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Thursday, July 1, 2010

Where is LeBron James Going?


The NBA free agency season is upon us, and the talk of the league centers on LeBron James and where he's headed to next -Chicago, Cleveland, New York or Miami?
One story within that discussion is the possibility of James joining Dwayne Wade(also a free agent) on the Miami Heat team. A potentially mutually beneficial move that involves sacrifices, economics, and unimaginable potential earnings on the endorsement front. If James intends on winning a championship(s) -- he must ask himself, 'is Cleveland the place for that to happen?' if the Cavaliers short comings in the playoffs are any indicator of the furture, Miami may be his ticket.
But James doesn't touch the shores of South Beach without sacrifice. Primarily, ot would be necessary for his loyalty to Cleveland to take a back seat for winning sake. Kevin Garnett is an example of someone who stuck with Minnesota out of loyalty and failed short of the ultimate win -- until his arrival in Boston. Secondly, Miami's $43 million of availble capital could turn into $49 million with a trade of Michael Beasley for monetary rights to another team, freeing $6 million. Toronto Raptors free agent Chris Bosh could then sign on for $13 million.
The most strategic move for all three proposed free agents would be to take a salary cut, accepting $13 million instead of $16 million, creating $10 million of cap space to lure a key role player. If this were to happen, everyone's endorsements would peak. Collectively, the earning potential of the team's collaborative endorsements could literally change the landscape of athletic endorsements. The sum total of James and Wade's following boasts unlimited brand loyalty and together the could redefine the manner in which athletics and commerce are combined.

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