Lead
Today, James was crowned NBA's all-time scoring champion. In the past 20 years, he has built his own business empire. This article tells how the prototype of James' business empire was established, first published on the "Sportsline" public account, and the original work was written in 2016.
Author丨Zhang Bin
Picture丨From the Internet
Who is Maverick Carter?
James is a successful businessman with a keen sense of smell and a daily moving. The lifetime contract with Nike gave his business empire evergreen capital. To describe James' roadmap for the expansion of his business empire, one first needs to understand the most important "chief of staff" on his staff, Maverick Carter.
The real helmsman of James' business empire is Maverick Carter. In 2006, the two of them co-founded LRMR (Quadripartite Initials) brand marketing company with two other childhood friends, Randy Meams and Rich Paul. Maverick, who was under 24, became the company's CEO.
Since then, almost all of James' major decisions, including the "decision" to go to South Beach, the "decision 2" to return to Cleveland, and James' lifetime contract with Nike, Marfrik Carter is behind the scenes. The business empire they forged together became a case study at Harvard University. Carter even lectured at Harvard as a guest lecturer.
To thoroughly sort out James' business empire, the character of Maverick Carter is extremely important. What is this sacredness? He is known as James' childhood friend and a member of the St. Mary's High School team. In fact, Maverick Carter is a legendary figure in his own right.
He was born into a very strange family. His father was an addict and his mother worked a 9-to-5 job. Such an extremely divided family created Maverick-Carter's perverse character.
His father, Otis, had heart surgery when he was 5 years old and never got a full-fledged job. As a young man who didn't even have a high school education, he had to struggle for his life in order to make ends meet. After he made his 21-year-old girlfriend's belly bigger, everything got worse.
"I worked hard outside to take care of my home. I always make sure there is food on the table at home. In an interview with American reporters, the elder Carter perked up.
Mafrik Carter's mom, Catherine, is destined to fall in love with someone who doesn't come home. He did not return home because he was sent to prison twice. These two incarceration experiences almost filled Maverick Carter's childhood.
While Otis was sitting in prison in Texas, Michigan, and West Virginia, Catherine got a job as a social worker in the welfare department. Using her lunch break and evening classes, Catherine earned a degree from the University of Akron. After 24 years, the department she worked for had long since changed course, and Catherine was still doing the same job.
Two very different people shaped Maverick-Carter's unique worldview.
It seems that his father's vain lifestyle, and his grandmother's way of behaving, left a stronger mark on Maverick Carter. When my grandmother gambled, she would pay Marfrik Carter to sweep the floor and guard the yard.
By the time he was 16, he was already peddling marijuana cigarettes. "I'm not doing this because I need money. In the environment I grew up in, it wasn't a big deal, very normal. You often see people selling marijuana as well as drugs. It was summer, and I was wandering around the park and thinking, "Why not?" This is Maverick Carter's statement.
However, his mother discovered it all by accident. In order to catch up on an errand, Catherine hurried out the door and took the wrong coat. That coat belonged to her only son. She smelled marijuana and then seized the "swag" in her inner pocket.
"I ran home and immediately dealt with it. He must not stand on a street corner peddling marijuana. This must never happen again. I know the dangers of drugs. I saw the harm that drugs had done to his father, and I saw the damage that drugs had done to my sister (or sister), his aunt. Catherine said.
With great athletic talent and a flexible mind, Maverick-Carter eventually escaped and was spared a beating.
Maverick Carter's athletic talent is not covered. He was already a talented shooting guard at St. Mary's High School and was about to graduate from high school and enter college. That year, James became a freshman at St. Mary's High School. Carter's role was to mentor James.
The friendship between the two predates St. Mary's high school days. Four-year-old James attended seven-year-old Maverick Carter's birthday party. Otis has known James' mother, Gloria, for a long time. In James' eighth and ninth grades, Otis often drove James and his classmates to school.
When James entered St. Mary's High School, he was far from the "chosen son" of heaven. He was only 6 feet tall and had great basketball talent. Maverick-Carter sees this gifted slum kid struggling to adapt to the outside world.
He saw his own shadow in James. "James had never communicated with a white man before entering St. Mary's High School." The influence of Maverick Carter on James is conceivable.
The time spent by the two in Gao was very short. Marflick Carter received a scholarship from Western Michigan University. Before Malfrik Carter arrived, Western Michigan University had just fired Dengward. (To put it another way, this Deng Huade is the same Deng Huade who later became the head coach of the Chinese men's basketball team.) Wow, the world says big is big, small is small. ）
Maverick-Carter spent only one year in Kalamazoo, Michigan, before transferring back to Akron. The NCAA stipulates that he needs to be a "ball supervisor" for one year. This year, his interest in basketball waned.
Greater opportunities await Maverick Carter. James decided to give up college and head to the NBA with his talent. Nike waved a check clip around James. At this time, Maverick-Carter became an intern at Nike. When James began his rookie season with the Cavaliers, Maverick-Carter chose to drop out of school to become a Nike junior employee.
"I remember the first time I met Maverick, he was a young African-American who seemed very intelligent and brainy. He was looking for an opportunity. I met him when I first arrived in Cleveland, and I saw his future, so I offered him an internship. "Nike Vice President Merritt became Maverick Carter's Bó Lè.
In less than five years, Maverick Carter went from an intern at Nike to a high-paid CEO of LRMR through a six-figure Nike representative position.
Before founding LRMR, James fired veteran agent Goodwin. This caused an uproar throughout the league and throughout the sports media community. Three inexperienced young blacks surround a child under the age of 24 (Maverick) who is going to manage Jordan's most important basketball player since Jordan. Everything seems so unreal, as if it is a fantasy.
James's natural desire to control
James is a man who is insecure at heart. This personality led him to fire his agent Goodwin and choose to form LRMR with his most trusted childhood friend.
Childhood eventually evolves into a person's lifelong imprint. James's childhood was spent in Akron with his mother Gloria. This became a nightmare for his life.
"I think a big part of it stems from my childhood. I have to be the man in the house as fast as I can. I grew up faster than my peers who had fathers, even children older than me. "As we all know, James lived with his mother since he was a child, and his biological father never appeared in his life.
"When I became a professional, I followed the tradition of signing an agent. Since this is tradition, I will follow the trend. But I didn't find it like to be in charge of the house at age 7. The only way I can regain [that sense of security] is to personally empower the people around me. So, I fired my agent and formed our company, LRMR. I choose people I trust. They grew up with me and I have absolute trust in them. James disclosed the original intention of firing agent Goodwin.
Before founding LRMR, Goodwin helped James secure a $90 million Nike sponsorship deal. However, as the "chosen son" who appeared on the cover of Sports Illustrated in middle school, James does not believe that Goodwin played a pivotal role in this signing.
In 2001, when James was only 16 years old, he was invited to the prestigious ABCD basketball camp. The camp was sponsored by Adidas, but James wore a full Nike outfit. Then he wore a pair of Adidas sneakers to Nike's all-American training camp.
When the media interviewed Wacalo, the director of ABCD basketball camp, he tried to stir up the topic. "The media asked me if I was offended by James' behavior (wearing a full Nike outfit). Offend? Not at all. I would also like to commend him. Because he knows who he is. Vakalo said.
James knows not to put all your eggs in one basket. He always spends his time, increases his options, discovers the best ones, and then signs with a big stroke.
Before the 2003 draft, James didn't give Nike or Adidas any promises. He even gave Reebok the opportunity to bid. Eventually, he signed a $90 million sponsorship deal with Nike. At this time, he had not played a single NBA game.
James' business sense and vision are more than that. American stock god Warren Buffett was impressed by this young man. In 2006, Buffett invited James to participate in the recording of a short film. It's a relatively personal short film that's only used at the annual summit of Buffett's Berkshire Hathaway.
This is completely to give Buffett a favor with no short-term gains. After all, this video will not be played anywhere else. But attending Berkshire Hathaway's annual summit is a huge opportunity. James naturally does not miss such an opportunity.
After climbing Buffett's relationship, James dug deep into this network. He will send his financial statements to Buffett to hear the advice of the old stock god.
Buffett also praised James' business sense. "He is very mature, very savvy in business matters, and smart enough. When I first met him, I was impressed by him. He is more business-savvy than many MBAs I know. He was 21 at the time, and he knew a lot more than I did when I was 21. Buffett said.
From the beginning, James didn't shy away from saying he wanted to be the next billionaire. In sports, "Tiger" Woods is James' benchmark.
Paulo Wacht, James' financial advisor, was well aware of James' ambitions, "I knew LeBron when he was very young. He wants to become a billionaire. But I think his ambitions are much more than that. His ambition is to truly comprehend the world and become an extremely important big man. ”
"In the next 15 to 20 years, I want to be the richest man in the world." This is one of my goals and I aspire to become a billionaire. "That's James's rhetoric.
The sense of control, keen sense of business, and ambition to become rich became the pillars of James' business empire. LRMR is the foundation of this business kingdom.
James told Maverick Carter in his kitchen that he had fired Goodwin. "I knew right away that this friend of mine was in a situation where he needed help. I immediately nodded in agreement. I also think he needs more control. Everything should go in the direction he intended. LeBron is a true entrepreneur, that's fundamental. Maverick Carter said.
It took four friends who grew up together a year and a half to create LRMR and assemble a core team, including a public affairs specialist, a finance officer, a broker who handles agreements, a publicist and a lawyer.
"We have a very large office in Cleveland. It is affiliated with the established brokerage company IMG. The old brokerage model is the salesman model. They will peddle James like a mattress. Selling something is just a deal. We are looking for business partners. Maverick-Carter said.
All four members of LRMR's management are young people in their early 20s. But their business logic and thinking are much higher than their age.
In the traditional brokerage model, a big-name agent has multiple players under his umbrella. He helps with day-to-day matters such as sponsorship contracts, player contracts, etc., and takes commissions. Henry Thomas, Falcao and others are among the best of the brokers.
Even if these agents hold the league's top players, it is difficult to form specialized teams to serve players, deeply bundle with partners, and commercial endorsements and sponsorships have evolved into a fixed model. James wasn't content with that, and from the beginning, LRMR was positioned as more than just a brokerage or marketing company. Their goal is to make James a global icon while deepening his career in the business sector and making James a billionaire. Salaries and business endorsements are not enough to support James to achieve this ambition.
Anatomy of a game endorsement strategy
Holding hands with Microsoft XBOX is the first good card played by LRMR. The clock ticked to 2008, James's career was in full swing, and although he didn't have a championship ring in hand, his status in the business field was close to Kobe's.
Maverick Carter landed some attractive endorsement contracts for James. But in the video game market, James has not yet made any gains.
At that time, video games were on the rise in the United States, Nintendo's WII sales were 13 million, Microsoft's Xbox 360 sales were just under 12 million, and Sony's PlayStation 3 sales were approaching 6 million (it is worth mentioning that the PlayStation 2 is still popular). IN TERMS OF GAME SOFTWARE SALES, THE XBOX 360 HAS SOLD 94 MILLION UNITS, WHILE THE WII AND PLAYSTATION 3 SOFTWARE SALES ARE 73 MILLION AND 31 MILLION UNITS, RESPECTIVELY. Among these games, sports are the crown jewel.
LRMR received three exclusive sponsorship contracts from EA, 2Kgames and Microsoft's XBOX Live. What choice will James make among the three contracts? Let's first look at the terms of these three contracts.
【1、EA】
EA was the first gaming company to offer James a sponsorship contract. In 2008, EA's revenue was $4.7 billion. The company has several games related to basketball, especially the NBA Live, NCAA basketball and NBA streetball series. These games are compatible with all major gaming platforms. It usually sells for $50.
For basketball fans, NBA Live is a game they are very familiar with that simulates the game scenarios of the new season. EA wants to sign James as the cover character of the game for the new season. EA's spokespeople in other sports include "Tiger" Woods, Ronaldo Jr. and others.
EA offered James a two-year contract. The first year, EA paid James $400,000 and the second year $300,000. LRMR has every reason to believe that this offer is higher than what EA pays other spokespeople.
In return, EA wanted James to give them two days to shoot commercials and other promotional materials, as well as attend two press conferences to promote them.
"Being on the cover of an EA game would be a very nice exposure. James's profile will appear in thousands of families. EA is the world's largest video game developer, and being on their cover is an honor for James. But do we just want James' avatar to appear on the game cover without getting any points out of it? This is how Maverick Carter dissected EA's contract for James.
【2、2K Games】
2K Games is part of Take-Two Interactive. In 2007, Take-Two's revenue was close to $100 million. In 2008, EA planned to make an unsuccessful acquisition of Take-Two for $2 billion.
Born in 2005, 2K Games includes a variety of sports games, mainly NBA basketball, MLB baseball, NHL ice hockey, TopSpin tennis, etc., the most popular is basketball games. Its basic situation is similar to that of EA and belongs to the competition.
2K Games wants James to be their ambassador. They also offered contracts for two years, with $300,000 and $350,000 paid upfront for the first and second years. If the game sells more than 4 million units in the first two years, the deal is automatically extended to the third year (James receives another $400,000).
In addition, James will receive an additional bonus for completing different sales goals.
1. In the first year, if 2 million copies of the game are sold, James will receive $500,000; If more than 2.5 million units are sold, James receives another $250,000 in bonuses; If more than 3 million units are sold, James will receive an additional $750,000. This means that if more than 3 million units are sold, James will receive a prize of $1.5 million.
2. In the second year, the threshold for James to receive the bonus has been raised compared to the first year. If sales reach 2.25 million, James receives a $500,000 bonus; Sales reached 2.75 million, and James received another 250,000 bonuses; With more than 3.25 million units sold, James won another $750,000 in prizes.
3) If James' other sponsors promote the game in the corresponding marketing campaign, such as in a Nike commercial in which James plays the game in sneakers, he will make $50,000 each time.
If James can bring advertisers to 2K Games, 2K Games will reward James with $50,000 each time the advertising cost exceeds $400,000.
In return, 2K Games required James to set aside a day for "motion capture" shooting, which they used to gather enough promotional material (such as dialogue, movements, emoticons, etc.), one day for advertising shooting, one day for PR and media, and a number of shorter meetings, interviews, PR and marketing activities.
"There is no doubt that 2K Games has a very good reputation in the minds of fans, and the sales-sharing model is indeed very attractive. It's also a great idea to grafting in other sponsors of athletes. However, we need to consider whether James' time allows (attending so many business events). For the contract offered by 2K Games, Maverick Carter gave this assessment.
[3, Microsoft Xbox Live]
The Xbox 360 is Microsoft's 2nd generation home gaming console. Xbox Live is a multi-user online battle platform with about 15 million users. The cost per user is about $50 a year. Individuals can download games online from $5 to $15.
Microsoft is desperate to build a downloadable game around James. They offered James a guaranteed $250,000 revenue-sharing agreement.
Of all Microsoft's revenue, James has a maximum share of 20%. Specifically: if the game generates less than $1.5 million, James will receive 10% of the revenue; If sales are between $1.5 million and $3 million, James takes 12.5 percent of the revenue. If sales exceed $3 million, 20% of that revenue goes to James.
In addition to revenue, James' team can fully participate in the game, and the game is not necessarily a basketball game. "It can be any type of event designed by James' team." This clause is written into the contract.
James, Maverick Carter, and LRMR had control over the game's release timing and sales strategy. "This contract gives us a lot of flexibility and we can have fun, but at the same time we need to spend more time together and do more." Maverick said.
LATER STORY, AS WE ALL KNOW, JAMES' FINAL CHOICE WAS MICROSOFT'S XBOX. In a sense, the partnership with XBOX is the first major market business that LRMR fully dominates.
JAMES' ACCEPTANCE OF XBOX'S CONTRACT IS BECAUSE XBOX GIVES JAMES ENOUGH SPACE, AND HIS NAME IS NOT LIMITED TO BASKETBALL GAMES, BUT CAN APPEAR IN ALL XBOX'S GAMES. James' team can be more deeply involved in the development, promotion and sales of the game. It's no surprise that James, who has always wanted to take his destiny into his own hands, prefers this offer.
This business practice later became a case study at Harvard Business School. Professor Anita, who is in charge of the subject, affirmed James' choice, "This is the future of sports marketing, and James has made himself a leader in the business field." ”
Of course, James switched to 2K Games in 2013, that's what to say. After LRMR won this order, it won a reputation in the market. A group of hairy lads are beginning to show their business talent, and a business empire named "James" is emerging.
Business empires emerge
Maverick Carter wears blue pants, a gray sweater, a navy trench coat and boots. On his wrist, he wears a $50,000 Audemars Piguet watch.
If you happen to pass by the Mercedes S550 he is riding in, you will think that this young man under 30 years old is an actor, professional athlete, singer.
The young CEO was driving down the bustling streets of Manhattan, New York. In 30 minutes, he will meet with the founder of Believe Entertainment Group.
In the car, he chatted with Jason Locke, the reporter who followed him. "Did I tell you the story between us and our Beats headphones?" Maverick-Carter asked slightly excitedly.
After receiving a negative response, Maverick-Carter recalled, "I was in Los Angeles, with Jimmy Iovine. I talked and laughed with him in his office. That was a few years ago, around 2008. ”
Jimmy Iovine, co-founder of Beats Headphones, is now (2016) an Apple executive in charge of the Apple Music business. He is also a music mogul who has released albums by U2 and Tom Petty.
In music, Jimmy Iovine is the top bearer, but he is opposite a fledgling hairy young man. It was this hairy young man who controlled the whole incident.
I said, "Jimmy, you give me 15 pairs of headphones." He replied, "It's not on the market yet, I'm not sure I have 15 pairs in my office." "Jimmy, give me 15 pairs of headphones and I'll show you how I use them." Maverick-Carter recalled a conversation with Jimmy Iovine.
The story behind is already familiar to many friends. Maverick Carter got 15 pairs of headphones and asked James to give them to the members of the Dream Team as gifts on his flight to Beijing.
Before giving away the headphones, James gave a brief speech reiterating the significance of their trip. This "dream team" is called the "redemption team". Before them, the US men's basketball team has broken in the sand in many competitions such as the Olympic Games and the World Championships, and has missed the championship. James did not forget to use the example of Beats to illustrate the relationship between individual and collective goals.
When the "Redemption Team" arrived in China, an important press conference awaited James, Bryant, Wade, Anthony and Howard.
Throughout the Olympic Games, the "Dream Team" has received a significant amount of attention, with journalists around the world seeing them as their most important interviewees. Countless photographers and videographers were waiting for them at the airport, 15 pairs of new Beats headphones hanging from their heads or necks. The spread effect can be imagined, newspapers, websites, photo agencies are full of pictures of them wearing Beats headphones.
"Maverick's move, and then it came true. In the real business world, this is a rare occurrence. Retelling the story, Jimmy Iovine blurted out this summary.
In James's team's business landscape, this is a story worth a special book. Maverick Carter completed the perfect implant, genius, large-scale, free advertising campaign.
James, of course, wouldn't be advertising for free to the Beats, from which he received a small stake. In 2014, Beats was acquired by Apple for $3 billion. James earned more than $30 million. In the entire history of professional player investment in North America, this is considered to be the highest investment success story involved.
After telling James' story with Beats, he had a heated three-hour discussion with Dan Goodman and Bill Meistern, the two founders of Believe Entertainment Group. They will jointly release the animated film "The James Family".
He then met Harvey Spevak, owner of Equinox Fitness Club. They plan to take the concept of Equinox Fitness Club overseas.
The next afternoon, Maverick-Carter met with the leaders of Suite 850 on his behalf with James. The latter is a brand company and the two parties have verbally reached a partnership. That evening, Maverick Carter met Adam Mendelssohn, a strategic adviser to LRMR, on a train from Manhattan to Boston.
In Boston, James and Maverick Carter are about to hold talks with Red Sox owner John Henry, and millionaire Thomas Werner, a prestigious Hollywood producer.
Soon LRMR will partner with Fenway Sports Management. Fenway Sports Group, the parent company of Fenway Sports Management, is the owner of the Boston Red Sox and Liverpool football team.
This cooperation will be epoch-making. James, Maverick-Carter, two black kids from the small town of Akron, will work with elderly white billionaires like Henry and Werner. And the partnership is not simply about selling shoes, or arranging movie cameos and commercial endorsements for sports stars.
In the summer of 2010, James left Cleveland and "went to South Beach with talent" to form the Big Three with Wade and Bosh in Miami. The event was a sensation, and it was also in the business world. James was criticized for announcing his decision live on ESPN. Marfrik Carter was the leader of the event, which brought in $3 million in revenue for James' team.
In 2011, James became a minority shareholder of Liverpool Club, and the cartoon "The James Family" named after him was launched. Maverick Carter's business talents were gradually recognized by the industry, and he and James gradually came out of the influence of "Decision 1" (the decision four years later could be called "Decision 2").
James and Maverick Carter completed the business puzzle in 2011, and a huge business empire took shape.