LeBron James: An Endorsement Superstar
* LeBron James was a basketball superstar right out of high school. At such a young age he possessed the talent that would make his name known throughout the world of basketball. His most important move in terms of revenue had been made off of the court, which lands him as one of the highest paid athletes to this day.
* Aaron Goodwin was LeBron’s agent until 2005. He was a diving force in negotiating LeBron’s Nike endorsement. This endorsement was worth $90 million which propelled James into a league of his own in terms of the endorsement world.
* When LeBron fired his agent, he ...view middle of the document...
They generated $4.7 billion in revenue in 2008, which are very promising numbers for LeBron James to consider signing with them. EA had videogame titles such as NBA Live, NCAA Basketball, and NBA Street. This means they have their foot in the door in terms of the basketball videogame world and they have profited pretty well from those games. They wanted to make James the cover athlete to NBA Liveand offered him a two-year contract. The first year they would pay him $400,000, and the second year $300,000. EA would also need LeBron to be free for two days in order to do a commercial shoot to promote the game. He would not be offered any extra for this. It would allow James to get a lot of exposure throughout the videogame world and on TV. He is already a superstar athlete by playing basketball so I do not believe this is a issue that needs to be fixed.
* 2K Games was a videogame endorsement offer that would make a lot of sense to take part in. 2K Games was a subsidiary of Take-Two Interactive, which was a well-known videogame producer. They did not take in as much revenue as EA did in videogame sales, but they did specialize in basketball videogames. 2K Games would offer James a more lucrative deal, and more flexible. It would be a two-year deal with payments of $300,000 in year one and $350,000 in year two. If the game was successful in sales, 2K Games agreed that they would extend the endorsement deal. If the sales were more than 2 million units in the first year, James would get paid $500,000. If it were 2.5 million units, he would gain an extra $250,000. In year two, James would receive $500,000 with 2.25 million units sold, $250,000 with 2.75 million units sold, and $750,000 with 3.75 million units sold. They would ask James for a considerable amount of time for “motion...