The Lebron Effect
For the city of Cleveland the Lebron Effect has been on display, ever since he left Cleveland for Miami, and then returned home in the summer of 2014. However this type of Lebron Effect is rooted in the economics of Cleveland. Cleveland’s local economy has experienced the positive externalities of the Cavaliers organization resigning Lebron James a few years ago. These positive externalities are felt by establishments like the bars and hotels in and around Cleveland. Lebron’s return increased revenue for 3rd parties like bars and hotels as his presence on the Cavs instantly increased interest in the team, leading to a packed house on game night for bars and more rooms being booked at hotels for visiting fans who are going to games. Bars in close proximity to the stadium, reportedly experienced a 30%-200% increase in revenue after his return. Other establishments such as sports shops selling Lebron merchandise also experienced significant jumps in revenue during his return.
Also, it was originally estimated that Lebron’s return would result in a $500 million boost to the Cleveland economy, while that number was off by quite a margin, the Lebron Effect still brought a 9 figure revenue increase to Cleveland’s economy. Finally let us not forget the Cavalier’s organization, as after The King’s return the average number of occupied seats at game time jumped upwards of 3,000. Proving that a single person can have a tremendous effect on an economy.
With the demand the fans have for Cavalier basketball at an all-time high due to the change in demand which was set in motion by Lebron, it is wise that the organization retain the main attraction, Lebron James. It would mean that the Lebron Effect would continue to positively impact Cleveland and further endear him to the fans, thus the Lebron benefits everyone; Cavaliers, Cleveland, Fans, and Lebron.
Works Cited“LeBron James means a lot to Cleveland — and its economy” Vox.com, 11 July. 2017,
“LeConomics: Is the economic impact of LeBron James' return to Cleveland more than a feeling?.”www.cleveland.com, 17 Feb 2015. http://www.cleveland.com/cavs/index.ssf/2015/02/lebron_james_cleveland_economi.html.