Wednesday, November 28, 2007

LeBron Inc. - The building of a billion-dollar athlete

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Wouldn't it be interesting if LeBron used LRMR (see article) the way Mr. Buffett has used the insurance business to build a diversified holding company? For LeBron, the return on capital for that business is ridiculously high while he is in his prime and if he lets all that cash build up, gets someone with capital allocating expertise to partner with, and then either invests in and/or buys businesses when they are cheap, he could have pretty sizable conglomerate by the time he retires.
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And in full disclosure, I grew up in the Cleveland area and am a big Cavs fan. That fact also makes me hope that Mr. Buffett's decision to stay in his home town of Omaha also rubs off on LeBron and he spends his entire career in Cleveland!