UPDATED: I don’t follow the daily ins and outs of the sports agency biz — but I try my best to keep up with powerhouse CAA‘s when it makes headlines. So I’ve confirmed that basketball superstar LeBron James just made another “Decision”: he has left his veteran sports agent Leon Rose at CAA and followed his childhood friend, young CAA agent Rich Paul, out the tenpercentery’s door. LeBron is joining Paul’s new representation boutique Klutch
Sports Management based in Cleveland (where James played with the Cavs before infamously jumping to the Miami Heat in 2010). LeBron filed paperwork with the NBA Players’ Association on Wednesday to make it official. Meanwhile, Paul is getting officially certified to become LeBron’s third agent since the forward entered the league in 2003 and now ranks 4th on the latest Forbes’ list of richest athletes. “Paul is a good guy who’s starting a little 4-person business,” a CAA insider tells me. “We wish them well.”
The news about the three-time NBA MVP, and 2-time Olympic Gold Medallist was first tweeted by Sports Business Journal‘s Liz Mullen overnight and is causing ripples in the sports representation world. Especially because CAA was instrumental in bringing James to the Miami Heat (but did not package that TV primetime sports special The Decision about where LeBron was going to play). James’ playing contract still has $73.9 million over four years remaining. CAA will continue to reap LeBron’s rewards — until James’ player opt-outs in 2014 and 2015. This “could be the beginning of a shift of power in the NBA,” ESPN is reporting. “James was at the centerpiece of CAA’s rise to prominence in the NBA during the past five years … and made CAA a major power broker.”
ESPN is quoting sources that “Paul is expected to take some players with him to his new agency as is standard practice in the business.” At CAA, both Paul and Rose represented Charlotte Bobcats rookie Michael Kidd-Gilchrist. But Paul counts among his clients Cleveland Cavaliers forward Tristan Thompson, Los Angeles Clippers guard Eric Bledsoe, and San Antonio Spurs guard Cory Joseph among others at CAA. And 2013 free agent Chris Paul is said to be one of LeBron’s and Paul’s closest friends. (The two are not related.)
According to sports reports, Paul and James are childhoood pals and, together with Maverick Carter and Randy Mims, call themselves ’The Four Horsemen’. Later, after LeBron joined the NBA, they started a management group/marketing company called LRMR, which for the past 7 years runs James’ sports portfolio and is led by Carter. Paul was a business partner there until he joined CAA in 2008. He worked under veteran sports agent Rose, who has been LeBron’s rep ever since 2005 when the player left his first agent Aaron Goodwin. Two years later, CAA purchased Rose’s practice and the right to do business with James. Rose negotiated James’ last two contracts. But it was LeBron’s 6-year deal with the Heat in 2010 that created a media coverage blitz. That’s because CAA’s Rose and CAA agent Henry Thomas teamed up to put together LeBron, Dwyane Wade, and Chris Bosh together in Miami.
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Best news I’ve heard all week! WOW! Good for Rich Paul!
LeQuit is a major twit. Hope CAA goes bankrupt for putting that player-collusion mess together in Miami. See how agents are just ruining pro sports for everyone. This is the prime example, folks.
Yeah, CAA’s going to go bankrupt over putting together the most ground-breaking deal in NBA free agency history that led to the most watched NBA season in years. And I hope James Cameron goes bankrupt for putting together that dreck Avatar.
Way to go LeBron. Keep treating your life like an episode of Entourage.
A Mark Wahlberg production.
Who will play turtle?
PAT RILEY made the James to Miami deal happen, with help from Dwayne Wade. NBA contracts are governed by salary cap/team payroll rules. CAA had nothing to do with it, and are lucky to be able to commission him at all.
these things are simply typical. Athletes appear to be not only the biggest whiners – but the ones that move around the most. They change agents and reps like we change water bottles. That said, James is a drama queen. You never saw Jordan or Kobe or Duncan change agents every 3 years, like James has done. All it shows to the world is that James’ loyalty factor is indeed shaky – and unreliable. He’s got to live with that. Better him than me !!!
Don’t hate the player, hate the game. Sports is getting out of control; most athletes are innocent prey and agents are thieves huge headaches for team owners. It seems that James has more of a grip on his life and career than other athletes and seems to put in effort to control his business ventures. I’m glad he’s leaving the Death Star.
Loyalty factor shaky? He’s getting represented by a childhood friend. How is that not loyal?
Hi Paul,
I believe the article said that Rich Paul is already his agent? And that he’s simply leaving with him? It’s best not to get to hung up on things like hierarchy, and who is the most “veteran” agent, because you might not know who has the strongest relationship with and does the best work for a client. Just my thoughts.
Thanks,
Someone who has nothing to do with this story
Say what you will about James (and a lot of it is probably true), but this doesn’t seem like a bad move. In fact, it sounds as though he’s consolidating his representation and bringing everything together in a company where he also has a stake. On the surface it’s probably a good business decision.
And it sounds like Paul spent years learning under a veteran, is finally ready to work with major sports talent on his own and James is putting his trust back in a long time friend.
While it’s a big move in and of itself, I don’t really know why it has much impact outside of those directly involved.
Thing is that CAA reaped little commissions on most of LeBron’s marketing deals because his own firm(LRMR) negotiated most of the renewals of his intial marketing deals. Don’t forget that LBJ turned over his marketing to Fenway Sports Grp in exchange for ownership of a soccer team. Also, CAA didn’t even get the full 4% commissions on his NBA contract because that’s how the biz is, LBJ has pull and the NBA salaries are based on a scale. LBJ was a marketing/recruitng tool for CAA basketball. The real issue will be if Chris Paul leaves when he’s about to sign his $100M deal(in addition to some of the other up and coming stars)
“Paul is a good guy who’s starting a little 4-person business,” a CAA insider says. Disgusting inference by the Death Star. Well, that “little 4-person business” just took one of your star clients with them, so piss off and be try to be more professional with your statements next time.
I’m all for close friends helping each other succeed. Go Mark Wahlberg redux!
Actually, I think that was a relatively diplomatic way to handle it: don’t shit on the departing agent who will be repping a talent you may want/try to work with again one day but at the same time let the world know that you aren’t worried his departure will cause any widespread calamity.