LeBron James became the first active NBA player to reach billionaire status last month. James increased his seven-figure earnings through investments, basketball-related contracts and endorsement deals over the years. Now, the four-time MVP has nearly completed a 10-year plan to own an NBA team in Las Vegas. Below, we’ll go inside LeBron James’ plan to own an NBA team in Las Vegas, Nevada.
A Decade of Chess Moves: Inside LeBron James’ Plans to Own an NBA Team in Las Vegas
According to Joe Pompliano, the four-time champion is more than capable of owing an NBA team in the upcoming future. But as explained by the entrepreneur and investor, being a billionaire alone is not enough to own a professional sports team. It takes patience, time and resources. Check out how James’ dream could become a reality in the coming years.
LeBron James’ net worth by business
- Cash and Investments: $500 million
- Spring Hill Company: $300 million
- Fenway Sports Group: $90 million
- Real Estate: $80 million
- Blaze Pizza: $30 million
Not including contract incentives and endorsement deals, LeBron James has earned roughly $350 million off NBA contracts alone. On Dec. 3, 2020, the star forward signed a two-year, $85 million extension with the Lakers. Based on his NBA salaries over the past three years, James is earning a higher income on the Lakers than during his playing days with the Cavaliers or Heat.
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It will cost James over $3 billion to own an NBA team
Next, if James is serious about owning an NBA team, he’ll need more than a billion dollars to make it happen. Per Pompliano, NBA commissioner Adam Silver is working towards expanding the league to other American markets.
Las Vegas and Seattle will receive an NBA team at some point, and the expansion fee for owners is well over $3 billion. By himself, James would never be able to afford to buy a team. Though, Fenway Sports Group could help him out.
Fenway Sports Group owns four main assets
Furthermore, Fenway Sports Group is a holding company for professional sports assets. In addition to being the parent company of the Boston Red Sox, the group also owns the Pittsburgh Penguins, Fenway Park, Liverpool FC and Anfield. FSG was founded in 2001 as New England Sports Ventures (NESV).
Anyway, LeBron has been a proud FSG partner since 2011. In March 2021, James also became part owner of the Red Sox. Since the 18-time NBA All-Star would need financial assistance to own a team, FSG could theoretically work with him to purchase a franchise.
LeBron James agreed to a 2% stake in Liverpool FC
Instead of James selling his marketing rights to FSG for extra cash, he decided to accept a 2% stake in Liverpool FC. Looking back on his decision, this was the correct move. In 2011, James bought the stake for £4.7 million, which is approximately $5,660,940. Now, the stake is almost worth $100 million today.
Liverpool FC’s value has increased from $500 million to $4.5 billion
Moreover, while Manchester United is still valued at a higher amount, Liverpool FC is still one of the most valuable soccer clubs in the English Premier League. Liverpool FC has won 19 league championships and nine League Cups.
Also, the club’s value has increased from $500 million to $4.5 billion over the years. LeBron’s 2% stake was worth $6.5 million back in 2011. Nowadays, his stake is valued at $90 million.
FSG raised $750 million in 2021
Last year, FSG raised about $750 million by selling 10% of its private sports group to RedBird Capital. After the deal was complete, LeBron became a proud partner of FSG. Then, James decided to convert his 2% ownership stake in Liverpool FC into a 1% stake for FSG. The reason the four-time Finals MVP chose to transfer his ownership stake is explained below.
Why did LeBron James transfer his 2% ownership stake into a 1% stake?
Compared to a 1% stake in FSG, James was well aware that the equity value of a 2% stake in Liverpool was identical at $90 million. As a result of his business decision, he became the co-owner of all FSG assets, such as the Red Sox and Liverpool FC. It was a win-win situation for LeBron.
FSG raised $750 million to obtain additional professional sports teams
FSG bought a controlling stake in the Pittsburgh Penguins for nearly $900 million. Since they own a controlling stake in an NHL team, the group’s next goal is to add an NBA team to the company’s assets.
Needless to say, this would work out best with LeBron’s help. But when will Las Vegas get an NBA team? Although it’s on the agenda, there is no future date set just yet. Everything takes time.
FSG passed on the chance to own the Minnesota Timberwolves
Glen Taylor is the current owner of the Minnesota Timberwolves. He bought the team in 1994 for $94 million. Plus, retired MLB star Alex Rodriguez and entrepreneur Marc Lore joined the ownership group in 2021. Per Forbes, the NBA franchise is valued at $1.4 billion.
FSG had the opportunity to buy a controlling stake in the Timberwolves, but maybe the company has a bigger plan in mind. Perhaps the group is waiting for an expansion team to arrive in Las Vegas. Of course, LeBron would help FSG buy that expansion team in the future.
It wouldn’t hurt to continue saving
Lastly, LeBron has done a fantastic job of turning millions into a billion. Finding the right loopholes and taking the right risks when needed have benefited James. Equity ownership has paid off for King James in the long run. Though, time is money.
It should go without saying that owning an NBA team is expensive. When an NBA franchise comes to Las Vegas, FSG and James cannot hesitate to put in a bid. This 10-year plan is full of possibilities. Other articles related to LeBron James are on the main page.
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