Please ensure Javascript is enabled for purposes of website accessibility

And LeBron James Goes To …

By Rick Munarriz – Updated Apr 6, 2017 at 12:47PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Disney's ESPN has a surprising amount to lose from the NBA's biggest decision.

The biggest question of the whirlwind NBA free agency season will be answered tonight on Disney's (NYSE: DIS) ESPN. In an ego-padding hour-long special called The Decision, LeBron James will reveal where he will be playing basketball for the next few years. But while the special seems like a slam dunk for ESPN, it could prompt many viewers and investors to cry foul.

For starters, don't bother drooling over the advertising profits, my fellow Disney shareholders. In a surprising move, sponsor payments will go directly to the Boys and Girls Clubs of America, at James' request.

That could yield a significant charitable contribution, given the murderer's row of advertisers lined up for the special. Microsoft's (Nasdaq: MSFT) Bing -- prominently featured on James' new website -- and the University of Phoenix will sponsor the whole shebang. McDonald's (NYSE: MCD) and Coca-Cola's (NYSE: KO) vitaminwater will round out the advertisers, during what will likely be the country's most-watched infomercial ever.

Coca-Cola's Sprite and longtime backer Nike (NYSE: NKE) will also be making donations, according to yesterday's New York Times.

If you think the special's a can't-miss proposition, think again. Even though the ad sales will raise money for charity, online sport forums now buzz with accusations that a bloated ego has led James to play up a historically simple free-agency decision.

James also may be in a no-win situation regarding his choice -- which could be bad news for the corporate sponsors anchoring their brands to this event. The logical decision would be to return to his hometown Cleveland Cavaliers, where he can sign the most lucrative deal. However, despite all of the karma points he'd earn for sticking to his original team, viewers will feel bamboozled if they tune in to an hourlong production, only to learn that he's not going anywhere.

Will he choose the major-market allure of Chicago or New York? Will he follow superstar friends Chris Bosh and Dwyane Wade to Miami? There's been a ton of teasing during the past week's courtship rituals, but only one team will land James. In other words, this show will doubtlessly disappoint the majority of its viewers once James fails to choose their team.

All of the hype could backfire on James' brand, and on the advertisers forking over charitable contributions to ride the bandwagon. Along the way, Disney's ESPN might also be taken down a few pegs for selling out.

In short, The Decision isn't as relevant as the ramifications. 

Where do you think LeBron James will wind up? Share your thoughts in the comments box below.

Walt Disney, Coca-Cola, and Microsoft are Motley Fool Inside Value recommendations. Walt Disney is a Motley Fool Stock Advisor pick. Coca-Cola is a Motley Fool Income Investor selection. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool owns shares of Coca-Cola. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz has been a Miami Heat season ticketholder since 2004. He owns shares in Disney. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$98.12 (-1.39%) $-1.38
McDonald's Corporation Stock Quote
McDonald's Corporation
MCD
$243.76 (-0.89%) $-2.19
Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$237.45 (-0.20%) $0.47
The Coca-Cola Company Stock Quote
The Coca-Cola Company
KO
$57.87 (-1.25%) $0.73
NIKE, Inc. Stock Quote
NIKE, Inc.
NKE
$96.06 (-0.99%) $0.96

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.