'When LeBron James returned to Cleveland, I made no money': Rich Paul weighs in on player power in JJ Redick interview
LeBron James' return to Cleveland was one of the most eventful moments of the 2010s, but for agent Rich Paul it was a test. Paul's Klutch Sports is one of the most influential agencies in the NBA and LeBron James is without question their prize asset. However, James' iconic move was not as lucrative for Paul and Co., in comparison to what they may have made if the star wing signed elsewhere.
Integrity was the name of the game for Rich Paul during the move that saw LeBron James sacrifice South Beach for his hometown. Paul had made himself an empire in player management and he did so putting the best interests of his clients over his own personal interests. The deal that took LeBron to Cleveland is probably the prime example of him living up to his word.
In 2014, LeBron James was arguably the world's best player and was probably the most coveted player in the league. Rich Paul and Klutch had discussions with six NBA teams - the Cleveland Cavaliers, the Houston Rockets, the Los Angeles Lakers, the Dallas Mavericks, the Phoenix Suns, and the Miami Heat.
But eventually, LeBron joined Cleveland and Paul explained how money wasn't a concern while negotiating the deal. Paul's statements came on JJ Redick's Old Man and the Three, where they discussed the business of basketball agency.
"My life isn't totally dependent on a commission. So, I have the ability. When I started the company, my focus was always to do what's best for the client. That's actually one of our things internally that we built the business on. Always do what's best for the client. Even if I didn't make any money or we didn't make any money as a company" said Paul about his business ethics.
James had the opportunity to go back to Cleveland and settle a score. But, staying in Cleveland for a long term especially when at that stage they weren't quite laden with talent, was also risky. A deal was finally brokered for a two-year deal valued at around $42 million.
"When LJ [LeBron James] came back to Cleveland, I was making no money. All my existing contracts were somewhere else - Bled [Eric Bledsoe], Tristan [Thompson], Cory [Joseph] - and when LeBron came to Cleveland, I had three people working, maybe two? And I got the ability to sign a max contract, four-years committed, at 4% coming to me" explained Paul about how he sacrifices personal gains for client satisfaction.
The Miami Heat were the other serious contender for the signature of LeBron James in 2014
Heat, as the incumbent team, could make the best offer - a five-year, $118.7 million deal. Everyone else, including the Cleveland Cavaliers, could offer only up to $88.2 million over four years. With the league capping agent fees at four per cent, a deal with Miami would have landed Paul and Klutch Sports $4.75 million. Instead, the eventual deal was worth only a third of that figure to the agency.
So, Paul proved his integrity, and the same has since been well rewarded too, with James signing for multi-hundred millions since, in deals with the Cavs and the Lakers combined. Loyalty is clearly rewarded even in the corporate circle of sport.