LeBron James Signs Unprecedented Lifetime Contract With Nike

LeBron James will be in the Nike stable for the rest of his basketball career -- and beyond.

The world’s largest sporting goods company signed the four-time NBA MVP to an unprecedented lifetime contract on Monday. Terms of the deal weren’t released, but sports agent David Falk, who represented Michael Jordan for most of his playing career, estimated its value at $400 million to $500 million.

Nike said in a statement that the 30-year-old Cleveland Cavaliers forward provides “significant value to our business, brand and shareholders.”

Nike signed James after he went pro out of high school in 2003. His first contract spanned seven years and was worth $90 million, according to ESPN, with a seven-year extension in 2010. Nike has released at least 13 versions of James’s signature shoes.

What kind of return does Nike get from the deal with James? That depends how you measure, said Matt Powell, an analyst at research firm NPD Group. If you go by what James brings in through sales, versus what they’re paying him, Nike is probably losing money, he said.

“But he’s the face of the brand, and he’s the most popular player in the league, so it makes sense,” Powell said.

Blaze Pizza

James let lapse his endorsement deal with McDonald’s Corp. this year, instead throwing his weight behind the Blaze Pizza chain, in which he’s an investor. Last week James’s multimedia venture, called Uninterrupted, secured a $15.8 million investment from Warner Bros. Entertainment and Turner Sports.

His lifetime deal with Nike could eventually become something similar to Michael Jordan’s. Jordan, 52, is officially the chief executive officer of the Jordan Brand, which continues to release new shoes. Sales of Air Jordan brand shoes topped $2.6 billion last year, according to Forbes.

Athlete endorsement contracts have exploded in the past few years. In 2014, after a bidding war with Under Armour Inc., Nike extended Oklahoma City Thunder forward Kevin Durant on a 10-year, $300 million deal. Houston Rockets guard James Harden left Nike before the season for a 13-year, $200 million contract with Adidas AG.

Such an open-ended deal is very rare. Soccer star David Beckham reportedly has a lifetime deal with Adidas, according to ESPN. Allen Iverson at one time signed with Reebok in what the Associated Press called a “lifetime deal,” although those sometimes refer to a player’s career, not his mortality.

A former NBA rookie of the year, James has averaged 27.3 points, 7.2 rebounds and 6.9 assists per game in his 13-year career. He’s won two NBA titles, been to four other Finals, and won two Olympic gold medals.

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