The Los Angeles Lakers appeared to have bleak playoff chances in late February, with the team holding onto one of the final spots for the NBA’s play-in round and LeBron James potentially facing a season-ending foot injury. However, James made a miraculous return to the court a month later, stating that he was healing faster than anyone previously seen with the injury. Since his return, the Lakers have won three of their last four games and seem likely to make it to the playoffs with a few games left to play.
LeBron James has been known to accomplish superhuman feats on and off the court since joining the NBA in 2003. In June, Forbes reported that James had become a billionaire, along with Tiger Woods, making them the first athletes still active in their respective sports to achieve a ten-digit net worth. James and Woods earned their wealth through unmatched athletic success and endorsement deals throughout the past two decades, building impressive investment portfolios along the way.
The 2023 World’s Billionaires ranking includes 12 newcomers who owe their spots to the sports industry’s booming business. These new billionaires are among the many who have benefited from skyrocketing media rights deals, which have raised athlete earnings and team values across several leagues.
Last year, 94 of the top 100 most-watched linear telecasts in the United States were sporting events, and new media platforms like Netflix have increased the value of Formula 1 teams, resulting in Toto Wolff, the team principal and part-owner of Mercedes-AMG Petronas F1 team, becoming a celebrity billionaire due to the popularity of the Drive to Survive docuseries.
Profits, Success, and Wealth in the Game
Some wealthy individuals have found owning sports teams to be a lucrative asset for their families, as exemplified by several team owners such as Mark Davis of the Las Vegas Raiders, Amy Adams Strunk of the Tennessee Titans, and the Steinbrenner siblings who inherited ownership of the New York Yankees. While they have had varying levels of success managing their respective teams, all five have seen double-digit returns since taking over, demonstrating that success in sports business is not solely tied to triumph on the playing field.
Unlike stock market volatility, which has affected many billionaires in the past year, there is no indication that values and earnings in the sports industry are declining. This is good news not only for the current sports billionaires but also for those who may follow in their footsteps.
Some notable sports team owners include Robert “Woody” Johnson of the New York Jets, who recently returned to manage his family’s assets, including ownership of the NFL team, after serving as Donald Trump’s ambassador to the U.K. Larry Tanenbaum, chairman of Maple Leaf Sports & Entertainment, owns a portion of all major sports teams in Toronto.
David Blitzer, a Blackstone executive, owns stakes in several sports teams in partnership with Apollo Global co-founder Josh Harris. Amy Adams Strunk of the Tennessee Titans is one of several women who have joined the NFL’s ownership ranks, while Irving Grousbeck of the Boston Celtics helped lead an investment group to buy the team in 2003.
The Billionaire Athletes
In addition to team owners, there are also several athlete billionaires, including Tiger Woods and LeBron James. Woods has reportedly turned down a lucrative offer to join the Saudi-backed LIV Golf tour, as his career earnings, endorsements, and other income before taxes and agents’ fees exceed $1.7 billion. James, who recently broke the NBA’s all-time scoring record, continues to earn a high income from his Lakers contract and endorsement deals.
He has invested his earnings in real estate, entertainment company SpringHill, stakes in several businesses, and Fenway Sports Group, owner of the Boston Red Sox. Finally, Toto Wolff, a former racecar driver and team principal and CEO of the Mercedes-AMG Petronas F1 team, is also a billionaire due to his team’s success in the sport.
