FitzGerald highlights increased revenues for region that is already stronger than 2010

CLEVELAND – During a press conference this afternoon, Cuyahoga County Executive Ed FitzGerald today outlined the significant benefits that LeBron James’s return to Cleveland will have for families in Northeast Ohio.

“Last week, Clevelanders learned not only that our city will host the 2016 Republican National Convention, but that LeBron James is returning home to play for the Cavs next season,” said FitzGerald. “While we already know that LeBron’s decision is a tremendous boost for our civic pride, it is also going to have very real benefits for the middle class families who live here in Cuyahoga County.”

At FitzGerald’s direction, the Cuyahoga County Fiscal Office reviewed the potential economic and financial benefits of LeBron’s return for Northeast Ohio. According to their analysis, they expect an annual direct economic impact of $170 million from Cavs games, and combined with indirect and induced impact, approximately $500 million annually for the local economy, especially through the restaurant industry, convention business, and hotels not just in Cleveland but throughout Cuyahoga County and Northeast Ohio.

The average attendance at Cavaliers games went from slightly less than 12,000 before James joined the team to roughly 20,500 during his final season in Cleveland – an increase of more than 370,000 attendees per season (not including playoff appearances). Although attendance has slipped since then, FitzGerald’s team expects attendance to once again max out ticket sales during the coming season. Since 60% of Cavs game attendees come from outside Cuyahoga County, the increased attendance figures will be crucial for bringing in money from Northeast Ohio.

In addition, lower attendance in recent years has meant that admissions tax revenues that go towards debt service payments have plummeted from $7.2 million to $3.5 million, forcing the County has been forced to spend more out of its General Fund to cover these required payments. Increased ticket sales during the 2014-2015 NBA season should result in about $3.5 million being freed up for other priorities like economic development, local infrastructure investments, and social services.

“I want to stress that these projections are based on where Cleveland was four years ago when LeBron left, and as a result they’re very conservative. In just the past few years, we have leveraged $500 million in economic development investments and created more than 1,100 permanent jobs in downtown alone from Western Reserve programs,” added FitzGerald.“We’ve opened a state-of-the-art Cleveland Convention Center on-time and under budget and just broke ground on a new $270 million Convention Center Hotel. Cleveland will get stronger because of LeBron James, but it’s important to note that he’s coming home to a city that is even stronger than the one he left four years ago.”

Other anticipated benefits include a $34 million increase in annual direct spending by Cavs attendees from $136 million last year to $170 million annually. And based on industry-standard assumptions, the County Fiscal Office anticipates that the number of jobs directly supported by the Cavs will increase by 500, from 2,200 per season to 2,750 per season. Personal earnings (not including player salaries) should increase by $28 million, from $110 to $138 million annually – contributing towards an additional $6.5 million in new sources of state and local revenues.