LeBron James and the Future of Cleveland’s Economy

For any avid NBA fan, it’s hard to escape the hype surrounded by the free agency of LeBron James. Since being drafted in 2003, James has rejuvenated the Cleveland Cavaliers as one of the league’s best teams. His ability to transform the Cavs as a premier basketball franchise has also impacted Cleveland’s local economy. As any Cleveland fan will tell you, downtown Cleveland has the energy of any major metropolis during basketball season. However, once James and company have left the court, downtown returns to its fledgling state, leaving many to worry about future of Cleveland’s local economy in an era without one of the world’s biggest superstars.

Adam Miller, corespondent for the Bleacher Report, weighs in on the immense impact James has had on the economy of Cleveland. In his piece, Miller, coins the term “Lebrononomics”, to highlight how James has already helped the city of Cleveland outperform market expectations. Currently, the Cleveland Cavaliers are the fifth most valuable team in the NBA, while the city is only ranked 18th in nation in terms of its standing as a premier basketball market. Other larger markets are beginning to recognize the economic potential of signing James. A recent Chicago business article estimated that if the Chicago Bulls sign Lebron James, it could bring almost $3 billion to the city. It’s clear that the implications for Cleveland could be devastating without James. In 2009, local tax revenues totaled $491 million, which is only $15 million more than what the Cavs are worth currently. This value without a doubt would drop dramatically with the departure of number 23. While it is a big leap to say that Cleveland’s entire economy is built on James, the city has certainly benefited as the local hotel, restaurant industry, and merchandise stores have all boomed in the era of “Lebrononomics”.

While I am one of the cities most passionate basketball fans, it is disheartening to find that so much of our downtown revival depends on an athlete. Local politicians are planning major outreach campaigns to woo James, and even citizens are mobilizing movements on Twitter and Facebook. Everyday it seems as if there is one more campaign or initiative to keep our best player. I wonder would happen if the people of Cleveland, with the support of our local officials, put the same vigor and excitement into mobilizing the city to reform our schools or attract new businesses.  For decades we have invested tax dollars and other resources to build stadiums and other developments that we think will solve our economic ills. But despite these investments, our city remains stymied by double digit employment and high levels of crime. For Cleveland to be competitive in the 21st century it is imperative that we get our priorities straight. The problems are too big and the stakes are too high.