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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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How to Be Co-signed by Your Cohorts


LeBron, LeBron, LeBron.

LeBron James, NBA superstar, chose to go to the Miami Heat after a summer of deliberation. After Thursday’s announcement you either love him or hate him. The story will be buried and exhumed many times over, so I will not go into it. However, I will go into what I feel is a remarkable side story.

James, will be joining Dwayne Wade, an existing Miami Heat player, and Chris Bosh who recently signed with Miami from the Toronto Raptors. Unless you are fan of basketball, you may ask, “who is Chris Bosh?” And this is the remarkable side of the story.

Wade and James are known superstars, have been on the big screen, and have had the media hype to follow. This is Bosh’s first time in the limelight. Anyone who follows basketball knows that Chris Bosh is a solid player. But not until now has he really been considered a superstar. Which has been argued by some sports critics. Why is he at superstar status? Its because he has been co-signed. He has teamed up with two of the biggest brands in basketball. You can’t ask for better exposure.

This is the classic example of brand building by association. The examples of a brands being co-signed speak clearly:

Pontiac G6 - Oprah Giveaway
After this car was given away on the The Oprah Winfrey Show, within two weeks, Pontiac G6 awareness reached 87% among adults, while also achieving a 17% click-through rate (on the web), a Google record for the time. With a new product, your can’t ask for better exposure, after that the product has to sell itself. It was co-signed by Oprah.

Nike - Michael Jordan
Nike cut Michael Jordan a check for $500,000 for his endorsement in 1985. In 1984 Nike’s total revenue was about $900 million. By 1997, when Jordan was closing in on the fifth of his six NBA titles, it hit $9.19 billion. Case closed.

Regardless to whether brand association is orchestrated or organic, its hugely beneficial and is represented in the perceived value part of the brand value equation. Perceived value can be increased because of the association of another brand.

While Bosh is a solid player by himself, he has raised his brand equity tremendously by teaming up with cohorts of the maganitude of James and Wade. Whether they have created a dynasty by teaming together is yet to be seen. What is known is that Bosh has taken an opportunity to remove himself of the caves of Toronto and put himself in position to shine in South Beach.

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