Liverpool chairman Tom Werner has explained the vital role LeBron James played in the Reds landing Nike as their kit supplier.
The Reds began their partnership with the US sporting giant at the beginning of the 2020/21 season, with Nike taking over from New Balance after Liverpool won a High Court ruling that rejected New Balance's attempts to invoke a clause in their contract.
That clause was related to New Balance being able to enter into a new deal if they matched the offer from another company, and while they were paying more than the £30m per year guaranteed that Nike offer, the other elements of what the brand with the 'swoosh' could bring to the table meant that the decision was ruled in Liverpool and Nike's favour.
The deal, according to some industry analysts, could be worth as much as £70m per season to Liverpool due to the 20 per cent royalties that the Reds will receive on the global sales of Nike/Liverpool branded merchandise. And with the biggest retail and direct to consumer network in sporting goods, it is a deal that is set to be hugely beneficial to Liverpool.
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And Tom Werner, chairman of both Liverpool and owners Fenway Sports Group, has revealed just how key the deal that was struck with basketball icon, entrepreneur and now FSG investor LeBron James was back in 2011.
James, one of the finest players to have ever played the game of basketball, is an iconic figure in American sport and his enduring appeal and marketability has seen him become one of the most recognisable athletes on the planet, a man who has a $1bn lifetime deal with Nike in place and someone who, through his off-court business savvy, looks set to become a billionaire away from what he has achieved in basketball.
And Werner, speaking to Forbes' Sports Money show, revealed it was James who wanted a slice of the action with Liverpool, and it is his presence that has aided their partnership with Nike.
"It started when LeBron and I share a brilliant asset manager in Paul Wachter (an FSG partner) and Paul introduced us to LeBron and his partner Maverick Carter," Werner said.
"We're partners with Maverick, we're investors in SpringHill which is Maverick and LeBron's entertainment company, and they are just crushing it when it comes to their growth in entertainment and brand partnerships and are working with some of the great companies in the United States such as Walmart and Chase.
"We had a conversation a number of years ago with LeBron to see if we could help him with his marketing. I'm probably going back a dozen years but LeBron said 'you know what, let's become partners'. He said 'what I'd really rather do than get paid and pay you a certain sum of money is I'd like to be an investor in Liverpool'.
"I'm always a little cautious about using the word synergy, but his partnership with Liverpool has resulted in our relationship with Nike, they now are our kit sponsor, and Nike is coming out with a number of branded products that connect LeBron James with Liverpool Football Club, and so these are opportunities to work with smart people."
The investment by James in Liverpool of around £4.7m in 2011 turned into one worth more than £40m by 2021.
And when RedBird Capital Partners came to the table in March of last year to clinch a deal for 11 per cent of the FSG business for $750m, James opted to convert his two per cent in Liverpool into one per cent of the $8bn valued FSG, which also includes the Boston Red Sox, Pittsburgh Penguins, RFK Racing, NESN TV and Fenway Sports Management.
In October, FSG, RedBird and Nike all invested into SpringHill, with James and Carter's firm valued at around $725m.
