How LeBron James Has Earned $450M During His NBA Career

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Teams are lining up to woo LeBron James in hopes of inking the four-time MVP to a contract and
tilting the balance of power in the NBA. The Miami Heat and Cleveland Cavaliers appear to be the
early favorites, but James agent, Rich Paul, reportedly met with at least four other teams seeking
James signature, including the Dallas Mavericks, Houston Rockets, Los Angeles Lakers and
Phoenix Suns. Reports are swirling that James wants a maximum level salary next season, which is
projected to be about $20.7 million for an 11-year veteran like James. It will continue a tradition of
massive paydays for James, who banked $72.3 million in salary and endorsements over the last 12
months and $450 million during his career, by Forbes count. Here is how he did it.
James has earned $126 million in playing salary during his NBA career (he lost $3 million in salary
during the 2011 lockout), but his biggest checks have always come off the court from endorsement
deals. James signed a seven-year, $90 million pact with Nike before even being drafted by the
Cavaliers with the No. 1 overall pick in 2003. He added agreements with Coca-Cola, Cadbury
Schweppes/Bubblicious, Juice Batteries and Upper Deck as a rookie. James first year salary with
the Cavs was $4 million, but he generated more than four times that amount from sponsors (see
table below).

King James is going to get paid no matter what team he ends up on.
James continued to be an endorsement darling, as he led the Cavaliers from the dregs of the NBA to
one of the leagues premier teams. He added deals with lawn mower maker Cub Cadet, McDonalds,
Microsoft and State Farm and earned $43 million in salary during his final three years with the Cavs
after his four-year rookie contract expired.
James joined the Heat in 2010 as a free agent with a six-year, $110 million deal that matched fellow
free agent Chris Bosh. Both players took less money to join the Heat and could have guaranteed
themselves an additional $30+ million apiece to re-sign with their respective teams, the Cavaliers
and Toronto Raptors, in 2010. James and Bosh had matching $19.1 million salaries last season,
which tied for eighth highest among NBA players (ninth if you count Gilbert Arenas and his $22.3
million amnestied salary). At least four NBA players will earn more than James next year if he signs
for the $20.7 million max. Kobe Bryant is due $23.5 million from the Lakers and will be the NBAs
highest-paid player for the fifth straight year, while Amare Stoudemire ($23.4 million), Joe
Johnson ($23.2 million) and Dwight Howard ($21.4 million) are all set to earn more than $21 million
as well.

The move to the Heat, and the TV special announcing the decision, caused a significant backlash
against James, but it did not hurt his earnings power. Winning two titles certainly helped rehab his
reputation. James was well aware of the power of winning when he joined the Heat. Winning an
NBA Championship is the ultimate goal and winning and succeeding in basketball drives all
business, James told Forbes in 2011.
A year after the move to the Heat, James and his marketing firm, LRMR, partnered with Boston
based Fenway Sports Management. The deal netted James a seven-figure cash payout, and he also
became an investor in British soccer club Liverpool, which is owned by Fenway Sports Group. The
marketing partnership created a host of new opportunities for James, particularly in Asia, where
Liverpool has a huge following. James signed a two-year, multi-million dollar deal in 2012 to shill for
Dunkin Donuts and Baskin-Robbins in Asia. He entered into a partnership last year with Chinese
internet services firm Tencent. James serves as a spokesperson for the companys NBA2K Online
video game. Other recent partners in the James endorsement stable include Samsung Electronics
Samsung Electronics and Audemars Piguet (see Red Sox Nation Goes Global).
Nike continues to be James biggest and most lucrative partner. Sales of James early Nike signature
shoes were sluggish, but Nike and James eventually found the right recipe with the LeBron VI, which
was a hit with consumers. Sales of James signature Nike shoes doubled in 2011 and jumped
another 50% in 2012 to reach $300 million in the U.S., according to research firm
SportsOneSource. Sales were flat last year, but were almost twice as much as the second bestselling active player, Kevin Durant. We estimate that James earns nearly $20 million a year from
Nike, including royalties, under his latest deal, which James re-signed with the $28 billion-in-sales
sportswear giant in 2010.
In addition to his endorsement prowess, James has cashed in on his equity stakes in companies.
James, who is a biking enthusiast, bought a 10% stake in bike-maker Cannondale in 2007 before
unloading it two years later. He was one of the co-founders of energy strip brand, Sheets. He sold his
equity stake in the brand during the 2012-13 season for a low seven-figure profit.
His biggest equity payout occurred when Apple AAPL +0.99% announced in May plans to buy Beats
Electronics in a cash and stock deal worth $3 billion. James partnered with the high-end
headphones maker in 2008 when he supplied his teammates with Beats by Dre at the Beijing
Summer Olympics. James has been cashing royalty checks ever since that have topped $1 million
annually in recent years as the brand exploded. Published reports put James take from the sale at
more than $30 million, but our sources say James owned less than 1% at the time of the deal
(James camp would not comment on his stake). The deal pushed James off-court earnings over $50

million this year, and he ranked third among the worlds highest-paid athletes behind only Floyd
Mayweather and Cristiano Ronaldo.