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  1. #31
    I put a top 10 player up there for a reason. The kid isn't there yet, but could be.

    Also, I am an accountant. I understand what you all said above. Rather than work through the process of guessing what he paid, I just went with a very conservative profit guess compared to a top 10 player shoe contract value. Ball might be an ass, but the win side in this is potentially huge. Couple that with the fact his kid won't be a top 10 talent in the league for a few years.

  2. #32
    All-Conference LA Muskie's Avatar
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    After about the Top 10 or so, just about no one else makes any money on major company shoe deals -- they get merch deals. Several upstarts (particularly from China) are trying to break in with a royalty model.

  3. #33
    All-Conference LA Muskie's Avatar
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    Quote Originally Posted by ArizonaXUGrad View Post
    I put a top 10 player up there for a reason. The kid isn't there yet, but could be.

    Also, I am an accountant. I understand what you all said above. Rather than work through the process of guessing what he paid, I just went with a very conservative profit guess compared to a top 10 player shoe contract value. Ball might be an ass, but the win side in this is potentially huge. Couple that with the fact his kid won't be a top 10 talent in the league for a few years.
    A good friend of mine is a part owner in an upstart basketball shoe company. The cost of manufacturing is nearly negligible compared to other costs. Maybe Lavar thinks he can sell at volume with no overhead, relying nearly exclusively on social media to market. If so, he will be a trailblazer -- and will laugh all the way to the bank. And I will eat crow. But I expect BBB is far more likely to fail than succeed.

  4. #34
    All-Conference Juice's Avatar
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    Quote Originally Posted by LA Muskie View Post
    After about the Top 10 or so, just about no one else makes any money on major company shoe deals -- they get merch deals. Several upstarts (particularly from China) are trying to break in with a royalty model.
    It's a little better than that. Players with their own signature shoes:

    Nike - Lebron, Kyrie, Paul George, Kobe, Durant
    Jordan - Chris Paul, Melo, Westbrook (sort of. He wears the signature Jordan model and has a lifestyle shoe of his own)
    Adidas - Rose, Harden, Lillard
    Under Armour - Curry
    Anta - Rondo, Klay Thompson
    Li Ning - Wade
    Peak - Tony Parker Dwight Howard, Dellavedova, George Hill

    That doesn't include guys who have very lucrative deals to wear certain brands models:
    Adidas - Wiggins with the Crazy Boost
    Jordan - Blake Griffin with the Ultrafly line (Griffin makes 6 mill a year without his own shoe)
    And this list isn't complete. These are only people I can think of right now.

  5. #35
    All-Conference LA Muskie's Avatar
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    Quote Originally Posted by Juice View Post
    It's a little better than that. Players with their own signature shoes:

    Nike - Lebron, Kyrie, Paul George, Kobe, Durant
    Jordan - Chris Paul, Melo, Westbrook (sort of. He wears the signature Jordan model and has a lifestyle shoe of his own)
    Adidas - Rose, Harden, Lillard
    Under Armour - Curry
    Anta - Rondo, Klay Thompson
    Li Ning - Wade
    Peak - Tony Parker Dwight Howard, Dellavedova, George Hill

    That doesn't include guys who have very lucrative deals to wear certain brands models:
    Adidas - Wiggins with the Crazy Boost
    Jordan - Blake Griffin with the Ultrafly line (Griffin makes 6 mill a year without his own shoe)
    And this list isn't complete. These are only people I can think of right now.
    That's why I said "or so" and limited it to "major" shoe companies. Top 10 was too limiting, but I've seen the market research -- the VAST majority of NBA players make nothing -- other than free merch -- for wearing certain shoes.

  6. #36
    I was just using top 10 to make it easy and under the assumption he turns into that player. This guy could sell 10k pairs and make out like a bandit. However, he could flop and make nothing. That said, the shoes could flop but Lonzo the player could turn out great and it still works out. The brand can survive one son not working out. He needs one of the three to kill it in the NBA.

  7. #37
    All-Conference Juice's Avatar
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    Quote Originally Posted by ArizonaXUGrad View Post
    I was just using top 10 to make it easy and under the assumption he turns into that player. This guy could sell 10k pairs and make out like a bandit. However, he could flop and make nothing. That said, the shoes could flop but Lonzo the player could turn out great and it still works out. The brand can survive one son not working out. He needs one of the three to kill it in the NBA.
    Rumors are going around that he has an offer from Adidas for about a million a year. Obviously that comes with his dad abandoning any partnership with Adidas and BBB or anything else the dad may want.

  8. #38
    All-Conference LA Muskie's Avatar
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    Xavier signing apparel deal with Big Baller Brand? (Likely Not)

    You know what else was baller and marketed exclusively through social media "influencers"? Frye Festival...


    Sent from my iPhone using Tapatalk

  9. #39
    Supporting Member GIMMFD's Avatar
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    He might have made a good business move in BBB shoes rather than a shoe contract, but seriously $80-100 would have been the right move, keeps them in a competitive range in price with Nike and Adidas, probably get more profit, because people would probably actually buy them at a reasonable price??? Anyways, he's an ass and possibly the most annoying person in the media, and that's with Skip Bayless around.

  10. #40
    Supporting Member Emp's Avatar
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    Quote Originally Posted by ballyhoohoo View Post
    I think everyone is underestimating how cheap things are in china.

    Actually Vietnam for shoes and apparel.

    Once his patterns and design programs are built for the Gerber automatic cutter it's all gravy.

    He probably has $1000 per shoe in epoxy based molds for the foam and plastic components per size.

    The NGT layout for the cutting of fabrics is probably $250 per size.

    Laces and lace grommets are probably off the shelf catalog items so no tooling and these are commoditized and prob $1.50 per shoe total.

    Not sure what he paid the designer but assume $10-15k

    So with tooling and development he probably has about $30k up front.

    I assume BBB doesn't have much over head and he'll utilize third part import groups so just a straight 25% on declared customs value (a guess on what Chinese export VAT and US import taxes are and ocean freight)

    Assuming he plans to sell 10k pairs he has $3 in development per shoe, I'd guess $25 material, $8 labor. $9 VAT/tariffs/logistics.

    $45 per shoe.
    Public and private reps for the analysis.

    But still..... a savvy novice can get back room accounting, shipping warehousing and logistics for $9? Design work on a shoe (a pretty rarified subset of designers who likely have no competes) for 15k? No brick and mortar location to look at the shoe or try it on? He's going to have to establish a huge inventory of sizes without any historical info on what sizes sell. . Repeat orders unlikely.

    On the one hand, tens of thousands have plunked down 3 grand for a 50k+ car from a guy who has never run a car manufacturing plant in his life..

    Still, I'm just not sure all or even a fraction of the gangbangers in America will spring 500 sight unseen for shoes. Certainly not actual basketball players.. I just don't see how he could get to 30 thousand shoes at even a fraction of 500$.

    And um where does he get capital to do all the up front costs?
    Last edited by Emp; 05-07-2017 at 03:32 PM.
    It's a still great day to be a Muskie, but a sad day to be a supporting member of this board.

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