LeBron James Becomes Partial Owner Of The Boston Red Sox In Historic Move
LeBron James is expanding his business repertoire after becoming part-owner of the Boston Red Sox.
March 16, 2021 at 8:56 pm
Fenway Sports Group announced Tuesday that James, alongside friend and business partner Maverick Carter, now own an “undisclosed amount of shares” making history as FSG’s first and only Black partners, The Boston Globe reported.
According to Forbes, FSG is valued at over $6 billion.
LeBron James to become part owner of Red Sox, both he & Maverick Carter each join Fenway Sports Group as partners, first and only Black partners in FSG history.
FSG also approves $750M investment from RedBird Capital Partners. Deal pending MLB approval.https://t.co/N7gibdlNhs
— Michael Silverman (@MikeSilvermanBB) March 16, 2021
A source disclosed that the multi-million dollar deal between FSG and RedBird Capital Partners still needs to be approved by the Major Baseball League (MLB), which could take several weeks.
This FSG partnership will also allow James to have shares in other FSG subsidiaries, including NESN, Roush Fenway Racing and Fenway Sports Management, The Boston Globe reported.
Before acquiring a stake in the Red Sox, James already held minority ownership in a different FSG managed team— an English soccer troupe known as the Liverpool Football club. James grabbed a piece of the soccer team in 2011, shortly after FSG purchased the club for $477 million. The British team is now worth approximately $2.6 billion.
James’ 2% stake, which was originally worth $6.2 million at the time of the acquisition, is now worth $52 million, according to accounting firm KPMG's metrics.
"I see LeBron owning multiple teams someday," Fenway Sports president Sam Kennedy told ESPN. "Not just NBA, but perhaps international soccer and maybe in esports. One thing we've learned working with LeBron is that he sees the big picture. He has a track record of making smart decisions and looking for opportunities. He's also been very successful financially, and that's what you have to do to become a sports team owner."
Due to rules preventing current players from owning NBA or WNBA teams, James is unable to purchase one at the moment. In the interim, his FSG investment will take him in the right direction.
The basketball-star-turned-businessman also has a lifetime deal with Nike, projected to catapult him to billionaire status.
“It’s breaking down the barriers,” James's agent, Rich Paul, told CNBC. “You’re talking about a game that was once limited. Jackie Robinson and Roberto Clemente – guys like that people didn’t even want to play the game. The Negros had to have their own league to us now owning and representing in that business sector. It’s a testament to us continuing to evolve and not being complacent.”
At the NBA All-Star Game in 2019, James shared with reporters that upon his retirement, he plans on following his dreams of finally owning an NBA team.
"I believe if I wanted to, I could own a team or be part of a basketball team, he said. "I know I got so much knowledge of the game that I don't want to, once I stop playing — I just [do not] want to get away from the game."