What do the New York Knicks, New Jersey Nets, San Antonio Spurs, Chicago Bulls, Detroit Pistons, and Portland Trail Blazers all have in common?
Each team has been mentioned as a potential suitor for LeBron James in 2010, when his contract expires with the Cleveland Cavaliers.
These franchises all have the cap room to make a run at James and the media has had a field day weighing the pros and cons of each destination, even though his decision is still two offseasons down the road.
While each team feels that they have the pieces to lure LeBron, the biggest player come 2010 may very well be Nike, who can offer the superstar more money than any of the competing NBA clubs and will definitely make their presence felt throughout the course of the LeBron James sweepstakes.
For the past couple of years, a rumor has continued to pop up that a clause exists in James' contract that would increase his earnings if he were to sign with a team in a large market such as New York or Chicago. While this sounds good, it is simply not true.
No such clause exists and I'm not sure how the rumor started. One thing that is true however is that LeBron would likely make more money if he were playing in a larger market, even without this imaginary contract clause.
Nike rewards bonuses to its athletes if they reach certain sales goals. According to reports, LeBron has failed to reach any of these marks during his tenure with the Cavaliers, a trend that would likely change were he to play for a larger market.
So while it’s false that LeBron's salary will jump if he heads to a larger city, he would likely make more money in the form of bonuses in a bigger market, increasing his earnings without any clauses.
Even if there were a kicker in LeBron's current contract, it wouldn't matter in 2010. This is because James' contract will expire that year, making him a free agent in both the NBA and the shoe market.
This gives Nike even more power as they'll be able to offer a larger contract if he signs with the team of their choice. This means they could be improving James' bank account with both guaranteed money depending on where he signs and through the bonuses he'll rack up once he gets there.
But Cleveland has LeBron's Bird Rights, meaning they can offer him a lot more money thanks to the NBA's Collective Bargaining Agreement, canceling out any attempts by Nike to control his destination, right?
Wrong.
In an interview with Sports Illustrated several years ago, when LeBron's rookie contract was coming to an end, one Western Conference executive pointed out that Nike doesn't have to follow the NBA's salary cap and can eliminate Cleveland's Bird Rights advantage.
"He may be willing to sign for nothing more than the mid-level-exception [$5 million] with the understanding that Nike will make up the difference," the executive said.
That means LeBron could sign with a team like the Los Angeles Lakers or Boston Celtics for cheap, forming an instant championship favorite while still making the same amount of money as he would signing a max deal with a less dominant club. While this is unlikely, it's a possibility and shows just how much weight Nike carries in this process.
A similar technique was used by the New York Knicks in 1996 offseason when they were pursuing Michael Jordan. While they couldn't offer a h
Nike's Role in the LeBron James Sweepstakes
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11 comments Last one added 6 months ago — Leave a Comment
Marah McAleer 6 months ago
true shii man.
good read:]
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Alex Kennedy 6 months ago
Thanks, Marah. Glad you enjoyed it. :)
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Dave Morrison 6 months ago
Great article Alex! Great read. Do you think there is any chance that Nike wants LeBron to go to Portland? i mean Nike HQ is in Portland and Phil Knight is an Oregon man. He pumps cash into U of O sports programs, maybe Phil would want to give a boost to Oregon's pro team?? I don't know, but I think LeBron will end up in either Brooklyn with the Nets and his boy Jay-Z, or the Knicks.
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Alex Kennedy 6 months ago
I've considered Portland as well for the reasons you mentioned but I can't see it happening. While Phil Knight would love it, I can't see him choosing to improve his hometown team over all the money that Nike would make if LeBron was playing in a huge market like New York. It is a possibility though and thanks for the comment!
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Michael T. Penn 6 months ago
Wow I didn't think it possible for anyone to add anything original to this Lebron 2010 discussion. Well done. I enjoyed this article. Kind of made me want to work for Nike.
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Alex Kennedy 6 months ago
Thanks Michael. It kind of makes me want to own Nike. haha
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Andrew Ungvari 6 months ago
Good stuff as always, Alex.
The players union would definitely frown upon LeBron taking a lower salary and making the money back on the other end. It's one thing for a veteran ring-chaser like Karl Malone or Gary Payton to take less money in the twilight of their careers but it's a whole different animal when it's a player in his prime. The player's union wouldn't want LeBron to set a dangerous precedent where teams start low-balling free agents and telling them to do what LeBron did and get the rest of their money from endorsements.
Also, the current collective bargaining agreement is set to expire in 2011 and the owners have an option to extend it to 2012. Considering the state of the economy the owners will probably choose to end the agreement in 2011. It's going to be a buyer's market so we could see a lock-out. Now you know why there was chatter last month of LeBron signing an extension after this season—because chances are the maximum amount of money that a player can make will decrease.
LeBron might sign another three year extension for $58 million before the current CBA runs out with a chance to opt-out after 2011 or 2012. It's the same reason why Kobe will probably get a max deal for six years this summer for $156 million with a chance to opt-out after three or four years.
The owners have to notify the players by December 15, 2010 if they plan to opt out or not.
Don't forget that if LeBron's also a shoe free agent then he can play hardball with Nike too. If they don't want him to stay in Cleveland he can threaten to jump to Adidas or start his own co-venture with another shoe company where he's part owner of the company.
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Alex Kennedy 6 months ago
Thanks for the comment Andrew. You make a lot of great points.
I didn't realize the collective bargaining agreement expires so soon. That could play a huge role in this situation.
Also, that's very true about LeBron playing hardball with Nike. I can't see him leaving though because of how flexible and good Nike has been to him. Still something to think about though.
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Tosten Burks 6 months ago
Really fresh. Really interesting.
Nice.
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Alex Kennedy 6 months ago
Thanks Tosten, glad you enjoyed it.
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Tim Tanner 6 months ago
Alex I hate to tell you this but Nike could never ever engage in the type of conduct that you've dreamed up here unless they want to get sued out of their minds. They cannot openly wheel and deal with Lebron as an outside party to get him to move from the Cavs to the Knicks. It's called tortious intereference with business relations. It's illegal. Add this to the rest of the half-baked media hype surrounding Lebron and his potential 2010 whereabouts.
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