Would LeBron make a good fiduciary?

Last night, LeBron “King” James, the two-time league MVP and past NBA scoring champion, and arguably the most sought after free agent player in the league, made a decision on where he would play the next segment of his short, but superstar career.  The press coverage was astounding, reaching crescendo with his live announcement on ESPN entitled “Decision 2010.”  As I watched the broadcast, it occurred to me that LeBron may make a good fiduciary.

LeBron needed to decide where to continue his career.  As a free agent, the ball was largely in his court.  He set his priorities: winning an NBA championship was number one.  He and his trusted advisors defined a due diligence process to be used to help make the best decision for him to meet his objective.  The process consisted of quantitative and qualitative factors, to be sure.  He applied the process.  Meetings were held; presentations were given by the finalist candidates.  He took his time and considered all the facts and factors that would play into his decision.  He smartly consulted with his trusted advisors.  Finally, he made the decision that lined him up best to obtain his goal of winning an NBA championship. 

Whether or not he knows it, by setting his objective, doing his due diligence, following a process, and focusing on his goal, LeBron exhibited the skills of a good fiduciary.  For example:

He set priorities. The foremost of which was putting him in a situation where he had the best opportunity to win an NBA championship. Having a clearly defined objective lended well to his next step.

He defined a due diligence selection process. Factors likely included:

• The organization, management, coach, and teammates;
• The team history of success; and  
• The compensation he would receive.

Note the parallels with the fi360 Fiduciary Score™ factors that evaluate: Stability of the organization, track record of the investment, and performance relative to peers.  

Importantly, he followed the process.  He faced enormous pressure, but stuck to his process and kept his focus on his objective.  This enabled him to be disciplined and rational, avoiding potential mistakes, including:

• Listening and reacting to “market noise.”  For example, the incumbent lobbied hard for his return.  
• Chasing performance in terms of money or ego.  Certain finalist candidates offered him an opportunity to make much more money than others and also be the sole superstar on the team.
• Being complacent.  He had an opportunity to remain with the incumbent who was familiar and easy.  LeBron grew up in that location, had his family there, and all the comforts of home.

He consulted with trusted advisors throughout.  Knowing that his skills were on the basketball court, he smartly sought counsel from professionals.

He met the call to action and decided.  Executing your decision in a timely manner is important.  And remember, he has no guarantee of success (winning an NBA championship), however he has put himself in the best position to do so with the facts and circumstances now known

Let me know what you think.  Does LeBron have a future career as a fiduciary?

[By the way, if you’ve somehow managed to avoid the newscasts, radiocasts, email alerts, blog posts, tweets, and office water cooler, LeBron selected the Miami Heat.  Other finalist candidates included: the Cleveland Cavaliers (the incumbent), the New York Knicks, the New Jersey Nets, and the Chicago Bulls.  Time will tell whether LeBron's decision ultimately yields him an NBA championship.]

Comments

[Don Germano AIFA]

LeBron did follow a disciplined process despite his comment to the contrary regarding the timing of his decision.

Of course, the fact that he was/is a good fiduciary doesn't make those of us in the Cleveland area feel any better about the decision.

[John Hawkes]

He followed a process which may even have bordered on violations of law or NBA law anyway. It seems that much of the groundwork was done when he was still under contract.

So that might mean that although he followed a process he may have been violating the law... and is that what a fiduciary is all about? Violating the law?

[Bennett Aikin]

@John Hawkes:
Andy's post was meant only as an analogy between the process an investment fiduciary must employ and the one LeBron described using in free agency. No deeper opinions or judgments were intended.

We don't know enough about the collective bargaining agreement between the NBA and the players' union to have an opinion, but a recent NYT story quoting David Stern suggests that no rules were violated: http://www.nytimes.com/2010/07/13/sports/basketball/13nba.html