Rarely do I write about sport figures.
The evolving and now resolved circumstances swirling around basketball’s self-anointed “King,” LeBron James, are irresistible.
In the spirit of full disclosure, let me say up front, I am a lifelong Lakers fan. While others may vehemently differ, for my money, Kobe Bryant currently is the best player on the planet.
While his likeness may not yet be carved into the face of Mount Basketball, LeBron proved once and for all, it’s not about the game, it’s about the Benjamins. Like any red-blooded capitalist, James acted in his own self-interest.
On a visceral level, James could have remained in Cleveland. As an almost native son – LeBron was raised in Akron, nearly a mythic figure. In a town that recently has had little to cheer about, James was neon.
Even though James and his former mates on the Cavaliers had last year’s best regular season record, the King never brought a championship to Cleveland.
The Way It Used to Be
Despite the failure to bring home the ring, James has meant packed houses at Quicken Loans Arena. Every home game last season was sold out. On game nights, local bars and restaurants near the arena were jammed from the runners to the rafters.
Not since the days of legendary running back Jim Brown has one sports figure captivated Cleveland. By comparison to the steely-eyed Brown who let his numbers on the field do the talking, LeBron was downright effusive. After games, and even in the off-season, he granted interviews. He was a seemingly tireless booster for his adopted hometown.
But LeBron did what any good businessman would do. He acted in his own best interest.
Arguably, for a one-man media mogul like LeBron, New York should have been a no-brainer. As the nation’s No. 1 media market, the opportunities for LeBron should have been enticing. While New York may be a Yankee town, a LeBron-led championship for the Knicks would have pushed Derek Jeter off the throne, making him the new King of the Big Apple.
The risks of failure in New York’s always fickle media pressure cooker combined with the tax burden in the Empire state may have tipped the scales in favor of Miami. On the five-year $96 million contract offer he allegedly got from the Knicks, James would have paid $12.34 million in state income taxes. Unlike Ohio and New York, Florida has no state income tax.
Because of the so-called “Larry Bird Rule,” Cleveland could have, and probably did offer, James $100.2 million for five years. But under Ohio’s top rate of 5.925 percent along with Cleveland’s local 2 percent income tax rate, the basketball star would have been obligated to pay nearly 8 percent of his salary in government tithing.
Jordan Should Be His Goal
During his one-hour ESPN television event, LeBron said that his decision had less to do with money than with his own legacy. He said he chose Miami because by teaming with proven stars like Chris Bosh and Dwyane Wade, he believed that he had his best chance at securing the one thing that has eluded him – an NBA championship ring.
In truth, LeBron wants to be more like Mike.
It’s been more than a decade since Michael Jordan and his Chicago Bulls won their last championship. But he’s still a household name and media powerhouse.
More than being considered the greatest basketball player ever, Jordan has proved to be a marketing force of unmatched influence. Beyond his Air Jordans and other Nike TV commercials that propelled the sportswear brand into worldwide prominence, his golden touch is built in, and sustained WorldCom and Quaker Oats Co.'s thirst quencher Gatorade. Jordan even made tee-shirts cool again.
Until recently, Jordan’s media prowess has only been matched by the Tiger Woods. With five rings, Kobe may have nearly equaled Jordan’s six NBA titles. But the Jordan brand still reigns supreme.
Despite never having won a championship, LeBron has already earned hundreds of millions in endorsements. Reportedly, his ad earnings already eclipse Bryant’s.
At 31, after 14 years in the league, Bryant is on the backside of his career. Even if he matches Jordan by winning a sixth championship, most analysts believe that he has reached his earnings zenith.
James is only 25. Although he has been in the pro ranks for seven years, his best earnings are still in front of him. Jordan was in the league for seven years before he brought his first title to Chicago.
We may collectively weep for Cleveland and lament for the umpteenth time that basketball, like all other sports, has become nothing more than business. LeBron, however, was doing what any good capitalist would do. He followed the money.
I still take the Lakers in six over Miami in 2011. Sorry, LeBron. there are still some things money can’t buy. Heart is one of them.
John Cohn is a senior partner in the Globe West Financial Group based in West Los Angeles. He may be contacted at www.globewestfinancial.com
