****The Everything LaVar Ball Thread****

[shogun]

Team up with starbury and try to get some of the Chinese market. They love marbury over there.

 

[ahat]

Isn't dude who owns Ewing Athletics a NTer ? Would love for him to come in here and drop a couple gems

Biglescobar a lie?

 

[esydc]

Rockdeep and Lavar Ball meeting is inevitable at this point.

 

[whywesteppin]

business isn't a zero sum game.

a contract can be mutually beneficial to both parties. both sides are free to choose whether they enter a contract. LeBron did not get duped or "pimped" into signing with Nike. neither did any NBA player who spent 5 minutes getting a legit lawyer. the only people who get "pimped" are those who try to go it alone.

i think people are conflating nba endorsements with college basketball. in college it is more like "pimping" because you aren't really given a choice and the college or others can profit off you. you aren't left much negotiating room other than leaving.

 

[handullz]

I don't get why this is so hard for people to grasp that LBJ is underpaid.

Y'all keep bringing up back office functions like that takes up the entire price of the shoe when viewing it from a unit economics standpoint.

LBJ shoes are $180.

Y'all fully believe if you were to breakdown where every cent goes, then there isn't a substantial amount of dollars that could essentially be recaptured by LBJ?



Of course back office and distribution is eating up a chunk of the shoe cost.

But I'm confident in saying LBJ does NOT need the massive marketing spend AND executive compensation that's cooked into the price of the shoe.

Why can't LBJ find a distribution partner that white label's shoes, slap his name on it and charge 120?

And recapture that wasted mark-up?

That's what BBB is trying to do.

 

[Cashflow]

business isn't a zero sum game.

a contract can be mutually beneficial to both parties. both sides are free to choose whether they enter a contract. LeBron did not get duped or "pimped" into signing with Nike. neither did any NBA player who spent 5 minutes getting a legit lawyer. the only people who get "pimped" are those who try to go it alone.

i think people are conflating nba endorsements with college basketball. in college it is more like "pimping" because you aren't really given a choice and the college or others can profit off you. you aren't left much negotiating room other than leaving.

Judging by your comments that means you believe all entreprenuers are getting "pimped."

Am I understanding you correctly?

 

[biggie62]

Nike is a public company. They have an obligations essentially to seek growth and a return on investment for not only their shareholders but everyone involved up and down because they deserve something for their work. Lebron can't demand 50% of that share because there wouldn't be enough to go around. I want one of y'all start an urban brand, give a rapper 75% of the sales and see how you do financially.

Those of you who don't have a background in business don't understand how businesses function. Especially public companies.

And yes those background functions are expensive enough where they'll eat up 75%+ of that 180 per shoe.

 

[handullz]

Nike is a public company. They have an obligations essentially to seek growth and a return on investment for not only their shareholders but everyone involved up and down because they deserve something for their work. Lebron can't demand 50% of that share because there wouldn't be enough to go around. I want one of y'all start an urban brand, give a rapper 75% of the sales and see how you do financially.

Those of you who don't have a background in business don't understand how businesses function. Especially public companies.

And yes those background functions are expensive enough where they'll eat up 75%+ of that 180 per shoe.

You don't understand business if you think a multi billion dollar, S&P 500 company doesn't have a high degree of excess dollars cooked into the unit economics of their products.

Again, all they're trying to do is recapture wasted dollars in the price of the shoe. There are dozens of companies that can absolute replace accounting, distribution, and other back office functions.

The margin on that may be thinner because you're smaller.

But you're allowed to pay more due to the fluff being eradicated when its brought in house.

No one in here has ran the analysis so anyone could be right. There is an ultimate tipping point between going out on your own vs signing with an established company

But to assume that the only way to maximize money is to be an endorser is crazy.

 

[biggie62]

Nike is a public company. They have an obligations essentially to seek growth and a return on investment for not only their shareholders but everyone involved up and down because they deserve something for their work. Lebron can't demand 50% of that share because there wouldn't be enough to go around. I want one of y'all start an urban brand, give a rapper 75% of the sales and see how you do financially.

Those of you who don't have a background in business don't understand how businesses function. Especially public companies.

And yes those background functions are expensive enough where they'll eat up 75%+ of that 180 per shoe.

You don't understand business if you think a multi billion dollar, S&P 500 company doesn't have a high degree of excess dollars cooked into the unit economics of their products.

Again, all they're trying to do is recapture wasted dollars in the price of the shoe. There are dozens of companies that can absolute replace accounting, distribution, and other back office functions.

The margin on that may be thinner because you're smaller.

But you're allowed to pay more due to the fluff being eradicated when its brought in house.

No one in here has ran the analysis so anyone could be right. There is an ultimate tipping point between going out on your own vs signing with an established company

But to assume that the only way to maximize money is to be an endorser is crazy.

Well then if you want that analysis then let's analyze how much % of that 8 billion in last quarter of revenue was Lebron actually responsible for? Like people make so many hyperboles as if basketball is their only sport. Nike is involved in every sport practically so break that down because people automatically think as if that is their main revenue stream. Their golf clothing probably has higher margins for example. People are taking too much of a simple minded approach to all of this.

 

[whywesteppin]

business isn't a zero sum game.

a contract can be mutually beneficial to both parties. both sides are free to choose whether they enter a contract. LeBron did not get duped or "pimped" into signing with Nike. neither did any NBA player who spent 5 minutes getting a legit lawyer. the only people who get "pimped" are those who try to go it alone.

i think people are conflating nba endorsements with college basketball. in college it is more like "pimping" because you aren't really given a choice and the college or others can profit off you. you aren't left much negotiating room other than leaving.

Judging by your comments that means you believe all entreprenuers are getting "pimped."

Am I understanding you correctly?

I'm oversimplifying a bit for brevity.

what i was referring to specifically was trying to negotiate your own contract (either your salary or for an endorsement). entrepreneurs will often hire someone to assist in that aspect of their business (or at least consult with someone).

 

[whywesteppin]

one more thing to add: if the top players started their own independent league so that they could collect 100% of profits, it is doubtful it would equal the revenue of the NBA, or even come close. in many ways this is an inflated product, and it depends largely on the decades of advertising campaigns and other efforts to make the NBA a global product, along with the merchandise and shoes that go with it.

I'm not saying lebron deserves more or less than what he gets but that it's tricky to try to assign dollar amounts on what people deserve.

to put it another way: the reason Nike can sell lebrons for $180 is not just because of LeBron but because of the brand name of Nike that has been built up over our lifetimes, mostly with Jordan shoes but also in many other things Nike has done to establish brand recognition.

 

[handullz]

Well then if you want that analysis then let's analyze how much % of that 8 billion in last quarter of revenue was Lebron actually responsible for? Like people make so many hyperboles as if basketball is their only sport. Nike is involved in every sport practically so break that down because people automatically think as if that is their main revenue stream. Their golf clothing probably has higher margins for example. People are taking too much of a simple minded approach to all of this.

What you said reiterates my point: there are tons of costs cooked into the price of the LBJ gear that has absolutely nothing to do with LBJ.

LBJ could be 1 basis point of it; still doesn't negate the fact there is a tipping point where it makes more financial sense (albeit riskier) to venture on your own as opposed to being under the umbrella.

Not trying to be a jerk, so don't take it that way. Healthy dialogue: do you know what I mean when i say "in terms of unit economics analysis?"

 

[handullz]

one more thing to add: if the top players started their own independent league so that they could collect 100% of profits, it is doubtful it would equal the revenue of the NBA, or even come close. in many ways this is an inflated product, and it depends largely on the decades of advertising campaigns and other efforts to make the NBA a global product, along with the merchandise and shoes that go with it.

I'm not saying lebron deserves more or less than what he gets but that it's tricky to try to assign dollar amounts on what people deserve.

to put it another way: the reason Nike can sell lebrons for $180 is not just because of LeBron but because of the brand name of Nike that has been built up over our lifetimes, mostly with Jordan shoes but also in many other things Nike has done to establish brand recognition.

Agreed.

But this is the internet where we speculate.

 

[Brownstone]

What you said reiterates my point: there are tons of costs cooked into the price of the LBJ gear that has absolutely nothing to do with LBJ.

LBJ could be 1 basis point of it; still doesn't negate the fact there is a tipping point where it makes more financial sense (albeit riskier) to venture on your own as opposed to being under the umbrella.

Not trying to be a jerk, so don't take it that way. Healthy dialogue: do you know what I mean when i say "in terms of unit economics analysis?"

Financial sense, maybe. LeBron def could, but then why hasn't he done it?

 

[kingfoamnyc]

Because he's under contract.

 

[bigj505]

Nike is having a hard time selling lebrons for $175

 

[bigj505]

Because he's under contract.

He's had multiple contracts with Nike. He could have chosen to go so instead of signing a new one.

 

[handullz]

Financial sense, maybe. LeBron def could, but then why hasn't he done it?

Because he's under contract.

Dat.

Plus, he prolly doesn't want the headache of dealing with that.

There are plenty of things that make more financial sense. We just don't do it b/c we don't want to hold the risk, deal with the work intensity, etc.

A job offers you 10k more, but you have to move. Financially, it makes sense. But there are other factors that could prevent you from taking the gig.

It's a crude way of looking at it, but I'm not talking about all the ancillary factors. I'm speaking to where Lavar Ball and them are trying to go from a financial and brand perspective.

It's not better or worse than the way other athletes do it.

it's just different.

 

[biggie62]

Well then if you want that analysis then let's analyze how much % of that 8 billion in last quarter of revenue was Lebron actually responsible for? Like people make so many hyperboles as if basketball is their only sport. Nike is involved in every sport practically so break that down because people automatically think as if that is their main revenue stream. Their golf clothing probably has higher margins for example. People are taking too much of a simple minded approach to all of this.

What you said reiterates my point: there are tons of costs cooked into the price of the LBJ gear that has absolutely nothing to do with LBJ.

LBJ could be 1 basis point of it; still doesn't negate the fact there is a tipping point where it makes more financial sense (albeit riskier) to venture on your own as opposed to being under the umbrella.

Not trying to be a jerk, so don't take it that way. Healthy dialogue: do you know what I mean when i say "in terms of unit economics analysis?"

Yea cost accounting/management accounting. And this is tricky because the way one does it varies from company to company and on the approach it chooses to take. Simplest way is to take it proportionally to sales to make it easy. Which is what many firms will do to make lines that sell less seem as if they are doing well to justify them being there. And sometimes you need to do that as a firm to develop a presence in a new market or line of business.

 

[kingfoamnyc]

Can't wait to see the next LeBron esque prospect come out of college with his own brand. Like I said before shorts, tees, sweatsuits with a logo that's fire the taste makers will eat it up. Let Kanye or any of these other dweebs rock that **** and has some limited aura around it = profit.

 

[whywesteppin]

which athletes have successfully launched their own brand, in any sport?

this isn't exactly the same but the failure that comes to mind is MVP: http://money.cnn.com/2001/02/07/sunsetting/biz_mvp/

 

[wavycrocket]

Can't wait to see the next LeBron esque prospect come out of college with his own brand. Like I said before shorts, tees, sweatsuits with a logo that's fire the taste makers will eat it up. Let Kanye or any of these other dweebs rock that **** and has some limited aura around it = profit.

Me and my bro were JUST talking about this

Hell, it could be LeBron James Jr.

Nike execs are afraid of what could be a trailblazing elite athlete....that starts his own brand. Shaq had huge success in the 90s.....but he was a big man, and before his time.

Bronny Jr with his own line in 6 years

 

[shogun]

They should probably try clothes first. If neek can make the most basic stuff a hit then someone who already has millions could do ok.

 

[bigj505]

which athletes have successfully launched their own brand, in any sport?

this isn't exactly the same but the failure that comes to mind is MVP: http://money.cnn.com/2001/02/07/sunsetting/biz_mvp/

Greg Norman - golf
Shaq
Maybe Ewing but it depends on what we define success as

It's not often but it happens

 

[bigj505]

They should probably try clothes first. If neek can make the most basic stuff a hit then someone who already has millions could do ok.

Agreed. Clothing seems like it's a lot less effort to create vs stuff like shoes.

I mean, didn't Kanye sell out of $1000 white tees?