It pains me to write about the NBA, it really does. Back when NBA basketball was a real sport, I only had to watch grown men flop around like Mike Tyson had punched them in the face once every four years, during the World Cup. However, now that the NBA has followed soccer into the acting business, I guess it is just a European "sport."
While we don't have to watch the NBA, we can still make a profit from understanding the business that is LeBron James. The landing spot that has the most potential for LeBron Inc. is New York. The biggest market in the United States would propel LeBron from his Ohio roots into an even bigger spotlight. Some economists believe his value to a successful Knicks franchise would be greater than $150 million.
You can make a direct wager on where you think LeBron will play next season on intrade.com, but I prefer playing the stocks. Let's have a look at some of the companies that would stand to benefit from seeing LeBron in a Knicks jersey.
Madison Square Garden
The biggest beneficiary would likely be the publicly traded ownership of the New York Knicks and the broadcasting rights to Knicks games. Not only would James boost ticket sales, suite prices, and apparel sales, but he would also significantly increase advertising rates for a team that has been floundering.
Shares traded up about 6% in early trading on Wednesday because some investors believed that the Knicks' signing of Amar'e Stoudemire would entice LeBron. Shares gave up much of those gains during the day as rumors persisted that he would stay in Cleveland, but surged higher once again at the close as more bets were placed on a New York landing.
Nike
As the official sponsor of all things LeBron James, one would have to assume Nike would prefer he land with the Knicks as well. Nike quickly squashed speculation that LeBron had incentives in his contract that would increase his earnings if he were to sign with the Knicks. However, LeBron would likely sell more Nike-branded products if he moves on to this much larger market.
Lions Gate Entertainment
Lions Gate owns the worldwide distribution rights to a documentary on James titled More than a Game, which has become a cult favorite. James' splashdown in New York would increase his media presence even further, opening the gate for future deals with the company. An added benefit of buying Lions Gate shares is you would be buying alongside activist investor Carl Icahn, who continues to increase his ownership in the company in his attempt at a takeover.
Foot Locker
The athletic shoe retailers would also benefit from New York's much larger fan base and its sexier image relative to Cleveland. These stores also sell LeBron-branded apparel and official jerseys, for which fans would trade in their old Cavalier jerseys.
Why let LeBron have all the fun when there are ways to profit from his shenanigans as well? Where do you think LeBron will sign, and what other companies stand to benefit? Let's discuss in the comments box below.
