LeBron James benefits financially from Liverpool's run to Champions League Final
What's the story?
LeBron James' yet another investment turns into gold as Liverpool advances into the UEFA Champions League Finals.
In case you didn't know...
This isn’t the first investment made by the 'King' that has turned out to be fruitful. In 2014, he made more than $30 million when Beats by Dre sold to Apple. A $1 million investment James and his team put into fast-casual pizza chain Blaze Pizza has turned into at least $25 million on paper and more likely closer to $45 million, according to sources.
The heart of the matter...
Liverpool beat AS Roma by an aggregate score of 7-6 on Wednesday to advance to the Finals of the UEFA Champions League for the first time in 11 years. The 3-time NBA Champion holds a 2 percent stake in Liverpool since April 2011 when his marketing firm, LRMR, agreed to a joint venture with Fenway Sports Partners, according to sources.
Liverpool was the 8th most valuable scoring team in the world at a value of $1.49 billion, per Forbes last June. A trip now to the UEFA Champions League will guarantee an award of more than $100 million to Liverpool. A sports investment banker told ESPN, given the team's rise to prominence combined with its history, the team could be sold today conservatively for $1.6 billion. That means James' investment has grown nearly five times ($6.5 million to $32 million) in seven years.
"It has been an honor for us to be in on this deal with Fenway Sports Partners, John Henry, and Tom Werner," James’ business partner Michael Carter said. "It has been a thrill to watch such a storied club make their way back to the top again and to be a part of it all. LeBron likes the fact that he's diversified in another global sport."
What's next?
Liverpool last won the UEFA Champions League in 2005 and therefore are yet to win a modern Premier League title. The team takes on Cristiano Ronaldo and two-time defending champions Real Madrid on May 26 in Kiev, Ukraine.
Author's take
LeBron James once again shows that he is not only smart on the court but off the court as well. His business acumen pays off this time in the world of football.