Written by:
Wade Senti

Sports Business: The King James Affect

Among the major sports leagues [NBA, NFL, MLB, NHL, PGA), nearly $16 billion is generated annually, realizing a sizable portion to the national GDP (Hoovers). These leagues are dominated by captivating figures including Tiger Woods, Kobe Bryant, Derek Jeter, Peyton Manning, and of course -- Lebron James.

These individuals are not only excellent athletic performers, but are to a greater extent an image – of franchises, cities, and a collective people, allowing stakeholders to capitalize on their marketability, creating value regionally, nationally, but also globally. It may surprise some that Kobe Bryant is the most marketable basketball player globally today. This marketability and popularity is largely due to championships.

While Kobe, with four NBA Championships under his belt, has continued to amass this continued presence as one of the greatest players of all-time, Lebron has yet to win a championship. In fact, the 2010 NBA Playoffs proved that maybe a change is in order – with the Boston Celtics winning 4 to 2 in the second round series.

This summer, one of the hottest free-agency periods since 1996, Lebron James will for the first time in his seven year career venture into the ranks of free-agency.

His talents both on and off the court will be at the will of the highest bidder, but also where he feels he can put himself in the best position to market himself globally with an NBA Championship. Speculation looms at every corner, some say he will remain in Cleveland, while others note that the New York Knicks or New Jersey (soon to be in NY) Nets could be potential destinations for ‘King James.’

Even with two league MVP’s, several failed title runs, and two regular season best records, Lebron is a money and marketing machine, with a salary of just under $16 million this season and endorsements in the hundreds of millions since entering the league in 2003.

His presence has and will inevitably have a profound effect on any region or city – especially an absence in Cleveland, a city plagued with underperforming sports teams and even further economic distress from the economic downturn (similar to much of the Midwest). As the summer begins to heat up so will free-agency and speculation. Lebron James is as coined by many, “a game-changer,” but without a championship his continued growth as a marketable superstar athlete may be in question.

Thanks to Flickr for the picture.