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LeBron refused a $10 million check
Why Reebok Flew In
The teenager was LeBron James, and every shoe company wanted him. Reebok's founder, Paul Fireman, flew from New York to Boston to meet him there, with his marketing adviser Steve Stoute along for the trip. Stoute had pushed a move from the record business: put the advance on the table on the spot.
The $10 Million Offer
Fireman couldn't get his company to cut a check that fast, so he called his wife, and she wrote a personal check for $10 million. A driver was holding it when the plane landed. In the meeting, Fireman told LeBron that Adidas and then Nike would each offer $100 million, that Reebok would match whichever deal he took, and that a $10 million signing bonus was his right then if he skipped those meetings.
LeBron's Answer
LeBron sat with his mother and his agent, and he was the one making the decision. He asked for some room, and Fireman and Stoute waited in another room, guessing he would say yes. When they came back, the answer was no. He was taking the other meetings, and the next morning he was back in homeroom in Akron.
Why do brands chase athletes before they turn pro?
A price set before an athlete plays a pro game is based on potential, so a brand can lock in a rate before results push it up. Nike did this with Michael Jordan in 1984, before his first NBA season, and the Air Jordan line launched the following year. LeBron James went straight from St. Vincent-St. Mary High School in Akron to the NBA as the first pick of the 2003 draft. Brands were bidding on him months before he played a professional game.
How are sneaker endorsement deals paid out?
Most pair a guaranteed yearly fee with bonuses for milestones such as All-Star selections or championships. A star with a signature shoe often earns a royalty on each pair sold, which can eventually outweigh the guaranteed fee. A signing bonus is a lump sum paid up front when the contract begins. Jordan Brand, built around Michael Jordan's signature line, now operates as its own division within Nike.
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