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LeBron James: Personal Branding Case Study (Part I)

We are all witnesses.  This message has never rang more true then on July 8th at 9PM EST.  This moment will forever be etched in the history of basketball lore.  The decision, the debate, the letter (Dan Gilbert), and the statement (. . .taking my talents to South Beach).

LeBron has been a prodigy before he stepped on the world stage as a sophomore at St.Vincent – St. Mary’s High School in Arkon, Ohio.  As fans we could not get enough of ‘King James’ we purchased his jerseys, watched his games, wore his shoes and drank his water (Vitamin Water.)  We watched in amazement as he has grown from an 18-year old young man into a businessman with aspirations of being the first billion-dollar athlete.

Sports is a Business, Period.

Sports is a business, period.  It is a dog eat dog world.  I don’t see any NBA owners running to the aid of Antoine Walker who is in debt after earning over $110M and supporting 75-people.  Why because it is business?

Was LeBron wrong for ‘The Decision’?  The decision to leave, no he was a free agent.  The decision to blast his hometown on global TV, yes.  There was nothing good that could possibly come out of the event even if he raised $2.5M for charity.  Brand building is a very violate undertaking.  Every decision, every relationship, every move, every word can grow, jeopardize, and/or destroy everything you have ever worked your entire personal and professional life.

Historic Basketball Note: Michael Jordan was essentially forced out of Chicago after being loyal to the Bulls and delivering 6-NBA championships.  Michael Jordan was given the door by the Wizards once he stopped playing basketball.  How loyal should an athlete or an employee be to an employer?

Financial Impact of LeBron

For anyone who thinks the decision was not about finance is living under a rock. For LeBron it wasn’t about maximizing his earning potential with his NBA contract but let’s take a look at the numbers.

  • The City of Cleveland generated $3.7M per Cleveland Cavalier home game .
  • Cavaliers were 2nd in home attendance with near 100% capacity (2010-11).
  • Cavaliers team valuation in Forbes dropped from $476M to $390M.
  • Heat road attendance was 93% it will exceed 100% in 2010-11
  • He will save an estimated $25M in state taxes signing with Miami.
  • LeBron leaves $15M on the table (Sign & Trade)
  • Stock prices of the publicly traded Madison Square Garden dropped.
  • Each playoff game in NYC or New Jersey would deliver a $3.6M financial impact to the region.
  • ‘The Decision’ raises $2.5M for the Boys & Girls Club.
  • ‘The Decision’ was the third-most-watched program on cable television 2010 (9.95M watched).
  • Rating as a viable endorser only fell from 69.9% to 67.6% (This may change)
  • Jersey sells for LeBron is #2 behind Kobe.

LeBron’s Personal Brand – A Typical Millennial

LeBron is a typical Millennial and his behavior aligns with the characteristics of that demographic.

Characteristics of a Millennial (A few of the traits LeBron exhibited)

  • They are becoming empowered personal brands in the workplace and are impacting their employers and the way they communicate.
  • Blended work life that allows them to work when, how and where they want to.
  • They want to work with their friends.
  • They share their lives online (in this case TV)

What drove his decision?

What decision would have been best for LeBron depends on what was most important to him?

  • Basketball Legacy: The best move for basketball legacy would have been:  Cleveland or Chicago
  • Financial: New York.  Hugh media market and increased endorsement opportunities.
  • Championships: Miami or Chicago.  Miami provides that option while playing with his friends.
  • Personal Brand: Cleveland.  Great story hometown hero impacts the local economy economically.  If he would have won a championship his legacy would have locked.
  • Personal Satisfaction: Miami.  I believe he wanted to be happy and felt that playing in Miami with D.Wade was going to provide that.

What is the true impact?  It depends on the metrics you are measuring. Legacy, financial, strength of personal brand, value to marketers, and/or online sentiment. Financially I believe there will be little impact.  Unless there is a major character issue or another PR stunts like ‘The Decision’.  His contract with the Heat is guaranteed.  His major sponsors like Nike aren’t going anywhere.  (He probably won’t sell too many shoes in Cleveland.)

My Personal Opinion:  The strategy LeBron and his team used to communicate ‘The Decision’ was ill conceived and  over the top knowing he was leaving Cleveland. You don’t diss your hometown on TV.  LRMR and LeBron have a PR, social media and trust nightmare on their hands and whatever other word you want to use.  I also believed he should have personally called Dan Gilbert prior to the special.  Since LeBron didn’t return a call or text to Dan Gilbert since the season ended there is probably more to this story beneath the surface that we may never know.  At the end of the day it is business.

However, I commend LeBron for making a business decision not driven by emotions.  As a personal brand you need to do what is going to help you live the most fulfilled life, also understanding that you have to be able to live with the results of your decision.  At the end of the day the final chapter of his personal brand is not written I believe it is going to boil down to what he does on the court.  As we all know winning has a way of changing things.

Let me know your thoughts.

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You are a Business, Period.

I know that title is a little forward, but thats how convinced I am, that business and our personal lifestyles are largely parallel.

You are a business because everyone you are connected to expects you to yield something, in some form or fashion. Whether it’s your spouse or family with love and relationship or your boss and coworkers with on the job production and results –we are all created to produce.

The same goes for a business, its no different. A business is built to yield profits, yes, but businesses are not around to just yield profits. Although that is a large part of the end result.

My reason for this post is driven by an article I read in the February 2010 issue of Fast Company. In this issue was a great cover story with Steve Nash, point guard, for the NBA’s Phoenix Suns. The title of the article is, “Rules for Winning: How Creativity Can Beat Chaos in Basketball and Business.”

Great title, right? Its actually a good article. But here is my disagreement with Steve. He makes a point to say in the article, that these days “…professional athletes think of themselves as a brand, but thats not my way of thinking.”

Why? What’s wrong with thinking of yourself as a brand or a business? He brings in $13 Million a year from the Suns (not including endorsements and business ventures) and I am sure he employs people. That kind of sounds like a business to me. Isn’t he a brand? Would he establish these business ventures or opportunities if it had not been for his reputation (brand) on the court.

I am not going to beat Steve up in this post, he’s definitely entitled to look at things this way, but it made me look at a bigger picture on why he may feel this way. To some people being a personal brand and business is still a progressive way of thinking. Some may feel a brand represents ego or chest pounding, a “THIS IS WHO I AM” syndrome. I think its because with this media-crazed advertising world we live in, we have managed to de-humanize the concept of a brand. We tainted it with corporate scandal and sensationalized branding to the point the concept seems very plastic and unreal. Or the thought process of, “If you are a brand, you are trying get one over on me, or you selling me something I don’t want.” Well people this is not always true. Those realities are there and it is the very reason our large corporations who have failed to care for their customers in a very human way – are collapsing right before our eyes.

I like Steve’s approach to the game of basketball and I like his off court persona. He works hard and he is about his team receiving limelight, not just him. He goes out and play’s the game well, produces day in and day out, and in result excels in many of the categories respective to his position. Sounds like a good brand to me. What do you think?

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Personal Branding Interview: Hill Harper and Hajj E. Flemings – The Conversation

Hill Harper who most notably portrays Dr. Sheldon Hawkes on CSI: New York, he recently released his third book, “The Conversation” which is number two on the New York Best Seller list.  In his latest book he discusses the topic of conversations between men and women which has created a lot of buzz online.

Successful Brands Provide an Experience

One of the key characteristics of successful brands is that they provide customers with an experience.  I recently interviewed Hill Harper after a book signing in Royal Oak, MI.  Hill is a very grounded person with a magnetic personality, who makes every person in the room feel like they are the only one there.

After the book signing I saw how each person walked away with a personal experience after interacting with Mr. Harper, his command of the room is second to none.  I walked away thinking about the experience I provide those I interact with and what do they walk away with.  It was a moment of sobering reflection as I began to evaluate myself.

Hill Harper on Twitter

 

Hill is very active on Twitter, to follow him on the set of CSI: New York or to find out when he is coming to your town for a book signing or to extend the ‘”The Conversation” about his book follow him on Twitter at www.Twitter.com/HillHarper.

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