Wednesday, February 27, 2008

Lebron to the Nets? pt2

Note: this started as a comment, but quickly evolved into a dissertation; hence, the separate post.

One thing is undeniably clear, LeBron James is the most business savvy basketball player that has ever played in the NBA. I think Jordan took what was given to him (to use a terrible cliche). Nike came calling, and he obliged. So did Fruit of the Loom, and so on and so forth. But he really didn't do much other than play basketball and take his money. He was pretty quiet, and let the marketers define him. This was a wise move on his part - to let professionals build him into a global icon. However, the other ventures he's led weren't maximized in a business or marketing sense (baseball, team ownership, team management, etc). LeBron came out of the gate and took a shorter contract in order that he might make more money in the long term. Unheard of, but pure brilliance, none the less. Most in the NBA business were surprised by it. Something so simple yet so obvious is a mark of business genius. Everyone else in the class (Wade, Bosh, Carmelo) obviously thought so. The Cleveland Cavaliers know LeBron has a different mindset. They know he's about more than basketball. I'd bet they've talked with him about it. The Cavs haven't won anything relevant in a really long time. Getting to the finals proved to LeBron and the team that they can get close. I would not argue that LeBron wants to win a championship for his "hometown" team. Immediately elevates the legacy. However, I don't think he needs to win multiple championships there. The Cavs and LeBron have decided to pull all the stops for him to win a championship in Cleveland and then see what happens from there (see: Brooklyn Nets). Cleveland is happy (kinda), the front office can say it tried, and LeBron won one for the home team. He'll might be vilified by Cleveland for jumping ship, but the national media will love the move.

All these articles give great reasons for him to go, now a couple, small, reasons it might not work.

1. Cleveland can give him more money.

One of the best parts about the NBA. Allow the team that has a player give him a larger max contract than anyone else. Every other pro sport allows a player to get poached from the team that drafted him, but the NBA gives a player's current team the upper hand. It's why Kobe stayed in LA, it's why Carmelo will stay in Denver. Some smaller markets can't afford the max contract, but Cleveland would for LeBron. He wouldn't make more money in NY unless he had a stake in the operation ...

2. Players can't own part of the team.

This is one way that the NBA is similar to other pro sports. A stake in a franchise would make a lot of sense to someone like LeBron who already makes more money off other sources than basketball. It would also allow LeBron to capitalize on the marketing money that his name would draw in NY. Unless, of course, Jay-Z would go 50-50 with LeBron on his new marketing company and get in on some of the advertising revenue the new stadium would bring in with the game's biggest star. Let's not forget ...

3. Jay-Z is not the Nets majority owner

Bruce Ratner is the principal owner. And as such, would probably want as large a chunk of the LeBron pie as he could get. He's a developer, the one who initially floated the idea of bringing the Nets to Brooklyn. Landing LeBron makes his investment increase ten-fold. The 'new' New York team, with LeBron? Shoot. Good luck prying any of the marketing money out of his hands. LeBron and Jay-Z could try some auxillary marketing opportunities, but without NY, they'd have the same opportunities in Cleveland as they would in Brooklyn.

4. What would he do with that house?!?

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