Lebron James Wants to Make $1 Billion in China

Lebron James Wants to Make $1 Billion in China
May 26, 2009 By Fred Dintenfass , eChinacities.com

Yesterday’s article WHAM! The First Western Band in China covered Wham!’s efforts to become the first western band to play in China. Wham! came to China because they wanted to become the biggest band in the world, in just 2 years. In the early years of an incredible career, basketball superstar Lebron James has declared a similar wish: to become the world’s first “billionaire athlete.” In the same way Wham! used China to catapult their already burgeoning career James hopes to use the Chinese market to propel him to even greater heights. Just like Wham!, almost 25 years before, James’ efforts haven’t always met with success. At the same time China’s opening up has made it easier for foreign companies and products to succeed in China, China’s greater influence as an international market and political force has made the consequences of upsetting Chinese officials or consumers much greater.

This week, a Chinese investment group is proposing to become minority owners of the Cleveland Cavaliers. Jian Huahuang, a Chinese businessman who has been involved with brokering deals with the New York Yankees and other American sports franchises, is leading an effort to purchase up to 15% of the management company that owns and runs the team and their arena. Every report of the deal talks about the effect this might have on James’ decision when he becomes a free agent in 2010. Many speculate that James – one of the hottest players in the NBA, and a Ohio native – will strike out for a larger market and a more winning team. However, most recent estimations regard the deal as a good way to keep James in Cleveland. If the deal goes through the team will be able to offer him a higher salary and the Chinese connection will grant him better access to the world’s largest emerging market for basketball. Over 300 million people in China play basketball, almost as many as the entire US population, and Kobe and Lebron were ubiquitous even before the summer Olympics.

Lebron james seeks billions in china
Photo: Keith Allison

Despite the success of homegrown Yao Ming and the lesser success of Yi Jianlian, the most popular basketball player in China – and by extension perhaps, the world – is Kobe Bryant. Last year, I polished subtitles for a short video that. though written by a college aged man, sounded like a love letter to Kobe written by a 14 year old girl, complimenting him repeatedly on his handsomeness, hoping Kobe bears a son this year, and pleading for Kobe to return to China. James is hoping to supplant Kobe as China’s favorite b-baller and parlay his Nike sponsorships into bigger endorsement deals that will lead to billions. James claims to have been learning Mandarin so he could do interviews by 2008 (it’s not clear whether or not that ever occurred or if he is continuing the lessons) and has already made four trips to China. There are rumors he is buying a house in Beijing. “You have to think globally,” James has said, “I have a lot of fans in China, and they’re important to me.” Chinese fans return the love, “I want to shout and shout for him and watch his game,” said a Chinese teenager named Guo, with James’ initials painted on to his arm, “I’m proud of watching him play. I’m mad about him.” For some, James is more than just a basketball player, he’s a symbol of a way of life “I think he is more than an individual. He has started a new craze around the world,” Guo continues, “I will support him like I’ll cry for China at the Olympics.” Huang Risheng, writer for China’s Titan sports newspaper says, “The Chinese are looking for individual heroes,” he says, explaining James’ reception by Chinese fans, “We are not open enough, not extroverted enough. We like the individual effort, just one man saving the whole team like James.”

Revenue from basketball in China has grown 10 times in the last five years to a projected 1 billion USD this year. James, who currently makes 23 million a year, is looking to surpass Tiger Woods (with whom he shares a birthday), who’s yearly income is now around 73 million US Dollars. James has a massive 7 year, 90 million dollar endorsement deal with Nike which he signed right out of high school and the deal has played a major part in his popularity in China, as well as caused him some problems with Chinese fans.

Lebron james shakes hands with George w bush in beijing, China
Photo: White House

Although his Nike ads are now met with enthusiasm in China, his first ad, in 2004, featuring a cartoon James battling a kung fu master was banned for insulting national dignity. “Chamber of Fear” featured James, then a rookie, overcoming the kung fu master, two traditionally attired Chinese women, and a pair of dragons, causing the State Administration for Radio, Film and Television to snap back “it goes against all rules that require ads not to contain content that blasphemes national practices and cultures.” 19 year old James was disappointed in the banning of the ad for violating “regulations that mandate all advertisements in China should uphold national dignity and interest and respect the motherland’s culture.” “It was not intended to hurt anybody or any culture,” said James, “We put the ad together basically for kids.” Even then he was mindful of the affect this would have on his foreign fan base, “That’s big,” he said of the banning of the ad, “I need as much fans as I can get.”

 
James also received heat from non-Chinese fans in the run up to the 2008 Olympics, where James led the US ‘redeem team’ back to the winner’s podium. Cavaliers teammate Ira Newble drafted an open letter to the Chinese government condemning its role in the Darfurian genocide. Except for James and Damon James, every member of the Cavaliers signed it. Jones is sponsored by a Chinese shoe and clothing company and James’ sponsor Nike, is heavily invested in China. James received considerable flack from fans who didn’t buy his position that he didn’t have enough information to have a take on issue and accused him of being in China’s pocket. James eventually sat down with ESPN and explained that while he still hasn’t signed the letter, he cares about the issue and “if I’m asked the question, I will definitely answer it.” “At the end of the day we’re talking about human rights here” James told ESPN, “and people should understand that human rights and people’s lives are in jeopardy. We’re not talking about contracts here. We’re not talking about money. We’re talking about people’s lives being lost and that means a lot more to me than some money or contract.”

Lebron james shoots over yao ming, beijing Olympics, china
Photo: White House

For the moment, there’s no doubt James is a rising star, at home and abroad, and he clearly has his sights set on China’s ever growing market for basketball. It will be interesting to see if James is able to stay out of hot water in China, and still satisfy fans back home who expect him to take a stand on certain issues. China can make your reputation and China can make you millions of dollars, maybe even the billion James is shooting for, but it can also dull certain impulses. Hilary Clinton and Nancy Pelosi both kept their mouths shut on recent trips about issues they’d previously spoken out against emphatically.

Unlike Pelosi or Clinton, there is already a museum dedicated to Lebron in Shanghai that features a copy of his birth certificate and childhood photos of James. Will his star power be enough to keep him from falling into the pitfalls that can be so difficult for foreigners to anticipate? Can he make a billion dollars without China? Currently James is running one of his trademark offences on China, but there’s no assurance that his effort to become the world’s first billionaire athlete will be a slam dunk.

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Related Links

Were the Olympics Worth It?
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Breaking Olympic Dreams: The Tragedy of Liu Yan
Yao Ming tops Chinese celebrity list again

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