Originally Posted by
DubA169
[h2]
What The Knicks Just Told LeBron: Come To New York And Make $1 Billion[/h2]
Steven BertoniBio |
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Steven Bertoni is a Global Wealth reporter for Forbes.
TheKnicks just finished pitching LeBron James. Their main selling point:You could make a billion dollars playing in New York. You can't earnanything close to that anywhere else.
To make the case, they commissioned a study from marketing consultant Interbrand (See the powerpoint below--
hit "full screen" to view.)that says LeBron could earn close to $1 billion over his lifetime insalary and endorsements if he makes Madison Square Garden his permanenthome--their high-end estimate sees him earning as much as $2 billion.That outshines the estimated $700 million he’d likely earn inCleveland, the $690 million in Chicago, and $600 million in Miami.
It’s a crafty attack that goes right after their rivals' bestcase for nabbing LeBron: that his brand is so internationallyrecognizable, where he plays has little influence on his overallearnings. In fact, the same study claims that any generic free agentcould see his lifetime earnings jump 30% by signing with the Knicks.
To come up with the numbers for the Knicks, Interbrand says it ranthrough 50,000 computer models of a potential LeBron career, using morethan 200 variables like individual performance, fan demographics andchampionships. The report is light on the details of its methodology,but comes to this conclusion: LeBron has a 50% chance of earning atleast $1 billion in New York. In Cleveland and Chicago the odds fall to1%. The study put a 0% chance of LeBron making $1 billion playing forMiami.
Included in Interbrand's math: an NBA title in New York could beworth $240 million to LeBron, about $60 million more than if he broughta ring home to Cleveland, and more than double the value of a Chicagochampionship. Why? NYC is a huge market, the business capital of theworld and home to a large (and wealthy) fan base hungry for a winningteam--the Knicks haven’t held the title since 1973. LeBronalready owns Cleveland, a small city with little clout. MichaelJordan’s six championships still hover over Chicago. Miami has afickle fan base, a recent title and its own superstar in Dwayne Wade.
Over the past year, Forbes estimates that LeBron earned $43 millionin salary and endorsements (including Nike, State Farm Insurance, Coke,McDonalds and Upper Deck) playing for small market Cleveland. Goodmoney, but a billion dollars it is not.
i know, i know. people on NT are smarter than people who work for Forbes. This is a blatant lie. The digital age has destroyed the big city market