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Free Agency Market for NBA Players in 2010

Free Agency Market for NBA Players in 2010. Introduction / Thesis. The sports industry is the 9 th biggest industry in the world. 2x the size of the car industry 7x the size of the “Hollywood” industry Thesis :

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Free Agency Market for NBA Players in 2010

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  1. Free Agency Market for NBA Players in 2010

  2. Introduction / Thesis • The sports industry is the 9th biggest industry in the world. • 2x the size of the car industry • 7x the size of the “Hollywood” industry Thesis: Other than salary, what are the variables or metrics that will allow NBA franchises to acquire “star” athletes?

  3. Hypothesis • Key factors the athlete will take into consideration are the following: • Salary • Arena • Location of team • Teammates • Draft pick of NBA team • NBA Championship • Individual lifestyle and ego

  4. Free Agents LeBron James Dwayne Wade AmareStoudemire Chris Bosh

  5. LeBron James • Cleveland Cavaliers, small-forward (SF) • 26 years old • Born and raised in Ohio • Rookie of the Year, 2003-2004 • All NBA Team and All Star, since 2005 • MVP, 2008-2009 • NBA contract: $15,779,912 year (6 years) • NIKE contract: $90million • “I want to become the first billionaire athlete in the world.” –LeBron James

  6. LeBron James • McDonald’s contract • State Farm Insurance contract • Royalty checks from NBAjerseys • Top 3 on list of most popular jerseys sold

  7. Variables / Metrics • “Stickiness” • Fan attachment and emotional involvement to a specific player • Media Market attachment factor (fan base) • Loyalty, bragging rights, population • “Glare of publicity” • Endorsements increase because of location • Top 3 Ad Agencies – 1)NY 2) LA 3)Chi. • Regional Endorsements • Commercials, fame, movies, et cetera, increase depending on location

  8. Los Angeles • Teams: Lakers and Clippers • No regional endorsement here because the Los Angeles Lakers Kobe Bryant is already in the limelight • Competing for publicity

  9. Chicago • Team: Bulls • Ad Agency market ranks 3rd • Franchise has a maximum-salary slot available • Supporting cast includes: • Derrick Rose • Luol Deng • Kirk Hinrich • Joakim Noah • “That’s the one team no one talks about him going.” –peer of LeBron

  10. New Jersey • Team: Nets • Minority owner is Jay-Z • “stickiness” factor • High draft pick • Nets CEO, recently stated that, “They see themselves overcoming economic concerns and legal opposition and will be moving into their planned $1 billion arena for the 2011-2012 season (Sixshot.com).”

  11. New York • Team: Knicks • NYC: • 5 boroughs • Upstate • Long Island • High “stickiness” factor • High media market attachment factor • Highest “glare of publicity” • Ad Market is number 1 • High draft pick • Have two maximum-salaryslots available • Q: What one member of theOlympic team would you want to play with in the future?A: Chris Bosh

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