, Samsung, and Kia. He is said to make 42 million a year in endorsements
alone, and 20 million just from Nike. Research has shown that LeBron makes more in
endorsements alone then the top 10 MLB players combined. The top 10 MLB players are said to
make $30 million combined. This also shows the popularity of the sport of basketball and how
LeBron is so much more than a basketball player, he is a celebrity figure and huge in the
endorsement and advertisement world, because who doesnt like LeBron? (cnbc.com)

One of LeBrons biggest supporter, lifelong friend, and manager is Maverick Carter. He
is LeBrons business partner and high school friend. His net worth is said to be 15 million. This
comes from his work with LeBron but also because he is the Founder and CEO of LBMR
(Management Company) which was established in 2006. Together the two have had great
success. With Carters management skills, and LeBrons basketball talent they work together to
become a success. (www.LBRM.com)
Outside of basketball and endorsement deals LeBron is very giving. He started a
foundation called The LeBron James family Foundation. And the mission of the foundation is to
positively affect the lives of children and young adults through education and co-curricular
educational initiatives. They believe that an education and living an active, healthy lifestyle is
pivotal to the development of children and young adults. The foundations mainly support and
donates to, St. Vincent-St. Mary High School, Wheels for Education, Akron I Promise
Foundation, The LeBron Advisory Board, and the Boys and Girls Club. (LeBron James Family
Foundation.com)
One branch of LeBrons foundation is his business of selling his I Promise Bands They
are five dollar wrist bands that come in all different colors and simply say I promise on them.
And the idea is that the bands are supposed to remind you where will your promise take you.
(www.bibliography.com)
LeBron says, I am just a part of the Nike Family This is certainly true, he has been an
endorser for Nike ever since he entered the NBA when he was 19 and to this day works with
them. His most notable sales with Nike include his tennis shoe line and clothing line. In 2003 he
designed his first pair of Nikes basketball shoes, ever since he has come out with a new design

each year. The shoes today run around $200 a pair. His Nike line also includes things like
clothing, hats, and socks. LeBron signed a seven-year, $93 million contract with the company in
May 2003 and has been with them ever since. LeBron makes over 10 million a year just on the
shoes deal alone. (www.cardboardconnection.com)
Overall LeBron is a huge success both on and off of the court. He has had much success
with his basketball teams, and success with his endorsements and ad. This success has made him
the wealthy entrepreneur, athlete and celebrity he is today.

Works Cited
"LeBron James Biography." Jock Bio. N.p., n.d. Web.
<https%3A%2F%2Fptop.only.wip.la%3A443%2Fhttp%2Fwww.jockbio.com%2FBios%2FJames%2FJames_bio.html>.
"LeBron James Quotes." Brainy Quotes. N.p., n.d. Web.
<https%3A%2F%2Fptop.only.wip.la%3A443%2Fhttp%2Fwww.brainyquote.com%2Fquotes%2Fauthors%2Fl%2Flebron_james
.html>.
"LeBron James Signs New Deal With Nike." CNBC. N.p., n.d. Web.
<https%3A%2F%2Fptop.only.wip.la%3A443%2Fhttp%2Fwww.cnbc.com%2Fid%2F36120334%23.>.