You mean, "not because YOU think any specific kid might turn into the next Lebron James and stay loyal to them."
"They" are on record as saying exactly that.
From the Washington Post:
"Chris Rivers, Adidas executive in charge of youth basketball, explained to the new faces in the room why a German apparel company spends millions of dollars on what the industry calls “grassroots.”
“The only [expletive] reason we’re here is for pro prospects,” Rivers said, according to three people in the room who requested anonymity. “We are here to sign professional athletes.”
Rivers is the former longtime No. 2 to Sonny Vaccaro, the famed former Nike, Reebok and Adidas executive considered the godfather of grass-roots basketball. Dressed casually in Adidas gear, clothing that undersold his stature in college and professional basketball, Rivers warned Adidas team managers that the competition at Nike and Under Armour would “be doing things dirty,” according to people who were in the room, and said if they needed assistance recruiting a prospect, to contact him or one of his top consultants, a group he referred to as his “elite crew.”
For Nike, Adidas and Under Armour, grass-roots basketball is an educated gamble — money spent in the hope that, among thousands of teenagers playing in their leagues, a few will become recognizable stars for their sponsored college teams and develop into NBA players worthy of endorsement deals. The overarching strategy is to cast a wide net and hopefully attract the next generational talent who will develop a lifelong affinity for the brand — and sell truckloads of shoes.
“Nike, Adidas and Under Armour say, ‘Hey, if we allocate a few million a year, and it eventually gets us the next LeBron, then it’s worth it,’ ” one former Under Armour coach said. “All it takes is one star.”
The three companies do not publicly disclose how much they spend on grass-roots leagues. In interviews, grass-roots coaches in all three leagues said sponsorships range from $50,000 to $150,000 annually, with most teams on the lower end of the range. Using a conservative estimate based on these figures and the number of teams in each league, Adidas spends at least $2.5 million annually on grassroots, Nike $2 million and Under Armour $1.5 million.
Nike’s stronghold in college basketball — 56 of the 87 schools in the top seven basketball conferences wear Nike, compared with 18 wearing Under Armour and 13 wearing Adidas — is what incited the shoe-company-spending arms race to spread into youth basketball.
Collectively, the three shoe-company leagues act as a farm system for the next generation of college and NBA stars. And since their inception, these leagues have drawn the attention of people whose livelihood depends on getting close to those very same prospects.
The offers from agents and their runners start to flow in shortly after the player ascends national rankings, the former grass-roots coach said, but they seldom go right to the player. Instead, the offers go to whoever is seen as close to the player: a parent, an uncle or the grass-roots coach.
The former grass-roots coach, who worked for a team sponsored by one of the three companies, agreed to discuss the offers he received when one of his players, then 16, became one of the country’s top 10 players in his class a few years ago.
The runner for one agent said he could get a prominent college coach to personally donate to the grass-roots team — funding a significant salary increase for the grass-roots coach — if the player promised to attend that school and then sign with the runner’s agency.
When it came time to discuss money, the former grass-roots coach said, smaller, boutique firms were more likely to offer cash up front, with the promise the player would sign when he went pro. One agent offered $25,000; another, $50,000.
“I don’t really see what’s wrong with an agent wanting to pay me $50,000 to help them land a player who might make them millions,” the former grass-roots coach said. “In any other industry, that’s just good business.”
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