NBA salaries have skyrocketed in recent years, but the biggest stars have earned more off the court than on it to this point in their careers. LeBron James, who tops the ranking for the 2019-2020 season, has made more than twice as much from endorsements than his $270 million in playing salary over his first 16 years. Kevin Durant’s on-court earnings of $187 million in 12 seasons is dwarfed by his current ten-year, $275 million Nike deal.
At $92 million, including salary and endorsements, James is the NBA’s highest-paid player for the sixth straight year. It is a record haul for an active basketball player. Nike is his biggest backer, and the company is naming a new research lab at its Beaverton, Oregon, corporate campus after James. Last month, the 17th iteration of his Nike signature shoe, the LeBron XVII, hit stores.
The four-time NBA MVP added a pair of endorsement deals in 2019 with Rimowa luggage and Walmart, which joined Coca-Cola, Beats By Dre, Blaze Pizza and NBA 2K in his sponsorship stable.
He also has a budding digital media company, Uninterrupted, and a production firm, SpringHill Entertainment, which will release a sequel to the 1996 Michael Jordan vehicle Space Jam in conjunction with Warner Bros. in 2021. All of the off-court work is worth an estimated $55 million for James this season.
The Los Angeles Lakers star’s comments about the NBA’s geopolitical mess in China also reveal the precarious position everyone in the league is in as political unrest in Hong Kong shows no signs of abating.
As the league’s 74th regular season tipped off Tuesday night, the NBA was still reeling from the crisis set off by a tweet from Houston Rockets GM Daryl Morey in support of Hong Kong’s pro-democracy protesters.
Commissioner Adam Silver backed Morey’s right to free speech, but some players didn’t, including James, who called Morey “misinformed or not really educated” on the situation. “We love China,” said Rockets point guard James Harden.
It was a rare misstep for two of the league’s more media-savvy stars, both of whom have close ties to China. Adidas, which has Harden as the face of its basketball business, generated more revenue in China last year than in North America, and the Rockets are China’s most popular team after drafting native son Yao Ming in 2002.
Nike’s China revenue topped $6 billion during the last fiscal year, and the country is a growth leader for the brand. James has represented Nike on 15 off-season trips to China. The sports giant pays James more than $30 million annually to pitch its products around the globe.
And the threat of losing its growth trajectory in China could have far-reaching consequences for team valuations.
But back at home, the financials of NBA franchises remain solid, which is good for player salaries. The league’s salary cap is soaring, fueled largely by the nine-year, $24 billion TV deal with ESPN and TNT signed in 2014.
NBA players are entitled to 51% of the league’s “basketball-related income” as laid out in the collective bargaining agreement. The rich TV deal and budding international business means 46 players will earn a playing salary of at least $25 million this season, according to Spotrac. The $25 million club had zero members five years ago. And unlike in the NFL, every dollar is guaranteed upon signing.
On-court salaries in the NBA are capped based on a player’s number of years in the league and accolades earned in cases in which an award like MVP entitles them to a bigger percentage of a team’s salary cap.
So the pecking order for the elite stars is ultimately determined by their off-court income, with the shoe deal the biggest component of those earnings. There are ten active NBA players who will make at least $10 million from their shoe contracts this year, by Forbes’ count.
Stephen Curry comes in at No. 2 on the earnings list this year and is expected to generate $85 million this season, including $45 million off the court. Under Armour represents nearly half of his off-court income.
Curry’s $40.2 million salary from the Golden State Warriors is the highest in the history of the NBA; he’s in the third season of the five-year, $201 million contract he signed in 2017. Curry’s production company, Unanimous Media, has a development deal with Sony Pictures.
Unanimous’ first movie, Breakthrough, was released in April, with Curry playing a role in marketing the Christian-oriented film, which grossed $50 million on a $14 million budget.
Durant has the NBA’s second-biggest annual shoe contract after James’ at an estimated $26 million this season. His total earnings from his playing salary and endorsements is $73 million. Nike sells more KD shoes in China than in North America, according to Durant’s business partner Rich Kleiman.
Like James and Curry, Durant has his own production company, which is co-producing a new basketball-themed drama, Swagger, that is inspired by Durant’s youth basketball experience and will air on the Apple TV+ streaming service.
The NBA’s ten highest-paid players are expected to earn a cumulative $600 million this year, including $250 million from endorsements, appearances, merchandise and media.
Lillard signed a four-year, $196 million supermax extension in July with the Portland Trail Blazers that kicks in for the 2021-2022 season. The final year is worth $54.25 million for the 2013 NBA Rookie of the Year and four-time All-Star. Lillard’s Adidas shoe deal is worth roughly $10 million annually.
The “Greek Freak” is eligible for a five-year, $248 million contract extension next summer with the Milwaukee Bucks. It would be the richest deal in the history of the sport. In June, Nike unveiled the first signature shoe, Zoom Freak 1, for the 2019 NBA MVP.
Only Curry will earn more on the court this season than Paul, who was traded to the Oklahoma City Thunder in July. Paul was an early investor and ambassador for Beyond Meat, whose stock price has quadrupled since its initial public offering in May.
Thompson’s coach, Steve Kerr, says the sharpshooter is likely to miss the entire season after tearing his ACL during the NBA Finals in June. But he’ll still collect his full $32.7 million salary—almost double last year’s—under the first season of the five-year, $190 million pact he signed in July. Thompson is the basketball face of Chinese shoe brand Anta.
Irving joins his third team in four years this season. His four-year deal with the Brooklyn Nets is worth $136 million and includes an additional $4.3 million in potential incentives. A viral Pepsi ad campaign featuring Irving as the elderly Uncle Drew eventually led to a 2018 feature film; Irving has partial ownership of the character. Irving is another Beyond Meat investor.
The 2018 NBA MVP purchased a minority stake in the Houston Dynamo of MLS this summer for $15 million. Harden also holds equity stakes in BodyArmor, Stance socks and Art of Sport. His salary with the Rockets jumps $8 million this season with the start of a contract extension he signed in 2017.
Westbrook’s five-year, $207 million contract is the largest deal in the NBA right now. The eight-time All Star extended his deal with Nike’s Jordan brand in 2017 for another ten years and in 2018 received his first signature shoe, the Why Not Zer0. Westbrook has averaged a triple-double for three straight seasons.
Durant is likely to miss the entire season recovering from a torn Achilles tendon suffered in June during the NBA Finals. He’ll still pocket his full first-year salary from the Brooklyn Nets under the four-year, $164 million deal he signed in July. He’s invested in more than 30 startups, including Postmates and investing app Acorns.
The two-time MVP used some of his hoops money in June to buy a $31 million home in Atherton, California, with his wife, Ayesha. He also made a seven-figure donation this summer to Howard University to help launch a golf program at the school and recently signed an endorsement partnership with Callaway Golf. Curry became the only player to win the NBA MVP unanimously when he won his second of back-to-back awards in 2016.
James signed an endorsement in 2019 with Walmart that is rooted in community work. He worked with the retail giant on its Fight Hunger. Spark Change. initiative, as well as the company’s back-to-school campaign. James is part of an investment group that owns 19 Blaze Pizza franchises across Illinois and Florida.
-Forbes; Kurt Badenhausen
5 Ways To Cope With The Self During Isolation
As Covid-19 continues to spread ruthlessly across the globe, governments have enforced lockdowns in countries to slow the infection rate. And this has meant restricted movements of people and work from home. As the globe’s population practises self-isolation and social-distancing, the lack of the familiar can lead to further stress and mental health issues. Establishing coping mechanisms to deal with anxiety and depression during these times is crucial. Healthcare practitioner and counselling psychologist, Nkateko Ndala-Magoro, through the South African Depression and Anxiety Group’s Facebook platform, lets us in on five self-help strategies to deal with depression.
Get active: “It is hard I know to stay active while you are confined. The benefits of staying active is the release of feel good hormones that are in contrast with the hormones that exacerbate depression. Being active also helps regulate your heart beat; for people suffering from anxiety, the regulation of breathing might help with the severity of the anxiety/panic attack.”
Take time to sleep: “I know people are already feeling like they do not have any more positions of sleep because of sleeping too much during lockdown. I encourage that people get as much quality sleep as possible in this time. Sleeping has benefits on our health and wellbeing in general, let alone on our mental health on many levels.”
Read: “Keep yourself busy by reading. There is a wealth of information in books. There are many online platforms including Amazon, which have made available e-books for free. Read self-help books and fiction to escape the reality; and any other books that interest you.”
Learn a new skill: “This will also keep you interested as mastering something new takes a lot in terms of focus and energy.”
Connect with loved ones: “Connect with your loved ones via video chats. Journal and work on things you have been meaning to work on to give you a sense of accomplishment.”
The Five Trends To Future-Proof Your Business
Some of these fads were slowly building in the previous decade, others are still nascent, but need your full attention to prepare your business for the times ahead.
1. AI and machine learning
Key takeaway: Automate repetitive tasks, but be wary of automating inefficiencies and biases.
You’re surrounded by artificial intelligence (AI) and machine learning: from the recommendations Netflix makes based on your viewing history to those pesky adverts that track you around the internet. As Bronwyn Williams, a trend analyst at Flux Trends in South Africa, explains, “Most of what you think is AI is actually machine learning.” Williams emphasizes that fears about AI “stealing jobs” are overrated, and most businesses will see the arduous, repetitive tasks given to machines, freeing up humans for analysis and critical thinking. She warns businesses to remember it’s the human interaction that differentiates one offering from another. “Don’t automate away your value. Look under the hood and make sure you understand why you are automating something – and be careful not to automate inefficiencies.” Looking at automated HR processes, companies have discovered that even unconscious human biases are learned by machines (for example, CVs belonging to certain genders and races are discredited. Machines are not born neutral – especially if they’re learning from humans.) Embrace machine learning, but do so with a pinch of salt.
2. Driverless cars and the supply chain
Key takeaway: Autonomous cars are still about 15 years away, but it’s best to prepare your fleet and supply chain choice now.
The automotive industry is going through some major changes: electric cars, the growth of services like Uber and Lift, and lastly, the development of autonomous vehicles. Though the first two will impact everyday consumer experiences, it’s self-driving cars that will massively alter businesses and their supply chains across Africa in the next decade. “As convenience and efficiency are the cornerstones of the fleet industry, there is no doubt self-driving vehicles will start making a play for their share of the fleet industry sooner rather than later,” explains Sudesh Pillay on fleet management company EQSTRA’s online platform. The supply chain will no longer be affected by driver fatigue and human error. Driverless cars will also dramatically impact accident rates (lowering them by 90%, according to some estimates) and supply chain efficiency. As Innovation Group’s Future Now report indicates, autonomous cars face some serious challenges across Africa before they can become a practical alternative to human drivers. “There is a vision, in the not-too-distant future, in which self-driving cars hold a lot of promise…. Others are more skeptical about the practical feasibility, especially in Africa where the infrastructural limitations (roads, electricity etc.) hold back the vision, at least in the foreseeable future. Our research indicates that self-driving cars may only become a reality in South Africa in  or more years and that this may spur innovative advances in infrastructure, energy services and ultimately the look and feel of roads and cities.”
3. Climate crises and
Key takeaway: Hire a Chief Sustainability Officer to
start building climate resilience into your business.
“Now is the time to start thinking seriously about resilience,” says Hugh Tyrrell, Director at Green Edge, a corporate mentoring initiative in Cape Town that helps businesses develop sustainably. “The big brands have Chief Sustainability Officers (CSO). This role is in the C-suite and is forward-thinking,” Tyrell explains. CSOs look at how businesses can start developing their own power, lower their eco-footprint and manage their resources better. Looking to the big corporate trendsetters, there are some major shifts in corporate strategy focusing on a sustainable business model instead of growth at all costs. Unilever, for example, is holding their suppliers to the same eco-friendly standards that they themselves are working at, says Tyrrell. Natural disasters associated with the climate crisis are already affecting African businesses too. Explains Tyrrell, “In agriculture, which is a big sector in Africa, we are seeing the effect of droughts or floods. Others have to work more closely with their suppliers to ensure supplies come in good condition and on time.” Mining is another industry heavily impacted by the climate crisis – and the push by consumers for more environmental-friendly solutions.
4. The age of cyberattacks and data breaches
Key takeaway: Make sure your IT department includes
skilled data protection specialists.
As businesses innovate and rely less on physical hardware like servers, and start instead relying on the cloud, they can expect to see a massive uptick in cyberattacks and subsequent data breaches. This trend increased exponentially in 2019 (even the City of Johannesburg in South Africa was held by ransomware) and is set to explode in the coming decade. Added to this, businesses are collecting more data than ever before, particularly for marketing purposes and to tailor their product offerings. Because of this, businesses should prepare themselves for the onslaught by firstly, taking their online security very seriously, secondly, training their staff (employees are the weakest link in any security chain) and thirdly, putting more budget behind appropriate security measures. “The demand for narrow cybersecurity expertise is driven by a constantly changing threat landscape, as well as evolving technologies, such as cloud or IoT. As a result, we see the bigger demand in, for example, threat intelligence analysts and dedicated threat intelligence services, and experts for cloud platform protection. The call for data protection specialists is seen in both technical and regulatory and compliance aspects,” says Alexander Moiseev, Chief Business Officer at online security software Kaspersky.
5. The remote workforce
Key takeaway: Flexi-hours and working remotely are practical ways to combat challenges like loadshedding and traffic.
With intermittent power supply (particularly in South Africa), increasing traffic and less reliance on physical IT infrastructure like servers, the remote and flexible workforce is becoming a norm. Says Moiseev, “The working model is already being changed, with 40% of small and medium companies regularly allowing their employees to work at locations outside the office — from home or while traveling.” In addition, health scares like the coronavirus are amplifying these trends. “Apps that enable remote working are having a moment,” explains Williams. “You now get filters to add makeup to video conferences so you don’t have to dress up when you’re working from home.” Many employees expect the flexibility of remote working when job hunting, and businesses reap the benefits of agility.
The Top 5 Emerging Crazy Tech
A pick of some of the weirdest, coolest tech that could come hurtling our way this year.
- A bot that delivers toilet paper
Forgot to instal toilet paper in the loo? The Charmin RollBot is designed to carry a roll of toilet paper on two wheels. With the press of a button on your phone, the RollBot will help with your sanitary requirement.
Using Bluetooth, the bot will commence its mission; an infra-red sensor able to navigate its way to you. According to Business Insider, there’s no price or release date for RollBot, nor is it clear if it will ever be released as a consumer product. Charmin calls RollBot a “conceptual prototype”. The brand unveiled the bot last month at the CES 2020 expo in Las Vegas.
2. The Cyrcle phone
If for any reason you got bored of your rectangular handset, the circular phone is always an alternative offering a different view and take. According to the makers, the phone was designed with the Generation Z, female audience in mind. It’s round and features two headphone jacks. The device was designed by a US-based startup delivering a shape that it says is more “sensual”. The company reckons it will be ready to launch in a year’s time.
3. A smart bed
There’s nothing like a good night’s sleep. But it’s not always possible to have the best sleep every day. Or is it? There is a bed that’s guaranteed to give you your beauty sleep the way you want it.
Sleep Number Climate 360 has a mattress with features that warm your feet to help you sleep faster. It will also help you stay asleep by cooling your body, and balance your temperature with your natural wake and sleep cycles.
But what’s most intriguing is the fact that the bed also gives you a Sleep IQ score for personalized sleep insights. It measures your heart rate, breathing and movement, tracks your circadian rhythms and can show how your heart rate varies. The smart bed received the CES 2020 Best of Innovation award and is only expected to be available in 2021.
4. Self-changing trash can
For those who dread taking out the trash, this device is possible a no-brainer. Apart from its motion sensors to detect when you need to throw trash, when it’s full, it will automatically seal the trash bag and line the bin with a new one, all with a press of a button.
Even if the bin is overflowing, the top compartment will lift up so it can still seal the bag shut without any mess. The bin, called the Townew bin, was designed by a Canadian company, Knectek Labs.
5. Vertical TV
Just when we were getting used to wider TVs, it seems taller screens may soon be coming to your living room. Samsung’s Sero TV vertical-oriented will soon be hitting markets.
The TV can not only work in the traditional horizontal format, but is also able to turn on its side for playing vertical videos in portrait style.This might come in handy when watching videos from social media platforms such as TikTok or Instagram that deal primarily with vertical videos.
It sits on a stand that prevents it hitting the floor when turning, and can be paired with a phone so that it automatically orientates it correctly based on what’s beamed from the handset. According to TechRadar.com the pricing and availability are yet to be revealed, but the Sero will be leaving Korea and is headed to the US and “several global markets” later this year.
Download issues of Forbes Africa
- Single Digital Issue: Forbes Africa June/July 2020 R50.00
- Single Digital Issue: Forbes Africa April 2020 - 30 Under 30 R50.00
- Single Digital Issue: Forbes Africa March 2020 R50.00
- Single Digital Issue: Forbes Africa February 2020 R50.00
- Single Digital Issue: Forbes Africa December 2019/ January 2020 R50.00
Subscribe to Forbes Africa
‘WFH’ here to stay?
[IN NUMBERS] Coronavirus Update: COVID-19 In Africa
Elon Musk, Kim Kardashian Endorse Kanye West Running For President
Immigration Attorney Lauren Blodgett’s Advice For The Younger Generation | Unfiltered | Forbes
How To Live Up To The Declaration of Independence – Steve Forbes | What’s Ahead | Forbes
- Health8 hours ago
[IN NUMBERS] Coronavirus Update: COVID-19 In Africa
- Entrepreneurs6 days ago
From The Arab World To Africa
- Entertainment6 days ago
Kim Kardashian West Is Worth $900 Million After Agreeing To Sell A Stake In Her Cosmetics Firm To Coty
- Health4 days ago
Empty Roads, Occupied Minds
- Brand Voice6 days ago
Maktech’s Godwin Makyao: Now Is A Time of Entrepreneurial Opportunity in East Africa
- Video6 days ago
The Most-Valuable Teams In Major League Baseball 2020 | The Countdown | Forbes
- Current Affairs4 days ago
Sustainable Development In Africa Can Be Amplified By The Media
- Video5 days ago
Instagram’s Kevin Systrom On Tracking Covid-19 And Advice For Entrepreneurs | Forbes