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Follow the money, and the money will lead you to the best in the world – LeBron James.
Sunday afternoon the NBA’s most coveted free agent reached a four-year, $153.3 million agreement with the Lakers.
The economic boom James creates wherever he plays includes sold-out arenas, fully-booked restaurants, and sky-rocketing ticket prices.
How does James’ now calling Staples Center home affect ticket prices?
Within 20 minutes of LeBron’s agreement, the lowest Lakers season ticket prices on StubHub went from $3,499 to $5,800 per seat.
Without knowing the opponent on the Lakers’ opening night at home, StubHub has listed the game as “2018 Home Opener” with tickets starting at $450. By 8 p.m. Sunday night, StubHub’s minimum season ticket price moved again from $5,800 to $6,500.
Since LeBron's announcement to join the #Lakers, @StubHub's listing of Lakers season tickets has raised from a minimum of $3,500 to $6,500 (as of 8 p.m.). Without knowing the opponent, the home opener minimum ticket price is $450. pic.twitter.com/GOrkmN9rMI
— Tarek Fattal (@Tarek_Fattal) July 2, 2018
This type of price inflation accompanies LeBron wherever he goes. When he was drafted in 2003 to the Cleveland Cavaliers, when he went to the Miami Heat in 2010, then back to Cleveland in 2014.
The American Enterprise Institute documented the real-life economic impact of LeBron James in May of 2017. The study found that James’ impact raised business within a one-mile radius of the arena (both in Cleveland and Miami) by 13 percent, and raised employment by a staggering 23.5 percent.
With the rise of LeBron’s arrival comes the decimation of his departure.
ESPN sports business reporter Darren Rovell spoke to Cleveland ticket broker Mark Klang of Amazing Tickets, who anticipated that the tickets he held for next season would lose 60 percent of their value. Klang saw the same deflation the first time James left Cleveland for Miami.
“I can’t see it being any different,” Klang told Rovell. “Basketball in the short term here will be worthless.”
The NBA season schedule is expected to be released in mid-August. The 2018-19 season will begin in late October.
