LeBron Is Failing To Fill Jordan’s Nike Shoes

After seven years, LeBron James continues to struggle to fill Michael Jordan's shoes (Image via lsnfashions)

Nike just renewed its seven-year, $93 million, 2003 contract with LeBron James.

But as Kurt Badenhausen at Forbes points out, it’s likely James “didn’t get much of a raise from Nike as sales of his shoes have not been the blockbuster Nike hoped for when they signed him in 2003.”

When Nike signed James, it was undoubtedly looking to build a viable successor to its Jordan brand, which is one of the most recognizable – and most profitable – brands in the world.

Air Jordan is a billion dollar brand for Nike. (Image via Both Sides of the Table)

The Nike/Michael Jordan brand now makes up roughly 5 percent of Nike’s overall revenues.  It has a 10.8 share of the overall US shoe market (making it the second largest brand in the country), and 75 percent of basketball shoes sold in the United States are Jordans.  Nike’s other brands – including LeBron James’ and Kobe Bryant’s shoe lines – account for less than 20 percent of the basketball shoe market, according to Badenhausen.

James seemed like the perfect player to start his own billion dollar brand with the apparel company.  He earned more than $40 million in sponsorship deals last year, and that number is likely to increase with new deals such as his recent McDonald’s endorsement.

He has no problem selling tickets, but so far James’ shoes have been a flop.  James is retiring his #23 jersey in honor of Jordan’s success — is it time to retire his Nike line too?

The Real Deal: Lebron James, Michael Jordan, And Jersey #23

LeBron James is switching his jersey from #23 to #6 out of respect for Michael Jordan (image via Melrose)

True to form, LeBron James made a huge deal about changing his jersey number from 23 to 6.

James chalked it up to respect for Michael Jordan, who famously donned a 23 jersey when he dominated the NBA. But many fans felt James was being insincere and just looking to cash in on even more jersey sales.

This argument is exemplified by the fact that number six was worn by 11-time titleist Bill Russell and his fellow NBA superstar Julius Erving.

But as it turns out, James won’t be making any extra income from the jersey switch.

According to CNBC’s Darren Rovell:

In the NBA, unlike the NFL, the money made from jersey sales and other licensed products has been shared equally since the 1995 group licensing agreement was put together by the union.That means that LeBron’s teammate Anderson Varejao makes as much as LeBron, even though sales of James’ jersey ranks second in the league and Varejao isn’t close to the top 50.

But just because James won’t be breaking the bank off his licensed gear, it doesn’t mean the switch to number six can’t pay off.  James has an extremely successful line of basketball clothing and shoes with Nike, that features his “L23″ logo.

If that image changes to “L6″ diehard James fans will surely be eager to get in on the action.

Watch Sports Center to learn more about LeBron James’ recent jersey switch>

With The Exception of Tiger Woods, Sponsorships Remain A Good Business

Tiger Woods and his sponsors have had a rough few months, but as a whole, the sports sponsorship market did considerably well last year.

Gatorade dropped Woods, but overall sports sponsorships are strong (image via tigerwoodsaccident.com)

While Nike and EA Games have stood by Woods’ side throughout his drawn out ordeal, Gatorade, Accenture, and AT&T dropped their sponsorship deals with the number one golfer.

But according to The World Sponsorship Monitor Annual Review,  sports sponsorships remained relatively stable between 2008 and 2009, Sports Business reports.

The report states that athletic sponsorship deals are still the most popular, accounting for 88% of all endorsements.

Including McDonald’s recent deal with LeBron James,  sports sponsorships actually rose 15% in 2009 compared to 2008.

And despite the Woods fatalities, the number of dropped endorsements remained the same at 8%, according to Sports Business.

Taking into account the decline in advertising due to the recession, these numbers indicate a strong market that could surge in the next few years.

For athletes looking to supplement their athletic endeavors with extra income and for corporations seeking to build their brand to a broader base, this speaks well for the future.

McDonald’s Bets on LeBron’s Past

LeBron James inks endorsement deal with McDonald's (http://bit.ly/cKEPV0)

McDonald’s took a calculated risk when it signed LeBron James as its next celebrity sponsor.

Sponsorship deals were sparse for athletes last year.  The recession forced corporations to cut back on superfluous spending.  Scandals by athletes such as Tiger Woods and Serena Williams also led to serious hesitations by advertisers.

This lack of corporate sponsorships seems to be continuing in 2010 – though not for McDonald’s. The fast-food chain just inked a deal with Cleveland Cavalier forward LeBron James.

To kick off this partnership, James will appear in the remake of an iconic 1993 Super Bowl commercial featuring Michael Jordan and Larry Bird, according to The Wall Street Journal.

In addition, the NBA star will also rack up a number of public appearances.  Among other events, James will show at this year’s McDonald’s All American High School Basketball Games.

This is fitting, as McDonald’s and James were first introduced when James starred on the high school All-American team.  It is this long history that likely sealed the deal for the global burger chain.

“All we can do is look at the past behavior and hope that will be a future indicator of what that person is going to be like,” Peter Sterling, vice president of marketing for McDonald’s USA, told The Wall Street Journal.

“He’s got a passion for what he does, he’s family oriented, he’s community-minded, and he’s charitable.”

Sounds a bit like a pre-November Tiger Woods.  But McDonald’s will be prepared, as the contract will be sure to have a huge morals clause.  A few years ago, the corporation parted ways with James’ fellow NBA star Kobe Bryant when he faced rape allegations.

“We only sign with athletes that we believe have a good fit with the brand,” Sterling said. “We haven’t done a lot of these recently.  That’s not because of Tiger, but the Tiger Woods situation has certainly shined a spotlight on this.”

While both McDonald’s and James will likely make millions of this deal, the real winners are the fans, who get to see more of James and the endless entertainment he provides.