By Lamar Johnson
- LeBron is expected to add around $397M dollars to LA’s economy over five years
- Startup shopping app Wish paid up to $42M for a three-year Laker sponsorship
LeBron James is undeniably the best player in the NBA, and will take his talents to the Los Angeles Lakers after spending his first 15 years in the Eastern Conference. Due to the sheer gravity of James’ presence, wherever he goes, economic development follows. The startup shopping app Wish will directly benefit from him donning the purple and gold, after signing a three-year jersey sponsorship deal with the Lakers last year.
Why This Matters: James was the NBA’s most influential free agent on the market yet again, and capped the excitement by inking a four-year deal with the Lakers worth $154 million. It’s been proven James adds economic value to whatever market he’s in, and it should be no different in the City of Lights.
By moving to Los Angeles, James is expected to bring around $397 million in additional revenue and tax income over a five-year period, according to a study by Formswift. The same study anticipates an additional 2,989 jobs to be created by James’ arrival. Wish’s sponsorship deal is estimated have cost between $36 million to $42 million for three years, according to ReCode, and the shopping app is all but assured a boost in visibility with the James signing.
The startup gained the fourth-most value from free social media impressions, about a $5 million value, despite the Lakers never being in contention for the playoffs. That number should skyrocket as the sponsor of James’ last team, Goodyear, earned a league-high $21 million in social impressions with their brand on King James’ jersey.
Situational Awareness: In both Miami and Cleveland, James’ last two stops, eating and drinking establishments within a mile of the stadium saw a 23.5% increase in employment. Also expect a 13% boost in the amount of such establishments close to the Staples Center, according to a study by the American Enterprise Institute.
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