Cleveland Cashing in On LeBron James Effect

Economics Of LeBron: How He Became 6th Man For City Of Cleveland

Image: Cleveland Cavaliers

On Stubhub, a Row 1 ticket to the New York-Cleveland game hit nearly $14,000.

According to Data gathered by Bloomberg, “His return to the Cleveland Cavaliers will generate as much as $215 million annually in new and redistributed money for the franchise and Cleveland from tourism, taxes, service industry spending and the team’s business.”

That makes his $42 million, two-year contract with the Cavs a total steal. One of the rare times a max contract almost seems unfair. But James also has himself covered.

He can opt out of his contract and cash in when the salary cap is raised after the 2015-16 season as a result of the league’s brand new $24 billion television deal.

James’ jersey is the top seller in the league, according to Fanatics, the largest online retailer of licensed team merchandise. They also list the Cavaliers as the top selling NBA team, up 700% from the same period last year.

CNBC says, “James’ return means a huge opportunity for Cleveland itself. Cuyahoga County projects a $50 million boost to the local economy, as more jobs are created to meet visitor demand and more taxes collected due to increased consumer spending on tickets and in local businesses.”

Also noteworthy, restaurants, bars and other local eateries will be booked solid on the same nights as Cavaliers games. There are already reports of hiring sprees. LeBronomics has kicked into gear six and Cleveland will cash in. Like a sixth man with the hot hand, James came off the bench to help jump start Cleveland’s economy.

But in order to keep the green flowing and the good times rolling. The Cavaliers will have to keep winning.

Let’s play ball.