The economic impact of LeBron James' free agency

7 Comments

Some people think the estimated impact of LeBron James’ free agency is overblown. After all, it’s just one guy, with no rings, switching teams like free agents often do.

But there are are further implications, including economic impacts.

The Media Daily News outlines the impact on MSG’s stock if James were to elect to don the Knicks’ colors in July. The report from a Wall Street researcher showcases the possible stock jump in such a scenario. The financial bump would impact not only MSG as an arena, but all assets from marketing to television and offset ROI costs fro the arena rebuild project.

This may seem pretty intuitive, and the impact would be the same if James were to jump to another team. But it’s the degree of shift, magnified by the assets in question that make this notable. A major media entity would see a significant financial upturn if James switches zipcodes.

And that leverage alone has to boost James’ ego, which could probably use it after the last seven days.

Also notable? James’ yearly salary under a max contract would exceed both the CEO of MSG Hank Ratner and executive chairman James Dolan’s salary and bonuses.