LeBron James is taking his talents home and most Cleveland fans just want a championship. But he may also bring an annual $US500 million boost to the local economy.
The number is based on calculations performed by the Cuyahoga County Fiscal Office and were presented by County Executive Ed FitzGerald according to Mark Niquette of Bloomberg.com.
LeBron’s economic impact will be felt directly by increase in attendance for Cavaliers games and the subsequent increase in demand at local restaurants, hotels, and convention centres.
In addition, the study speculates that the increase in demand for Cavs games will lead to an additional 500 jobs supported by the Cavaliers.
An economist came to a similar conclusion, telling Time.com that James will be worth $US495 million annually to the area in direct spending at games, increased demand at local businesses, and additional revenue generated during the playoffs, assuming the Cavs make the playoffs.
Another Cuyahoga County executive painted a much more conservative picture, estimating $50 million annually in new economic activity.
ESPN recently estimated that James was worth slightly more than $US50 million per year to the local Miami economy.
Whatever the real number is, you can be certain it is a lot more than the $US20.6 million the Cavs will pay James this season.
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