The Bag Presents the Rich Paul Business Review
🎲🎲 Klutch Sports 🏀 ⚾ 🏈 Klutch Athletics 👟👟 Contracts 📃💰 🏁🏁🏁
“No matter where you go, you are what you are, player
And you can try to change but that's just the top layer
Man, you was who you was 'fore you got here
Only God can judge me, so I'm gone
Either love me or leave me alone” ~Jay-Z “Public Service Announcement (Interlude)”
Often, the significance of historical moments isn't immediately recognized. It usually requires time and reflection to fully understand the impact of certain events or individuals.
Larry Bird recently expressed his admiration for LeBron James, urging people to appreciate his greatness while he's still active. "Quit whining about LeBron," Bird remarked. "Enjoy him while he's here. He's unbelievable. He's one of the greatest, if not the greatest ever.”
While Bird's comments specifically highlight LeBron's talents, my appreciation is similar but also extends to the entire team behind the athlete.
LRMR Ventures has revolutionized the industry, following in the footsteps of pioneers like Roc-A-Fella and setting precedents for others like OVO. The collective expertise and entrepreneurial acumen of LeBron James, Rich Paul, Maverick Carter, and Randy Mims have set a new standard by developing a strategy to create influential products and companies. Throughout this process, they have remained true to their authentic selves, paving the way for others and contributing positively to their communities.
While my coverage will extend to all members of this remarkable team, this Bag Drop focuses on Rich Paul. We delve into his career achievements with Klutch Sports and Klutch Athletics, illustrating how his formidable upbringing molded him into the legendary sports agent and entrepreneur he is today. And best believe, he was who he was before he got here.
The Bag Presents The Rich Paul Business Review.
“You only know what you see
You don’t understand what it takes to be me…” ~Jay-Z “Lucky Me”
To truly grasp the significant impact Rich Paul has made in the business realm, we must explore his roots and the formative experiences that shaped him. Rich's background was anything but privileged; he did not emerge from suburban comfort, nor did he benefit from an Ivy League education or familial connections in high places.
He sharpened his skills in the challenging environment of Glenville, Ohio, a neighborhood in the eastern part of Cleveland. While his role as LeBron James' agent is well-known, fewer people are acquainted with the full extent of his journey and the obstacles he overcame to achieve his present level of success.
In line with Muhammad Ali's observation that "The fight is won or lost far away from witnesses – behind the lines, in the gym, and out there on the road, long before I dance under those lights," Rich's struggle commenced from the moment he was born. Growing up with a drug-addicted mother and a father who maintained a separate family, Paul was introduced early to resilience.
Working in his father's store, R&J Confectionery, as a young boy, he learned vital skills and principles that would later anchor his character and drive his professional achievements. He gained insights into the value of serving others, honed his ability to perform mental calculations quickly, and mastered the art of using words to defuse tensions. These early lessons provided him with the toolkit to become one of the most prominent sports agents of all-time.
Moreover, Rich cultivated a deep sense of respect and learned to maneuver through dangerous situations with grace.
His New York Times best-selling memoir, "Lucky Me," provides a raw and detailed account of the trials and tribulations of his upbringing. It delves into his experiences of financially supporting his drug-dependent mother, the constant uncertainty about his next meal, and his interactions with deceitful individuals he describes as "slept rocks."
An important lesson he shares in his memoir is the imperative of wholehearted dedication to mastering any endeavor.
Though it's commonly known that LeBron James was originally drawn to Paul because of a distinctive Mitchell & Ness Warren Moon jersey, an equally important aspect of their connection is Paul's proactive approach to his own success. He displayed a willingness to take risks and position himself advantageously, exemplified by his decision to travel to Atlanta from Ohio to work in Andy Hyman's store, "Distant Replays.” This commitment was not only for learning the business ins and outs but also for securing discounts on jerseys. No matter the craft, Paul's dedication was unwavering.
Rich Paul's story is a testament to the power of determination and resilience, highlighting that success is less about one's starting point and more about the determination to pursue one's goals relentlessly.
“Men lie women lie, numbers don't
Ain't nothing changed for me except the year it is
I think I have to send you a reminder
Here it is…” ~Jay-Z “Reminder”
Paul launched Klutch Sports in 2012, following a six-year tenure at CAA.
To provide some context, here's a comparison of the inception years for various agencies and approximately when they initiated their sports divisions:
CAA (Established in 1975 - Entered sports in 2006)
Excel Sports (Established in 2002 - Entered sports in 2002)
Klutch Sports (Established in 2012 - Entered sports in 2012)
Priority Sports (Established in 1985 - Entered sports in 1985)
Wasserman (Established in 2002 - Entered sports in 2002)
The significance of this information is multifaceted.
Primarily, it highlights that Rich is competing with firms that have been entrenched in the sports representation arena for significantly longer periods.
Moreover, the representation industry is fiercely competitive. It's a battle to lower fees to zero percent in some scenarios, with agencies sometimes reducing their charges to entice new clients as a strategic move to draw in additional business. Furthermore, larger agencies often attempt to woo athletes by showcasing their other longstanding divisions, claiming expertise in various sectors.
However, despite these challenges and the advantage of longevity that other agencies might have, there is no stopping Klutch Sports’ motion.
“I went from pauper to the President
'Cause every deal I ever made set precedent” ~Jay-Z “So Ambitious”
A review of HoopsHype shows that Rich Paul has secured some of the most lucrative contracts in the NBA.
Paul, who maintained his composure in the tough neighborhoods of Cleveland, naturally brought the same calmness to the basketball negotiation table.
In what can be seen as channeling the wisdom of Kenny Rogers, Paul’s debut contract negotiation at Klutch Sports involved Eric Bledsoe and the Phoenix Suns, establishing his commitment to advocating for his clients.
The ethos of Kenny Rogers’ song "The Gambler" captures the essence of Paul’s strategy:
“You've got to know when to hold 'em,
Know when to fold 'em,
Know when to walk away,
And know when to run.
You never count your money
When you're sitting at the table.
There'll be time enough for counting
When the dealing's done.”
Paul turned down the Suns' initial qualifying offer of 4 years at $28M in June 2014. Firm in his conviction that Bledsoe deserved better for his on-court performance, the Suns ultimately agreed, signing Bledsoe to a 5-year, $70M deal in September 2014, effectively doubling his annual earnings from $7M over four years to $14M over five.
In 2018, Paul brokered a groundbreaking internship for the highly rated basketball prospect, Darius Bazley, with New Balance. This deal, offering Bazley a $200,000 base salary for five years guaranteed plus a potential $14M from a shoe contract based on performance incentives, presented an innovative alternative to the conventional college pathway.
Once again, Paul and his client fearlessly pursued a unique approach, challenging a system where the interests of athletes and institutions often diverge.
Predictably, the NCAA was displeased with a player opting out of their system for an unconventional path, and in a move aimed at curtailing Paul and his influence, they introduced a policy in August 2019. This policy mandated that all agents must meet specific requirements, including holding a bachelor’s degree, to represent athletes.
This led to the dubbing of the new regulation as the "Rich Paul Rule."
“All of this just for them or they got a diss for him
They want me to disappear like it's gon' shift for them
They say that I'm in the way, they want me to sit for them
But what they admitting is they ain't got sh*t for him” ~Jay-Z “Already Home”
The policy, which was quickly rescinded after just a few days, further underscored Paul's burgeoning influence and his reputation as a catalyst for change, unconcerned with traditional practices.
This reputation, grounded in his commitment to acting in the best interest of his clients regardless of potential repercussions, has made him the agent of choice for some of the most talented and renowned basketball players.
If it's not him then you got it confused, y'all not rememberin'
My motto is, simply "I will not lose!" ~Jay-Z “It’s Like That”
Analyzing the top-selling NBA jerseys during the first half of the 2023-2024 season reveals that Rich Paul is the only agent that represents three of the top 15 players in terms of jersey sales.
During the 2024 NBA All-Star game, viewers would have noticed four of Paul's clients on the court: LeBron James, Anthony Davis, Tyrese Maxey, and Trae Young. Alongside Bill Duffy from WME Sports, Paul was distinguished as the sole agent representing four players in the game.
However, Paul's achievements extend beyond merely representing basketball players; his aspirations reach far wider.
In 2019, the Klutch Sports Group entered into a partnership with UTA, resulting in Paul taking on the role of Head of the newly established UTA Sports, marking a significant expansion of his influence and vision.
“I do the opposite of y’all so I just attract
The realer audience usually unjustly Black
Know my flow and the sh*t they go through just match
Like the sound of my voice and a choice Just track
I just tackle the subject, the flak from the public is nothing
I know real n*ggas happen to love it
If you don’t like it, then look in the mirror
Most likely you ain’t live it so you don’t get it
You ain’t did it, so you can't vision, the picture I’m painting
Ain't vivid, the language I’m spitting is so foreign to ya
See what starving'll do to ya
Growin' up hard in a little apartment'll do to ya” ~Jay-Z “Pump It Up Freestyle”
Since their collaboration, Paul and his team have transformed Klutch Sports Group and UTA Sports into a leading force in the representation of athletes across all major sports.
In January 2020, they expanded their portfolio by acquiring the football division of Revolution. This growth continued with the acquisition of Tidal Sports' baseball division in April 2020. The momentum didn't stop there; in May 2023, they brought Elite Athlete Management's football business under their umbrella, followed by acquiring Rep1's baseball division in December 2023.
While it's expected that some talent and agents might part ways over time, the significant achievement lies in how quickly Paul, alongside UTA Sports Co-Head Andrew Thau, has established UTA as a comprehensive service provider across all sports sectors.
Currently boasting around 200 clients with 80 employees, the team at Klutch Sports stands out for its diversity, breaking away from the industry norm of predominantly white male dominance.
Instead, Klutch Sports showcases a rich variety of backgrounds among its leadership and staff.
The agency has been proactive in promoting gender equality within its ranks.
In April 2023, Nicole Lynn was promoted to President of Football at Klutch Sports, recognizing her substantial contributions and ensuring her expertise was elevated rather than restricted. In November, Venessa Hutchinson joined as Senior Director of Football Coaches and Executives, and Erika Ruiz made history as the first Latina NBA agent.
Klutch Sports doesn't just limit its focus to men's sports; it actively supports rising stars in women’s basketball like Kendall Dudley, Judea “JuJu” Watkins, and established athlete Jewell Loyd, among many others.
At Klutch Sports and UTA, empowerment is a fundamental principle, whether it's in support of athletes or colleagues, reflecting a commitment to fostering talent and diversity within the sports industry.
“Remind yourself
Nobody built like you, you designed yourself!" ~ Jay-Z “A Dream”
While reviewing Forbes' data from November 2022 on the top sports agents by contracts and commissions, I felt compelled to delve further into the age of each agent and their tenure in the industry.
Scott Boras stands out not only for his extensive career but also for being nearly 30 years older than Rich Paul, with a career span (45 years) that exceeds Paul's entire lifetime.
Moreover, the next closest agent in age within Forbes' Top 10 is still a decade older than Paul.
For many of these top agents, reaching the pinnacle of their profession took decades. In contrast, Paul has catapulted his firm into the top tier within merely twelve years.
The reality is, Paul's trajectory and approach set him apart from his peers.
“And if somebody woulda told 'em that Hov would sell clothin'
Not in this lifetime, wasn't in my right mind
That's another difference that's between me and them
I smarten up, open the market up” ~Jay-Z “U Don’t Know”
How many agents have ventured into creating their own clothing line?
Moving beyond just agents, consider how few individuals have managed to secure their own dedicated space in retail stores. This accomplishment speaks volumes about the significance of the brand Rich Paul has built; it resonates deeply with people on multiple levels.
Rich Paul's influence extends far beyond mere contracts and negotiations. It embodies hope, ambition, perseverance, and community through Klutch Athletics.
In 2018, Rich Paul and Darius Bazley initiated a partnership with New Balance, a year when the company's global revenue hit $4 billion.
Following this partnership, Klutch Athletics clients like Dejounte Murray, Zach LaVine, and Tyrese Maxey joined New Balance's basketball roster, making up four of the seven basketball athletes represented by the brand.
In December 2021, amidst the ongoing Covid-19 pandemic, Paul launched the Rich Paul Collection with New Balance. A notable success from this collaboration was the New Balance 550 shoe, which, as reported by Andscape, sold 10,000 pairs in just 45 minutes.
Encouraged by the success of this capsule collection, Paul went on to collaborate with New Balance's owner, Jim Davis, and his team to develop a full product line.
Klutch Athletics is primarily owned by Paul, with New Balance serving as a partner in this business venture.
Forbes reported that in 2023, New Balance achieved its highest ever revenue, grossing $5.3 billion. This represents a significant increase of $1.3 billion since the brand aligned with Paul in 2018, highlighting the impactful synergy between Paul's vision and New Balance's brand.
“Black entrepreneur, nobody did us no favors
Nobody gave us sh*t, we made us” ~Jay-Z “I Did It My Way”
Exploring the background and achievements of someone like Rich Paul brings a sense of hope. In a society that often celebrates sensationalism over meaningful contributions, witnessing someone succeed on their own terms is genuinely uplifting.
Rich Paul's journey is not about conforming to media expectations, chasing fame, or generating clickbait. Instead, it's about authenticity and standing firm for his beliefs.
Kevin Spacey once remarked, “If you're lucky enough to do well, it's your responsibility to send the elevator back down.” Rich Paul embodies this principle, and his actions speak volumes, often louder than words could.
While I could enumerate all of Rich Paul's accolades, they speak for themselves through this graphic. The clients, the board of director positions, the companies he’s founded, the plays he’s running with Adam Mendelsohn, the deals he’s putting together with Paul Wachter, the doors that he and his LRMR colleagues are kicking down, the list goes on and on. The list is extensive, yet it's clear he's only just begun. What he has achieved in a short period of time surpasses what many of us hope to achieve in a lifetime. However, his most significant accomplishment may well be showing others, no matter their starting point, how to maximize their impact and realize their full potential.
Where you start doesn’t have to be where you finish.
