LeBron James

Anita  Elberse; Jeff  McCall

Case | HBS Case Collection | January 2009 (Revised March 2010)

LeBron James

Abstract

In 2005, to the astonishment of many sports industry insiders, superstar basketball player LeBron James fired his agent and established his own firm, LRMR, to handle all aspects of his business ventures and marketing activities and named his childhood friend Maverick Carter as the CEO. LRMR is tasked with turning James into a global icon as well as helping him reach his personal goal of becoming basketball's first billionaire. In late 2008, James has entered various lucrative endorsement deals and is considering three exclusive videogame endorsement opportunities from Electronic Arts, 2K Games, and Xbox Live to add to his portfolio. Allows for a rich discussion about how superstar athletes and other celebrities can create and capture value from their brands as well as what role talent agencies and other intermediaries play in that process. Provides in-depth information on three endorsement opportunities that each represents a common way in which talent can (choose to) get compensated: through a fixed-fee payment, a bonus payment structure, or a revenue-sharing agreement.

Keywords: Talent and Talent Management; Compensation and Benefits; Brands and Branding; Marketing Strategy; Sports; Sports Industry;

Language: English

Format: Print

4 pages

Educators Purchase

Citation:

Elberse, Anita, and Jeff McCall. "LeBron James." Harvard Business School Case 509-050, January 2009. (Revised March 2010.)

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It is June 2016. Superstar basketball player LeBron James and his childhood friend and business partner Maverick Carter are celebrating James’ third NBA championship. The duo will soon have to decide on a strategy for their media businesses—their film and television production company SpringHill Entertainment as well as their digital sports platform Uninterrupted. In 2015, Carter and James negotiated a first-of-its-kind, three-year agreement with Hollywood studio Warner Bros. Entertainment that gave SpringHill Entertainment a first-look movie deal, an exclusive television deal, significant development resources that also could be used for the creation of digital content, and space on the studio lot. Later that year, Warner Bros. signed on as a lead investor in Uninterrupted. Were Carter and James right to partner with Warner Bros. in this manner? And with renewal negotiations just around the corner, how could they make the most of the opportunity?

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LeBron James

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LeBron James

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