LeBron James; Cleveland’s Economic Savior? Not So Fast.
Finally, the King has come back to CLEVELAND!!! I, along with the rest of Cleveland sports fans were glued to the internet last week. Specifically Twitter was all the rage last week. I won’t lie, I was refreshing my phone as often as I could and I was looking for a decision from LeBron James. There were more rumors surrounding LeBron and his choice, than the CIA’s leads for terrorists. Everyone and their respective mothers, had a friend, who heard from their barber’s landscaper, that LeBron was 100% returning. The amount of fake news was staggering, but it made for a compelling week of internet surfing. Then, the official news finally broke. When the story broke across ESPN, I was on a mini-vacation with friends and we were tipping back a few beers. Yes, I know, it was barely noon when the news broke, but my partying habits are none of your business. I heard from across the pool complex, LEBRON IS BACK BABY!! So, my friends and I ran to the TV and turned to ESPN. There it was in a bright red breaking news banner; “LeBron to return to Cleveland.” The next 2 hours of partying were a blur, but all I knew was that LeBron was back and with him comes millions and millions of dollars back to the city. Not so fast my friends. If there is one rumor out there that is wildly misconstrued, it’s that Cleveland’s economy is driven by LeBron James. This is just not true, and I don’t just say this based on opinion. I say it based in economic facts. Fight all you want; as I did for many years in college with my Urban Planning Professor; the economy of Cleveland is not greatly affected by LeBron James. I will agree that LeBron could potentially bring an additional $30 to $50 million back to Cleveland. I hate to burst your bubble, but that isn’t a lot of money, and it’s not going to drastically change the Cleveland landscape. Here are some examples. When LeBron left Cleveland in 2010 it was supposed to be a huge loss for the Cleveland economy. Try and answer yes to any of these questions; Did all the restaurants downtown close? Did a large mass of people move out of downtown? Did the construction stop? Did the homeless population increase? Did the Cavs move because business was so bad? The answer to these questions is NO. Without getting too caught up in Economics, the City of Cleveland is doing very well compared to previous years. Since LeBron left, the Casino has opened, a new convention center was built, Cuyahoga County has opened new central offices, new restaurants have opened, the theatre district is thriving, and new apartments are being built all along Euclid Ave. Business seems pretty good. Let us look at some simple numbers. Here are the 4 years of attendance for Cavs games by year since LeBron left;
- 11) 20,112/game,
- 12) 15,926/game,
- 13) 16,192/game
- 14) 17,329/game
(Stats courtesy of http://espn.go.com/nba/attendance) The capacity of Quicken Loans is 20,562. The biggest difference in attendance was in 2012, and it was only down 4,636. It seems as though the Cavaliers and downtown Cleveland, are not really losing as much business as experts predicted. The reality is that without LeBron James, the city of Cleveland is actually growing. Large businesses, residents, and taxes are what drive an economy. A great example of an economic force is the Cleveland Clinic. In 2009, Forbes reported that the Clinic had a $10.5 Billion impact on the economy and they employ 41,000 plus people. (http://www.forbes.com/sites/dandiamond/2014/07/11/is-lebron-james-now-the-most-powerful-person-in-cleveland-no-this-guy-is/)The same Forbes report also had the following; “Back in 2009—LeBron’s last full year in the city—locals estimated that he had a $150 million annual impact on the region. (Although later, some business owners dialed back the rhetoric. “We haven’t suffered as much as ESPN would have you believe,” the manager of one downtown bar told the Huffington Post in 2012.)” Even the bar owners downtown came off of their claim that LeBron leaving would kill their business. Sure, millions of dollars are important, but that’s only pennies compared to places like the Cleveland Clinic. Without LeBron, people still went to games and they still spent money in the city. The life of downtown was still business as usual. To finish, I will agree that LeBron is no question good for the city of Cleveland. However, LeBron’s impact on morale will be felt far more than his impact on our economy. In case you haven’t noticed, I’m speaking directly at you ESPN, Cleveland is not the sad, lonely, and desolate place that the media makes it out to be. Cleveland is thriving with young talent, and for the first time in decades, young adults are moving back to the city and starting their lives here. This is no longer the mistake on the lake. This is the shining star of the resurgence that is the Rust Belt. Hey Detroit, we will lend you a pen and paper so you can take some notes. Written by Rick Giavonette- Follow me on Twitter @CST_RickG * Photo Credit to Rick Giavonette -I hear that guy is awesome.
