Nazir Spencer
Success in the NBA can lead to a boost in the team’s local economy. Losing although, can lead to a neutral impact on the economy as well. For example, the Golden State Warriors have been a dominant force throughout the entire NBA, winning 3 out of the last 5 NBA finals, having a 71-9 record in 2016, and having some of the most talented/best players on their team. Doing this caused a huge impact on the Golden State Area, and also led shoe sponsors to gain more revenue as well with the players wearing their brand. The Milwaukee Bucks have recently been making noise in the Eastern Conference of the NBA, and have brought up the rankings of the city of Milwaukee itself. In the past 6 years, Milwaukee has boosted their revenue from $109 million, to now $204 million. The NBA has a positive effect on the economy when there are teams who are performing at a high rate.
Having a great NBA team can help a city out significantly with the income creating jobs, but what about the market size? If you compare the Golden State Warriors to the Memphis Grizzlies, the market size is a complete difference due to playoff appearances, and the cities that the teams may play in. This results in more of a neutral economy for the Grizzlies. The population of a city is important, and having a successful team is a boost for the population itself along with the revenue that comes with it. These teams can create jobs, sponsors, increase the likes of businesses, which puts their city atop of others when it comes to the marketing process.
The players on NBA teams are either special to the viewers, or not so special. You look at Lebron James, and the first thing that usually comes up with him lately, is his move to Los Angeles Lakers and the dynasty that is soon to be made there. The “Lebron Effect”. Wherever Lebron James chooses to play, the local economy boosts rapidly. Data has revealed that wherever Lebron goes, local restaurant revenue raises, ticket sales obviously raise, and the creation of jobs rise. Without Lebron, the Cleveland Cavaliers would not have won an NBA title, and been brought to know as a threat in the league. This shows that not only do NBA teams positively affect the local economy, but so can individual players.
Ultimately, the NBA has a lot of ups and downs throughout the league, with teams doing great and those doing not so great. Those who do great have more of an impact on the cities and on the team itself which brings in all the money, and the revenue builds up throughout the years. Each team can boost the economy with the wins they get, and can also boost their ticket prices as well when in win mode. This can also bring in more revenue for the city and the team itself. This is beneficial for both the team and the individual players. The NBA overall is a positive when it comes to the economy and the cities the teams play for.
Works Cited
Arcgis.com, www.arcgis.com/apps/Cascade/index.html?appid=0f0e56b92bc24bc9aa1b0d4fa9f4a12a.Bizjournals.com, www.bizjournals.com/sanfrancisco/blog/2016/06/warriors-post-season-boosts-bay-area-hospitality.html.
Brickhouse, Cheria. “NBA Finals Cause Major Economic Impact On Host Cities.” Homes.com, 6 June 2018, www.homes.com/blog/2018/06/nba-finals-economic-impact/.
“Golden State Warriors Revenue 2001-2018.” Statista, www.statista.com/statistics/196716/revenue-of-the-golden-state-warriors-since-2006/.
Hill, Selena. “Study: The Economic Impact of LeBron James on His Next Team's City.” Black Enterprise, Black Enterprise, 2 July 2018, www.blackenterprise.com/economic-impact-lebron-james/.
I really like that you took a topic that isn't really discussed in a high school setting (budgeting for athletics) but made it prevalent to something so well known (GSW/NBA). I also think it was really smart for you to add the portion at the end that expresses how when a city's sports team makes a lot of money, that it brings in revenue for the city itself by having more attraction to the city.
ReplyDeleteProfessional sports these days have a much greater impact on the economy than most people know. So much money goes through these teams and organizations that centralize a great amount of cash. I also really like the "Lebron effect" info graphic it brings insight to the issue at hand and is a little mindblowing,
ReplyDeleteI highly agree with this post because of the increase in ticket prices for games when superstars come to the team. Every time that Lebron switches teams his new team immediately starts making more money. When you look at ticket prices they usually increase by about $100. This is also seen when a team that may be bad comes to a stadium near you. Even though the team may be garbage the one player on there team that everyone wants to see will increase the prices of tickets for that particular game.
ReplyDeleteWhat surprised me is that the NBA actually has a positive impact when it comes to the economy. But reading this article also makes me think, sense the Milwaukee Bucks are making such a big impact on the economy, are the Milwaukee Brewers doing the same thing? I feel that when one individual player makes a impact, it's because of the player that they are or who they are in general. Everyone know Lebron James is good and can make a impact anywhere he goes. That also goes for Stephen Curry and Kevin Durant.
ReplyDeleteAlthough I did know some of this information, I also did not think about some key points that you had listed. I now realize that population also has a key factor in how the teams economy does, and where they play, because as everyone knows, golden state is great in wealth. This is because of the cities population and the significance of playing in California. I also agree with how each player brings in high revenue based on their rankings and fame.
ReplyDeletePro sports affect the cities a lot and it is very apparent. Do you think that by having a sports team and having a better sports team do you think that those cities become more of a vacation destination. Also does the teams getting new stadiums also affect the economy? Also does the cities economy affect how good the teams do or is it only the other way around?
ReplyDeleteIt is clear by all of your evidence that doing well in the NBA has a positive affect on the economy of the city, and you stated that it stays neutral if the team is just doing okay, but what is the affect of the team doing good for a few years, but then totally dropping in the following years? Does this plummeting of the team cause the economy of the area to drop too since people are not coming to all of the games that they used to? Also, if something bad happens on the team legally or ethically, will that also affect the town and the people living in it? This makes it seem more like an investment to have a team because the more publicity it gets, the greater the possible economic boost, but it could also cause a downfall if they fail. Unless, however, the publicity from doing something bad could cause more people to look into that NBA team, which would be once again beneficial. Similar to investing again, over time the economy would probably increase by having an NBA team, there just might be some jumps in the short term market, like what stocks look like if you look at them over a few months compared to years of investment.
ReplyDeleteI was surprised about the Lebron Effect. I knew that having a good NBA team/franchise generates more revenue for a city, but I was shocked to see how much impact one player has on not only the team, but the city as well. Here in Milwaukee, we can draw parallels to the Lebron Effect with Giannis. Giannis definitely drives ticket prices up, but it would be interesting to see how much he generates for the city. Also, I liked the fact you mentioned the playoffs. Having a deep run into the NBA Playoffs not only grants more games (which in turn increases the number of ticket sales), but also adds to the city's hype. Restaurants and bars create new menu items and drinks. Sports memorabilia stores see a boom in sales. Additionally, there are just more people - and potential consumers - floating around the city. I think the chart/graph mentioned about the Golden State Warriors was also interesting. It's no wonder with players like Steph Curry and Klay Thompson that the Bay Area has a great economy. Winning the NBA Finals and playing host to league MVPs and All-Stars definitely has its perks, and the economy feels the benefit of these things.
ReplyDeleteNazir, this is a phenomenal article. One that I have thoroughly enjoyed as some of the other topics are not as appealing. It is interesting to see something like the LeBron effect mold the economy wherever he goes, what would happen if Giannis left even though he said he wanted to stay in Milwaukee? I don’t know if you had a chance to look at the economy of Brooklyn because they not only got one big name but two! Kyrie is able to play for this season but what about KD? Does the economy react when KD will be able to play? What about their new court, will Kyrie and the new court boost Brooklyn’s economy?
ReplyDeleteI think it is sort of cooling thinking that the NBA is affecting the economy because that is something that doesn’t come to mind every day. I guess now thinking about it, it makes more sense because with more attention being drawn to the team, more people will start to buy tickets, spirit wear, shoe sponsors, etc. It all really depends on how good can the team perform and who all plays on the team. With the Bucks making it farther this past year, more and more people started attending games and also with the Fiserv Form being new, it draws even more attention in. I never would’ve thought that the NBA affects the economy even just play one team or one player.
ReplyDeleteYou mentioned that the income of the players and team is affected when they have a good record due to the increase in income from sponsorships and such. In addition to that, the surrounding markets are also boosted due to the success of a team. A company that sells merchandise will have a dramatic increase in people wanting the goods which is a change in demand. The demand increases due to trends within the consumers based on the success of the team. The opposite is also true because if a team isn’t doing as well less people will want to support the team causing a decrease in demand. The shifts in demand affect the economy because they determine the profits of producers and sellers.
ReplyDeleteI agree that the NBA helps boost the local economy by bringing in visitors from the opposing state. By bringing in fans from the opposing state, hotels are booked, restaurants increase their revenue, and the NBA team of course raises their revenue as well. However, you mentioned that there is this effect called “the Lebron Effect”, and basically what it was is that wherever Lebron James goes, restaurants gain more revenue, tickets are sold more, and the local economy boosts more because Lebron James is playing in that city. Personally, I don’t believe that this is a real thing. Most people support one team because they like that team, most don’t go and support a different team just because a certain player changed teams. However, this effect may just exist solely because the opposing team also brings in visitors from the opposing team. So technically, wherever one team goes, they will always bring more revenue with them. It doesn’t necessarily mean that one player can solely affect the revenue from one team.
ReplyDeleteYou mentioned that a team's revenue is based on playoff appearances and success within the team, however, what if a team's success fluctuates a lot? does the amount of showing and revenue also change with it? I also do believe the Lebron James effect as every city he has played in, he has brought a massive influx of people.
ReplyDeleteI never realized how much power sports teams or even individual professional players have on the economy. It makes complete sense though that a really good team or individual would draw the attention of fans all throughout the country and possibly even the world. This would cause an increase in business revenue in this particular city and even create various new jobs to compensate for this increase in population. Additionally, it would be interesting to look at the adverse effects and see how if an NBA team is doing extremely bad, what would the consequences be for that city? This is an intriguing concept to have researched and makes me want to see if other professional sports teams have as high of an effect on the economy as the NBA does.
ReplyDeleteI was surprised about the Lebron James effect. I never knew that Lebron or any, one person could have so much of an impact. You wouldn't believe it especially what NBA players do. However one thing to note is has this ever happened before? For example has Michel Jordan had the same effect on the economy just like Lebron?
ReplyDeleteIt's clear that the NBA has ups and downs in the league, which obviously means that the team either does good or bad. Having an effect on the city really convinces customers to not go and purchase to watch anymore games that feature a particular team because of how bad they're doing. Nevertheless, Lebron James has an increase in revenue because of Lebron effect dynasty.
ReplyDeleteGreat article one of the best in my opinion, totally agree with you, but I never new that the Bucks revenue doubled in less than 4 years, also I thought it was even more interesting that where ever Lebron goes the tickets double, now that's what I call having a great career. But love to topic and very well written.
ReplyDeleteI think that this is a really interesting topic to choose, yet one that not many people would think about. Like Milwaukee, in the last season when we went really far, restaurants near the stadium were booming because people who didn't have tickets would watch the games at bars so that they could enjoy the environment. I think that you did a really goo job with explaining how the economy goes up depending on who is on which team and how they have an influence on the city.
ReplyDeleteI was very intrigued by this topic and I never knew that the Bucks was making THAT much money. The restaurants in the area are making their money when the Bucks are playing well. It's safe to say that when the Bucks are playing well then the city is thriving.
ReplyDeleteI really liked the idea behind this. I believe that NBA teams and all-pros have a big impact on the cities that they play in based upon how they are performing. But you didn't give very many specific statistics on how we can see this play out in real life. Also I felt that the reasoning given was a bit repetitive. Although you did bring up relevant reasoning and a good basis of situations to support these ideas.
ReplyDeleteWOW! I did not know the NBA affected the economy in such a big way. In hindsight it does make sense that the NBA produces so much wealth. This was a very nicely worded blog post with much brevity as it didn't over complicated the topic. This article further intrigued me not only as a sports fan but as a student learning about the economy.
ReplyDeleteI think that your take on the different markets like San Francisco and Memphis sheds a light that most casual fans of the sport just wouldn't understand and I thought that your wording was concise and very clear with much brevity. I think that the LeBron effect is really cool and it shows just how much business can boom with a superstar coming.
ReplyDeleteI think that nearly everything you said was a "yeah this makes sense" sort of reaction. When I think about it, when sports fever hits a city, everybody seems to be more involved, and economic prosperity definitely increases while a team is doing well. Think of last year when the Bucks were in the playoffs along with the creation of the Fiserv. Games were sold out, there were scores of people outside, and local business in and around the Fiserv flourished. As Han said, This article further intrigued me not only as a sports fan but as a student learning about the economy.
ReplyDeleteI would totally agree that having a sports team being successful affects how much money you make. If you look at the Miami Marlins, those bums can barely get 7,000 people to come to their game on a regular basis. It's because the team isn't successful. It makes total sense that a team's success is linked to the team's, and city's total revenue.
ReplyDeleteMost people know that the NBA brings about a lot of money to those involved, but most don't know how beneficial it actually is for the economy. I really like how you included both statistics and hypothetical situations to allow for easier ability to relate to even non sport watchers. Very well done!
ReplyDeleteIt's crazy how many things impact the economics of the NBA. If a team is located in a bad area and doesn't have any great players that attract fans, their money that they're making will be much lower than other teams. The LeBron effect that you visualized really creates the wow factor. Everyone wants to see the Cavs play because of him. No one else on his team has the special talent as him, but people still buy tickets for him.
ReplyDeleteThis is very similar to any other professional sport. Both success and star power lead to an increase in revenue for that team/city. Additionally, some cities bring additional revenue to the team, making larger cities like New York, Chicago, and Los Angeles better for professional teams. Because of this, these cities host many multiple teams. New York has 2 teams in baseball, basketball, and football. Chicago has two baseball teams. Los Angeles has 2 football teams. Because of the relationship between cities and professional sports teams, both cities and teams can economically benefit from these relationships. This is the magic of professional sports, and why they are so successful.
ReplyDeleteWhile there is a direct economic benefit, that also doesn't take into account the morale of the workers in the area. Generally speaking, if morale of employees go up because their team is doing well, people will be more productive which could increase the economy in a given area, especially if it is a larger market.
ReplyDeleteThinking of the NBA, I thought their revenue would only benefit the owners and those within the organizations. I never took into account positive impact that a teams success would have on the cities economic success and how it would do so. This had great examples of how the economy can prosper with the success of their cities team.
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