Turns out Lebron James is just like the rest of us

I’m not much of an NBA fan.  I much prefer the passion and the more-than-occasional defense demonstrated in NCAA hoops.  I am, however, a sports fan and do keep up with the latest happenings.

On Thursday night, live on ESPN, Lebron James informed the world which team he would be signing with this off season.  This moment was anticipated since he signed a short-term extension with the Cleveland Cavilers just a few years back.  Speculation has been rampant.  Would he stay in his hometown area in Cleveland?  Would he go to the most important media market in the world and resurrect basketball in New York?  Or perhaps indulge the new Russian billionaire owner in New Jersey?  Would he follow the legacy of Michael Jordan and take his talents to Chicago?  What about heading down to Miami where he could join stars Dwayne Wade and Chris Bosh?

The anticipation culminated in a special one-hour ESPN program specially devoted to him called “The Decision.”  Sitting across from sportscaster Jim Gray in a Greenwich, Connecticut gym with Boys and Girls Clubs program participants looking on, Lebron informed the world that he would be leaving Cleveland and taking his talents to Miami in hopes of winning his first NBA championship.

Many factors surely played into Lebron’s decision.  Yet, when all was said and done, it turns out that Lebron is just like the rest of us.  He’s an entrepreneur who wants what’s best for himself and his family and wants to try and be the best in the vocation he has chosen.

It is no secret that Lebron desires to become a billion-dollar athlete.  With lucrative endorsement deals and the minimum of the $250 million he will make in the NBA during his career, he may just get there.  That is, if he doesn’t pull a Tiger Woods.  In order to get there, however, Lebron needs to be in a state where high-income earners are less penalized.  In New York, according to the Business and Media Institute, Lebron’s income would be taxed at 12.85%.  In Ohio, he would pay nearly 6%, in New Jersey nearly 9%, and in Illinois 3%.  In Florida, however, there is no personal income tax.  In fact, the Tax Foundation ranks Florida’s state/local tax burden 47^th in the nation.  On the same list Ohio ranked 7^th, New York 2^nd, New Jersey 1^st, and Illinois 30^th.  Therefore, even though Lebron will be making less money in Miami, the amount of income he will be able to keep far exceeds that of other places.

If having no personal income tax was not enough incentive for Lebron, the desire for excellence in Miami likely pushed him over the top.  As Jim Gray in the interview alluded to, greatness in the NBA is determined by winning multiple championships.  To date, Lebron has yet to reach the highest team achievement (he has won the league’s MVP award twice – in the past two seasons).  While James could have helped any team compete, joining two established stars in Miami strongly increased the chances that he will get that elusive ring.  The pursuit of excellence is certainly an American trait.  Americans try to become the best in their niche or their field.  Lebron is no exception.  The opportunity to form the best team in the league was too hard to pass.

In sum, Lebron desired to pursue excellence while avoiding being encumbered by burdensome state and local tax policies.  If we were in Lebron’s (Nike) shoes, I’m pretty sure, all things being equal, that you and I probably would have made the same decision.

Besides, in the middle of winter, where would you rather be?  Cleveland, Chicago, New York?  I think not.