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The economic impact of LeBron James' free agency

May 15, 2010, 12:00 PM EDT

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.

  1. rizzo - May 15, 2010 at 1:24 PM

    lebron is the ultimate stimulus package.

  2. TexasMike - May 15, 2010 at 9:31 PM

    You don’t have to worry about LeBron’s ego. It was unfazed by the thumpin the Celtics gave to the Cavs. He thinks he played a great series.

  3. Superman.mah - May 15, 2010 at 9:37 PM

    If LBJ wins a ring this year. Then for the ultimate challenge I think he should join one of the worst teams in the NBA (such as the Warriors or whoever) just to see if he could elevate them to playoff status. That would be the test of a true champion.

  4. Super Who? - May 15, 2010 at 10:41 PM

    Ummm, superman LBJ is already sitting at home as his team was eliminated from the playoffs….

  5. ocgunslinger - May 16, 2010 at 9:20 AM

    Bill Walton had it right!!!

  6. mikesporty - May 16, 2010 at 11:31 AM

    LeBron will be a champion soon… As a Clipper!

  7. Le - May 16, 2010 at 6:50 PM

    Superman LBJ already done that. How do you think the Cavs got him at the first place? They were lottery team, the worst team in NBA. Lebron brought them to final in 2007.

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