NBA, LeBron James and global branding of basketball

The presence of super star players reflects a profitable narrative in the sports-entertainment-nexus of the American sports economy and the NBA. In historic light, the NBA is a sports product, which was boosted by the successful co-branding associated with players like Michael Jordan, Larry Bird, Earvin ’Magic’ Johnson and later Shaquille O’Neal, Kevin Garnett, Allen Iverson, Tim Duncan and Kobe Bryant. This development has been assisted by a wave of massive mediated content and commercialization influencing the market of basketball and thus the NBA. Consequently, the star players have played a vital role in order to create an exciting identity expression of the league.

Super stars, fan identification and economics

The qualitative and commercialized product delivery on the finest stage of basketball (the NBA) is reliant on the league’s celebrated super stars and the derived fan identification. LeBron James has played a central role in that process since he entered the NBA as a first pick draft choice by the Cleveland Cavaliers in the 2003 NBA Draft. Championships, personal records, MVP awards and other personal recognitions have been added to LeBron’s list of honors since his entrance to the NBA. The positive brand interactions between the NBA, the league’s super stars and other commercial stakeholders in the league’s business model give rise to substantial articulation and commercial initiatives founded on the premise that sponsors (e.g. Nike) attach greater priority to sports marketing via new and fragmented platforms. This process reinforces strong narratives that can help to build or sustain fan identification while improving the league’s ability to capitalize on its brand.

Photo: LeBron James affects ticket prices of the NBA product (StubHub, 2017).

From an economic viewpoint, the business model of the NBA and the attached capitalization power has grown considerably over the years. Economic analyses show that the NBA has experienced solid growth in all areas of its business model since the 1980s. In that regard, the league has especially profited from the broadcasting companies’ efforts to benefit from the role of basketball in popular culture and hence the ability to move eyeballs and hence customers and market shares. Exploding prices on broadcasting rights followed by exposure on more international markets (strengthened due to the influx of more foreign players like Dirk Nowitzki, Peja Stojakovic, Pau Gasol and Tony Parker), large increases in merchandise sales, a value-added capitalization on fans, the league’s positioning in the retail market and the expansion of the number of NBA teams comprise factors that illustrate an economic reality of a sport with a successful commercialization and globalization effect. Strategic focus on becoming a decisive global player in the sports landscape and an entertainment product in high demand on ‘live venue’ and media platforms seems to have come to fruition. This is symbolized by the fact that the valuation of the different NBA teams, the price to gain access to the league (new expansion teams due to the expansion of the league over time) and the player salaries have grown exponentially.

At the highest level, the player becomes a face of the league. The appeal of the Cleveland Cavaliers is synonymous with LeBron and to many people LeBron represents the NBA. (Professor Stephen Greyser, Harvard Business School

As an answer to the question ‘why is LeBron James important for the global brand of the NBA and for the branding of basketball?’, Professor Stephen Greyser from Harvard Business School mentions that “A star of the caliber of LeBron James can have a positive impact on at least four areas and a possible fifth. First, is the impact for themselves and their own brand. That results in fan followership and endorsements.............

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