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The Business of King James

Urban Marketing Group Staff

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After years of fumbling around with the rebuilding of a franchise in Northeast Ohio, it is now official. LeBron James will be heading to Los Angeles this summer in a four year, $154 million-contract, declining to exercise his $35.6 million player option with the Clevland Cavaliers.

There were indeed legitimate championship contending teams interested in James’ signature. The Philadelphia 76ers needed a superstar who has been there, done that. The Houston Rockets would have immediately become favorites had James joined forces with Chris Paul and James Harden. There were even talks that he could land in Toronto. But the four-time MVP and two-time Olympic gold medalist, at 33 years old, wasn’t going to make this decision lightly. Unlike “The Decision,” it was never going to be purely on a team’s basketball acumen or history.

WHERE THE KING GOES, THE MONEY FOLLOWS

Everywhere he goes, James, along with his billion-dollar body, carries an economic windfall that is parallel to no other athlete. Shortly after James announced his return to Cleveland in 2014, Cavaliers’ ticket sales spiked by more than 100 times, jumping from $25 to a staggering $386. Season tickets sold out within hours, and according to a Cleveland.com report, his return to Ohio resulted in a nine-figure economic boost for downtown Cleveland.

In the wake of his announcement, Lakers season tickets, which were selling for $3,499 each, skyrocketed to $5,800 just 20 minutes after the announcement. One person, according to ESPN Wpaid $188,781, including fees for four season tickets on StubHub. The seats, which are 16 rows up, one section off the center, are for regular-season games and do not include the playoffs. The Lakers preseason tickets, now on sale, have doubled in price to $550 plus fees.

LEBRON JAMES’ BIG ECONOMIC IMPACT:

A 2017 study published by the American Enterprise Institute (AEI) quantified the effects that the 33-year-old forward had in Cleveland with the Cavaliers and his brief stint in Miami when he played for the Heat from 2011 to 2014.

By playing in both cities, the data showed that James’ presence had a huge impact on their local economies by boosting restaurant revenues, ticket sales, and job creation. The number of eateries and bars within the mile of the stadium where he played at the time increased by 13%, with employment within those establishments increasing by 23.5%. While, on the other hand, those numbers dropped when James was not on either team.

Earlier in the year, BLACK ENTERPRISE took a look at the cities that would benefit the most if King James joined their NBA team through a study conducted by FormSwift. Had James joined the Knicks, he would have an estimated $1.7 billion economic impact on the city, bringing the state $1.2 million in tax revenue and over 12,000 new jobs over a five-year period. In comparison, if the NBA star signed with the Brooklyn Nets, the state’s economy would receive about $441 million, 3,334 jobs, and $32 million in state tax revenue. Had he moved to Washington, D.C., he would bring the nation’s capital over $66 million in state tax revenue, 3,200 jobs, and more than $444 million in total local economic impact in five years.

Read more @ Black Enterprise

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Black-Owned Cosmetics Line, Pat McGrath Labs, Valued at $1 Billion

Urban Marketing Group Staff

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Sean “Diddy” Combs Slams Lack Of Investment In Black Entertainment In ‘Variety’

Urban Marketing Group Staff

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Sean “Diddy” Combs has emerged as one of entertainment’s top moguls with involvement in a number of industries and entities that span music, fashion, liquor, and television. In a cover story for the latest issue of Variety, Combs slams the entertainment industry’s lack of investment in Black creative endeavors, calling Marvel’s Black Panther a “cruel experiment” to illustrate his point.

Speaking with the mogul from his Beverly Hills home, the featured story revealed that Combs had plenty on his mind about how Black entertainment suffers from a lack of investment from funders and the industry at large. It goes in hand with Combs’ past desires of wanting a piece of an NFL team and appears to be a growing focus of passion for him to see the playing field evened out in the film, music, and fashion industries as it relates to Black originators.

Read more HERE

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Mayor Bowser Makes Washington, DC the First City in the U.S. with a Green Bank

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On Tuesdsay, Mayor Bowser signed the District of Columbia Green Finance Authority Establishment Act of 2018, officially making Washington, DC the first city in the United States to establish a green bank, an innovative policy tool that seeks to expand renewable energy, lower energy costs, reduce greenhouse gas emissions, and create green jobs.

Green Banks are capitalized with public funds which are then used to offer loans, leases, credit enhancements, and other financing services to close funding gaps for clean energy projects. By creating a Green Bank, DC will be able to accelerate the deployment of clean energy technology by removing upfront costs, leveraging private investment, and increasing the efficiency of public dollars.

Learn more HERE.

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