Lebron James to sign $140 Million shoe deal

[Guest oldschoolwrestling]

LeBron James, the most publicized and arguably greatest high school basketball player of all time, is about to claim a new title: owner of the richest initial endorsement contract in basketball history.

 

 

 

 

 

The Akron, Ohio, 18-year-old is expected to choose a shoe deal by Thursday that should net him between $100 million and $140 million before incentives, according to two sources with intimate knowledge of the process. The deal will run between seven and 10 years, the sources said.

 

The race is between Nike and Reebok, although Adidas has not been officially bumped from the running. Both Nike and Reebok are expected to make final offers to James and his agent, Oakland, Calif.-based Aaron Goodwin, over the next couple of days.

 

The perceived leader at this point, according to various sources, is Reebok, but cash-rich Nike, the industry leader, should never be counted out.

 

The deal will shatter the first offerings made to superstar athletes such as Michael Jordan, Tiger Woods and Kobe Bryant.

 

In December of 2002 SportsLine.com, citing industry sources, first reported the James shoe deal would approach $100 million over the life of the contract.

 

The James team expects to agree to a deal before Thursday's NBA Draft lottery, where James' future home, a lock as the first pick of June's NBA Draft, will be determined.

 

James would rather wrap it up now rather than risk a cooled interest should the player wind up in a small market. There is also a chance he could land with lottery teams New York or Chicago, which would increase his value.

 

According to the National Basketball Players Association, if James is the first pick in the draft, his rookie contract will guarantee him $10.8 million over 3 seasons.

 

 

LeBron James will likely sign the richest initial endorsement contract ever. (AP)

One of Nike's richest contracts is with golfer Tiger Woods, a five-year, $100 million deal that replaced his 5-year $40 million original package signed in 1996.

 

Reebok, according to sources, is intent on gaining market share in the billion-dollar basketball apparel market and sees James as its vehicle. The company already has a profitable signature shoe line featuring Philadelphia's Allen Iverson and smaller deals with NBA players Steve Francis and Baron Davis.

 

But the company believes James is a figure that can excite Wall Street, where he will be seen as the next Jordan-caliber endorser.

 

In 1985, Reebok, riding the aerobics craze with its popular cross training shoe, was the industry leader in the shoe and apparel market. But by 1986, Nike endorser Jordan scored 63 points for the Chicago Bulls in an NBA playoff game against Boston and sales of his red and black Air Jordan shoes took off.

 

Nike reclaimed its title as industry leader that year and has never looked back. The company went from $900 million in annual sales in 1985 to around $9 billion last year.

 

That is why the signing of James is such a high-stakes and high-money affair.

 

Reebok, which despite having the popular Iverson and his profitable shoe line in the fold, is not considered a major player in basketball. It is a desirable market because hot shoes can be sold for over $150, creating a huge profit margin.

 

The signing of James would change that. What is considered an industry with two major players (Nike, Adidas) would quickly add a third.

 

James is like no other high school player ever. A dynamic and charismatic 6-foot-8 guard, he has sold out arenas throughout the country and had two of his high school games nationally televised on ESPN. He has been the subject of incredible media attention, something that should grow during his highly anticipated rookie season.

 

The James team -- Goodwin, mother Gloria and himself -- met with all three shoe companies last week, according to sources.

 

They flew to Massachusetts to meet with Reebok officials at the British company's North American headquarters. He spent a day in Los Angeles with Adidas leaders and then spent two nights in Beaverton, Ore., at the corporate headquarters of Nike.

 

The team is being advised by Fred Schreyer, a former high-ranking executive at Nike during the 1980s who now directs Pyramid Sports, a sports management company in Portland, Ore. Schreyer was present at at least two of the three meetings.

 

Adidas, which sponsored James' high school team, St. Vincent-St. Mary's of Akron, and his traveling summer team, is unlikely to sign the star at this point. The company put Adidas billboards up around greater Akron recently but will likely turn its attention in another direction.

 

The company, industry sources say, is close to an agreement with an established NBA superstar that will join Orlando's Tracy McGrady as its signature endorsers.

 

As for James, the next two days will determine his very rich future. Reebok is determined, Nike still has the most money.

 

Which means an 18-year-old could sign a nine-figure endorsement deal before he even graduates from high school.

 

cbs sportsline.

[Guest Spicy McHaggis]

I can't wait till he flops.

[Agent_Bond34 0]

Geez

 

I wonder what the hell LeBron James is gonna do with all of that money?

 

And I bet you he signs with Nike.

[Guest MaxPower27]

He'll probably sign with Nike and his first shoes will retail for around $200. There will be lines out the doors of the mall for them, and I'll have to go in early and sell them

 

Labron James

[Guest Vern Gagne]

He'll probably sign with Nike and his first shoes will retail for around $200. There will be lines out the doors of the mall for them, and I'll have to go in early and sell them

 

Labron James

What's with the ? James just happens to be blessed, fortunate whatever you wanna call it to have great skills.

[Guest Bannable Offense]

He's basically set for life no matter how overhyped he could turn out to be. James has not yet to lift a finger in the NBA and is already a multi-millionaire. If the money is there for the taking, take it. Hopefully for himself he doesn't get too many people in his ear and that he's mature enough to invest wisely. Even millions can vanish instantly if you're a moron about your finances.

[Guest Spicy McHaggis]

He'll probably sign with Nike and his first shoes will retail for around $200. There will be lines out the doors of the mall for them, and I'll have to go in early and sell them

 

Labron James

What's with the ? James just happens to be blessed, fortunate whatever you wanna call it to have great skills.

great hops, good size (for HS), decent skills...

 

won't make it as a centerpiece.

[Guest Redhawk]

I'm not doubting that LeBron has the skills to justify all the hype. You can just tell if you watch his games -- even if he is playing HS kids -- that he just "gets it." But what about injury? I have no doubt LeBron is covered in that case with an insurance policy, but what about Nike or Reebok? What do they do if LeBron plays a couple of years and then turns into Ron Harper? There goes their company pitchman.

[Guest starvenger]

He's basically set for life no matter how overhyped he could turn out to be. James has not yet to lift a finger in the NBA and is already a multi-millionaire. If the money is there for the taking, take it. Hopefully for himself he doesn't get too many people in his ear and that he's mature enough to invest wisely. Even millions can vanish instantly if you're a moron about your finances.

I'd be more worried about LeBron's momma spending all that money.

 

So he'll be getting between$10 and $20 mil a year, and they're expecting him to be a superstar right away. No pressure or anything, eh?

[Guest Eagan469]

He can't play defense for shit.

 

all I have to say...

[Rendclaw 0]

He'll either learn or he won't.... either way he's set financially.

 

Bannable Offense, I LOVE that old school Nintendo Punch Out banner! where did you get that from???

[Guest Youth N Asia]

This guy is going to clean up from that deal, so I hope he fails bad. He'll still have way more money they anyone should have...but this is just too good of a set up for a failure.

[Guest Bannable Offense]

Bannable Offense, I LOVE that old school Nintendo Punch Out banner! where did you get that from???

I made it myself late last night. I used MS Paint to edit some pixels of a screencap I found on a site whose name I've already forgotten. Something about Super Macho Man screamed "TRIPLE H!" to me, and what you see is the result of having nothing better to do at 2 in the morning.

[Rendclaw 0]

I about fell out of my chair when I saw that.

[Guest TheArchiteck]

Make no sense at all......

They invest too much in these people...

Call me a hater if u must...

[Guest Bannable Offense]

I about fell out of my chair when I saw that.

Huh. Didn't realize it was edited at first?

[Rendclaw 0]

oh I knew that it was, but it about killed me, I was laughing so hard.

[Guest Bannable Offense]

oh I knew that it was, but it about killed me, I was laughing so hard.

Well, mission accomplished then.

[Guest Smell the ratings!!!]

Thank god NBA has max contracts. If this was baseball Lebron would be signing a 15 year, $600 million deal with the Yankees in 3 years.

[Rendclaw 0]

:;cracks up again when he sees the second half of the banner::

[Guest Choken One]

If he wants to prove himself a God...Sign with Puma.

[Guest alkeiper]

One suggestion for the banner.....the number next to the stars in the corner should be negative.

[Guest Ripper]

Penny Hardaway...that is what he is.

 

He is 6'8, great handles, great passing abilities and a streak shooter and can finish at the basket. He will be Penny before the knee injuries.

 

BUT...

 

Penny Hardaway has always been and still is a basketball genius. He knows how to play the game so incredibly well...it is ridiculous. Will Lebron have that ability?

 

He will not be a flop baring injuries. I expect a good 15, 5, 5 year for him as a rookie.

[Guest ant_7000]

I thought I read a report that LeBron signed a 7.5 million dollar with reebok already? Why all the hate because he's getting money? Anyway, from what I saw of him, I think he'll live up to the hype in 3 years. He's already playing pick up games with NBA players and they all said he can hold his own. Ripper, I agree he might be Penny Hardaway when first he came out, but I think he's going to be better than Penny, if he doesn't get injured.

[Guest Polish_Rifle]

How can he not flop? There is just too much hype to live up to. It seems to me that he is just a very athletic high school kid that is going to have to develop a jump shot in the NBA against much more or equally athletic MEN in the pros.

 

I hope the Clips don't win the lottery tomorrow and pick up this guy. That is your recipe for disaster there. Sterling and Elgin Baylor will not resign Brand, Odom or Corey if they get LeBron.

[Guest Smell the ratings!!!]

Not to be a dick, but they won't resign Maggette if God himself gives them the money.

 

Looks like Lebron will be one of those Magic/Penny/Pippen "point forwards" that is a matchup problem for every team in the league.

 

Just out of curiosity, anybody know how his free throw shooting is?

[Guest Spicy McHaggis]

Why all the hate because he's getting money?

No hate from me for that. I'd take that $ in a second. But I just don't buy the hype. He's decent from an NBA perspective. But NO ONE, from Jordan to KG to AI to Kobe, had this much praise/credit/expectation when they had yet to even play a game.

[Guest Bannable Offense]

One suggestion for the banner.....the number next to the stars in the corner should be negative.

Fine suggestion noted and the banner will be altered.

[Guest Ripper]

Garnett, Kobe and Jordan weren't as good as this guy is at that point in their lives.

 

Basically you guys are hating on him because the press shoved a camera in his face...okay...doesn't make much since but fine.

 

I don't see how he could be a flop baring major injury. Talent is talent. Bottom line. This kid has been putting it to NBA stars in the offseason since his sophmore year in high school. Will he be the second coming...don't know...but he will be far from a flop.

[Agent_Bond34 0]

On a slightly related note...

 

Carmelo Anthony signs with Nike