LeBron James is a transcendent basketball talent because his skills are so wide-ranging. He’s a 6-foot-8 forward who can defend bulky centers and still dribble around lithe guards on a fast-break. He transcends the court, too, and can make the sports world hold its breath even when he’s not playing, as we saw again in awaiting the announcement James would return to Cleveland.
After entering the NBA straight out of high school and making his debut in 2003, he’s displayed savvy in another area in which so many other elite athletes have failed: his finances.
James has never been the highest paid player on his team. During his seven years in Cleveland, James was always the second-highest paid player or even lower on the list, including three seasons at fifth-highest. In his four seasons in Miami, James was tied for the top salary on the team. He was paid at least $14 million each of his four years in Miami, including $19 million in 2013-14.
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So, here’s where the financial smarts come in. After opting out of his contract with Miami at the conclusion of this past season, James didn’t rush into a four-year maximum deal worth more than $88 million with his hometown Cavaliers.
Instead, the league’s top player took a two-year, $42.2 million deal, ensuring that as the salary cap rises roughly 7 to 10 percent a year, he can opt-out and renegotiate in the future. In 2016, a new NBA television deal will start and the salary cap may rise even higher, providing James an optimal time to sign a max deal.
James’ NBA money pales in comparison to his endorsement earnings. After all, he set a precedent with a 7-year, $90 million Nike pact before his rookie season and added deals with Coca-Cola, Upper Deck and others that season.
Related: How Michael Jordan Made His $1 Billion
Since then, he’s signed with Samsung, McDonald’s and Dunkin Brands. Among his investments is a minority ownership in the Liverpool Football Club, a British soccer team he bought into as part of a deal with Fenway Sports Group.
James, 29 years old, even earned praise from Warren Buffett, who told the Miami Herald, “LeBron’s not initially really talkative. He’s savvy. He’s smart about financial matters. It’s amazing to me the maturity he exhibits. I know that if I had been famous at that age, I would have trouble keeping my feet on the ground.”
Sportswriters have developed an obsession with discussing James’ maturity. Whether or not he’s truly wise beyond his years, everyone can agree James made the right choice by not hosting another decision during his free agency this time. His contract with the Cavaliers looks even smarter.
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