LeBron James is the NBA’s first billion dollar man. He won’t be the last

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James is the first player in an American team sport to reach the three-comma club, but he won’t be the last, as a new generation of athletes seek big scores through equity deals and awards. name, image and likeness changes. the rules may start the clock earlier on sports stars banking.

Durant, 32, is most likely to reach $ 1 billion among active gamers. He still owes him $ 84 million from the Brooklyn Nets over the next two seasons and about $ 85 million from Nike until 2024, when his 10-year contract with Swoosh will expire. KD has largely avoided further approvals in recent years and has focused on its investment vehicle, Thirty-Five Ventures, which has made over 75 investments and had some huge wins with Coinbase and Postmates. Elite athletes have access to opportunities typically reserved for billionaires, venture capitalists, and Wall Street insiders.

“Each player is their own little business conglomerate,” said Bob Dorfman, sports marketing expert at Baker Street Advertising. “It’s more on the equity side and the creation side; it’s less holding a product for 30 seconds and saying that I shave with it.

The NBA is the fastest way for American team sports stars to accumulate income. The league, with help from Nike and Adidas, is turning the All-Stars into global icons, making sponsorship deals beyond what an NFL or MLB player could earn. Salaries are also increasing. Luka Dončić, 22, is eligible for a five-year contract extension this summer worth $ 200 million. The Dallas Mavericks star could cash in over $ 700 million in salary alone by the age of 36 if the NBA salary cap continues to rise and the two-time All-Star maintains his elite game.

The rules of marketing are also changing. “We live in a world without borders where athletes now have the opportunity to take advantage of global opportunities,” said David Carter, director of Sports Business Group, industry consultant. “The filters have also been removed; an athlete no longer has to worry about focusing solely on their brand because of how the media filters it or what their team or league is doing with their intellectual property; they can contact directly.

James is the archetype of this new era of athletes. He has direct access to his 167 million followers on social media, fifth among athletes after Ronaldo, Messi, Neymar and Virat Kohli. It can promote its traditional sponsors, as well as brands in which it also owns interests, such as Calm, Ladder / Openfit, LOBOS 1707 tequila and Blaze.

Along with longtime business partner Maverick Carter, the 17-time NBA All-Star has formed his own media and production companies, which are part of The SpringHill Company. He’s potentially in line for another giant paycheck, as reports last week suggested the company could invite outside investment at a valuation of $ 750 million.

James entered the NBA straight from high school in 2003, armed with sponsorship deals with Nike, Coca-Cola and Upper Deck; the NBA banned the recruitment of high school players two years later. The updated NIL rules will give a wide range of athletes the opportunity to capitalize on their fame before going pro. The overwhelming majority of those deals will be for limited pay, but a huge score is still possible with an equity stake, and that probably won’t stop in college, as deals for high schoolers are inevitable, according to Carter of the USC.

“You’re building your own brand sooner, faster and bigger through social media,” said Dorfman, who points to a 16-year-old “Bronny” James with six million Instagram followers, a role of FaZe Clan Ambassador and prenatal fame as a person. who could be another potential billion dollar hoop star. “He learned from someone who’s been in the league before and has business acumen and knows how to find the right opportunities. And there will be a lot more opportunities. “