By Rhonda
We all know that athletes are some of the highest-paid people in the world, making millions of dollars in salaries and endorsement deals throughout their careers. Becoming a millionaire is a piece of cake for elite athletes, but becoming a billionaire takes serious effort, a good eye for the right deals and talent in the sport you play. There are a few retired athletes who have already crossed over into the billionaire club, while some millionaire athletes are right on the doorstep. Then there’s Lebron James, the first active NBA player to become a billionaire, according to Forbes.
James manifested this status many years ago. He told GQ in 2014, “Obviously I want to maximize my business. And if I happen to get it, if I happen to be a billion-dollar athlete, ho. Hip hip hooray! Oh, my God, I’m gonna be excited.” Well, he made it, and he did it while still playing the game he rules. Something even the GOAT, Michael Jordan didn’t do. Jordan became a billionaire ten years after he retired.
LeBron becomes the first active NBA player to make the billionaires list 💰
(via @Forbes) pic.twitter.com/AYJ9x6QqjC
— ESPN (@espn) June 2, 2022
How did James do it? He built a diverse empire with solid business investments. He made about $383 million in all of his NBA contracts over the 19 years he has been in the league. Up next, the Springhill Company, an entertainment development and production company founded in 2020 by James and Maverick Carter. Springhill produced Space Jam. He sold a significant minority stake in the company for $300 million. James is estimated to own about 1% of the Fenway Sports Group, which equals about $90 million. Moreover, there are his real estate holdings valued at about $80 million. Lastly, cash and other investments, which are worth about $500 million according to Forbes. Not only is he the first active NBA billionaire, he joins a very select list of Black billionaires, becoming the 16th Black billionaire in the world joining the likes of Oprah, Jay Z and Robert F. Smith.
Is there another active athlete in the world who could cross that billionaire club velvet rope? I think there is a big chance a few could do it. The world is different. Today, athletes have a crossover appeal and many avenues to extend their influence and relevance from the field of play into pop culture and entertainment. These athletes have other passions and endless opportunities available to them. Athletes have long relied on others to tell their stories, but that is changing in recent years as players began to recognize how they could control the narrative. Athletes are using social media platforms to build audiences, podcasts, fashion brands and athlete-owned media networks. They are becoming content providers and using their names to make a fortune as well as tell their stories.
Still, entering into billionaires’ row takes a lot of hard work. However, there are a few sports stars who have expanded their wealth by turning those paychecks into veritable empires and could follow in James’ footsteps. Here are a few.
Canelo Alvarez is a Mexico boxer who signed a massive, 11-fight, five-year, $365 million contract with the streaming service DAZN. Further, Canelo has founded his own brand of caps, clothing and gas stations, the latter called ‘Canelo Energy‘. Another of his ventures is his clothing outlet, Canelo Store. Canelo Store‘ recently set up shop in New York and sells all the clothes and accessories the champion uses inside and outside of the ring, which he promotes through his social networks.
Canelo Alvarez will make…
$365,000,000 in 5 years
$6,083,333 in a month
$197,297 in a day
$7,556 in an hour
$138 in a minute💸😳 (via @Sporf) https://t.co/hAd6O0bW2D
— Complex (@Complex) October 18, 2018
The face of Formula One, Lewis Hamilton, is reportedly worth nearly $500 million and has become the highest-paid driver in the history of the sport. He has his own clothing line and has invested in the rapid grocery delivery start-up, Zapp. But to become a billionaire, he may need to stop spending his money foolishly on crazy things like he has been doing throughout his career.
Tennis great Serena Williams founded the investment firm Serena Ventures in 2014 to give opportunities to diverse founders. It now has a $12 billion market cap, according to the company’s website. Williams also has a line of clothing and accessories, S by Serena Williams, and a namesake line of fine jewelry.
Two-time NBA MVP Stephen Curry formed SC30 in 2017 to manage his investments, brand partnerships and philanthropic ventures. He also has a production company, Unanimous Media, which has a development deal with Sony Pictures. More recently, Curry cut a deal to receive an equity stake in Oxigen – a water-based beverage that purportedly aids in muscle recovery. Curry intends to help market the beverage, and his equity stake means he’ll share in the profits if the company takes off.
Ten-time NBA All-Star Kevin Durant is the co-founder and president of Thirty Five Ventures. The umbrella company incorporates a number of business entities, including Durant’s personal brand and marketing portfolio, an investment portfolio, the Kevin Durant Charity Foundation and a multichannel sports business network, The Boardroom, distributed in partnership with ESPN.
Lionel Messi is perhaps tied with Cristiano Ronaldo for the best soccer player in the world, but when it comes to money, Messi is a bit behind. He is still worth $400 million, making him one of the richest players in the world, but his counterpart, Ronaldo, is already a billionaire. But, with his many business deals such as the Lionel Messi Theme Park, his own clothing line and other vast sponsorship deals, he should be in the Billionaire’s Club one day.
In the 1960s, many players in the NBA, MLB and NFL had to have full-time jobs in the offseason to make ends meet, and some of those athletes were among the first group of sports stars to turn athletic fame into riches once their career was over, through shrewd business investments and investing in themselves. Today, we’re witnessing a huge shift – athletes are no longer one-dimensional during their active careers. Athletes are building business empires during their playing days, and why shouldn’t they? I would be doing the same if I was in their shoes.
Photo Credit: albertoadan
