In June 2022, NBA star LeBron James became a billionaire. Like many other achievements in his life, this one also had a peculiar element to it: no other active NBA player had achieved the billionaire status before.
King James’ journey to massive wealth started when he was getting ready to enter the league. At the age of 18 James had the foresight, financial wisdom and long-term outlook that is necessary for financial success in life. In his book about LeBron James, Jeff Benedict shares the interesting story of how three major companies, Reebok, adidas AG (OTC:ADDYY) and NIKE, Inc. (NYSE:NKE), were trying to woo James, who was just 18 at that time, to sign a deal with them. The biggest test for James came when Reebok put their $100 million offer on the table but LeBron James’ advisers still recommended him to decline the offer. Think about it. An 18-year old whose family had hitherto lived on food stamps and debt was offered $100 million but he’s asked to decline the offer. James did not resist his advisers and declined Rebook’s offer because he knew his actual worth even before he’d entered the league.
“He Knows What’s About to Come to Him”
To plug Benedict’s words:
LeBron was at a loss for words. He’d just flown in from Akron. He lived in the projects. Their subsidized rent was around $22 a month. His mother was unemployed and had to pay for groceries with food stamps. The check in his hand offered an escape from all of that. It was an instant ticket to a new life. All he had to do was say yes. Gloria was ready to walk out with the check. Goodwin wanted everyone to take a beat. Reebok’s offer was off the charts. And Fireman had made a bold move by putting $10 million on the table. But this was a preemptive bid, one that was intended to preclude LeBron from talking to adidas AG (OTC:ADDYY) and NIKE, Inc. (NYSE:NKE). Goodwin reminded LeBron that the game plan was to meet with all three companies before deciding. Fireman (Reebok CEO) and his team were disappointed. But they couldn’t help being impressed. Todd Krinsky (from Reebok) looked on in amazement as LeBron left Reebok’s headquarters that evening. He’s a man already, Krinsky thought. He knows what’s about to come to him.
Another testament to James’ financial wisdom comes from the story of his acquaintance with Rich Paul, who later became his agent. LeBron James came to know Paul when he hadn’t even entered the league, at the age of 17. When James started his agreement with Cleveland Cavaliers in 2003, he hired Paul for a salary of $48,000 which he thought was an “investment” for the future. New Yorker quotes James as saying:
“I have always felt that he had a purpose, and that’s why I kept him around. I knew he was going to be something more than even what he thought he could possibly be at the time. It was just a feeling I had.”
Precisely this ability of spotting opportunities before they become ripe is what made James a billionaire at the age of 37.
Another important strength of LeBron James is his ability to keep the right people on his side while making key decisions in life. In addition to Rich Paul, other important people who played a role in important business decisions of James include Maverick Carter, who James made sure had a seat on the table while making deals with giants like NIKE, Inc. (NYSE:NKE) and Reebok when he was entering the league.
The biggest headstart for LeBron James obviously came when he signed a deal with NIKE, Inc. (NYSE:NKE) back in 2003. The $90 million deal spanning seven years gave James $10 million at signing. After that wealth just kept coming for King James. It’s also important to note that Reebok was offering James more than NIKE, Inc. (NYSE:NKE) ( a whopping $25 million more), but James, yet again, played a master stroke by going with NIKE, Inc. (NYSE:NKE) as he knew that having Nike on his side would open many new opportunities for him later. That’s exactly what happened. A 2014 report from GQ said James made $300 million from LeBron 11 trainer shoes alone.
Another obvious source of his wealth was NBA, where he remains the highest-paid player with an estimated earnings of $528 million.
In the rest of the article, though, our focus would be the companies and specific investments which gave a significant boost to James’ wealth.
LeBron James Investment Portfolio: How He Became a Billionaire
In this article, we take a look at some of the companies that played a key role in LeBron James’ path to wealth building and financial success. We picked companies which had/have partnerships with LeBron James, the ones in which he’d invested in and those which he started and later sold.
LeBron James Investment Portfolio: How He Became a Billionaire
10. Tonal
In 2021, LeBron James joined Home gym equipment company Tonal as a brand partner and investor. Tonal was founded back in 2015. It has struggled to live up to the hype since its valuation has dropped to between $550 million and $600 million from a whopping $1.6 billion seen in 2021, according to a Wall Street Journal report. Tonal recently raised about $130 million in fresh funding from its existing investors. Tonal also announced a leadership change. Its new CEO will be Krystal Zell, who previously served as president of the company.
In addition to LeBron James, some other notable figures who have invested in Tonal in the past include Stephen Curry and tennis star Serena Williams. Amazon.com, Inc. (NASDAQ:AMZN)’s Alexa Fund was also a Tonal investor.
In 2021, LeBron James bid farewell for The Coca-Cola Company (NYSE:KO) after 18 long years as he came on board with PepsiCo, Inc. (NYSE:PEP). James’ deal with PepsiCo, Inc. (NYSE:PEP) was initially about the company’s Mountain Dew’s new energy drink line. However, PepsiCo, Inc. (NYSE:PEP) said that the partnership will span a variety of products and segments, including the snacks category.
PepsiCo, Inc. (NYSE:PEP) has been a notable donor to curb racial problems in America. PepsiCo, Inc. (NYSE:PEP) has over the past few years donated millions of dollars to different organizations working for related causes.
PepsiCo, Inc. (NYSE:PEP) is also one of the most notable investments of elite hedge funds. Out of the 943 hedge funds tracked by Insider Monkey as of the end of the first quarter of 2023, 70 hedge funds had stakes in PepsiCo, Inc. (NYSE:PEP). The biggest stakeholder of PepsiCo, Inc. (NYSE:PEP) during this period was Terry Smith’s Fundsmith LLP which owned a $1.2 billion stake in the company.
8. Epic Games
Epic Games, the American video game company behind Fortnite, in 2021 bought a minority stake in LeBron James’ media company SpringHill Co. along with NIKE, Inc. (NYSE:NKE), RedBird Capital Partners and Fenway Sports Group.
Interestingly, LeBron James is reportedly a big fan of the Fortnite game and the game also features a special LeBron James skin. The skin allows players to dress their character in the Nike LeBron shoes and also shows different famous items from LeBron’s trademark outfit.
7. Beats
LeBron James’ lucrative proceeds from his investment in Beats is an embodiment of his business foresight. Back in 2008 when hardly anyone knew about Beats Electronics King James had invested in the audio products company in exchange for a small stake in the company. All he had to do was to promote the product by wearing Beats headphones publicly. Fast forward to 2014 and Apple decides to buy Beats Electronics for an eye-popping $3.2 billion. Guess who had a payday? According to some reports, King James made about $30 million as a result this Apple’s acquisition.
LeBron James’ friend Kendrick Perkins has also claimed that James made a $700 million from Beats. In an interview, Perkins said:
“The crazy thing to me about LeBron James is that he is the chosen one in life,” said Perkins. “I tell him all the time ‘I really hate you. I hate you!’ And he’ll be like ‘What you mean, Perk?!’ ‘I hate you because everything you touch turns into gold!”
Partnerships between King James and NIKE, Inc. (NYSE:NKE) date back a long time and spans a variety of areas. NIKE, Inc. (NYSE:NKE) signed James in 2003 even before he entered the league. In 2015, NIKE, Inc. (NYSE:NKE) signed a lifetime deal with LeBron James. Some reports claim the deal was valued at anywhere between $500 million to $1 billion. The biggest face of their partnership is LeBron James signature NIKE, Inc. (NYSE:NKE) shoes. NIKE, Inc. (NYSE:NKE) also invested in James’ media company SpringHill Co.
Hedge fund sentiment for NIKE, Inc. (NYSE:NKE) jumped in the first quarter. Insider Monkey’s database of 943 funds shows that 81 hedge funds reported owning stakes in NIKE, Inc. (NYSE:NKE) as of the end of March, up from 71 funds in the previous quarter.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
