Lebron James brings 400mil and 3000 jobs to LA?

18 Replies

I read recently, Forbes I think, that his move to LA brings in 400 million new cash and 3000 jobs. That is insane and does that mean Cleveland loses 3000 jobs...or did Cleveland see any economical impact when he came back to Land?

He has two personal homes in LA valued at 45 mil total, idk if that is in the math though. The one below is the latest at 23mil.

I was thinking the same thing.. but I don't see how one person can have quite that impact but maybe in the trickle down effect..

Originally posted by @Jay Hinrichs :

I was thinking the same thing.. but I don't see how one person can have quite that impact but maybe in the trickle down effect..

 Yeah, seems out of whack and this includes his media empire Clutch something it is called...idk what it does exactly either. BTW that house is about 9 miles from Inglewood or 17 mins as we speak. 

How much money did he bring to Cleveland? How much did a championship bring in? I am sure there is truth in this, if attendance jumps- people eat around the stadium and also vacation to LA to see the possibly greatest player. I am too far from LA to feel this bounce but definitely believe there is upside to this as there is with Olympics/World Cup being in a country

@Matt R. , yeah I do wonder how they come up with that figure in terms of jobs/economic impact.. I guess if he keeps buying more mansions in L.A it'll keep his real estate agents  making good money too! But L.A is a much bigger economy of course so I could see it being a bigger loss for Cleveland. Kind of like if Amazon's new HQ came to L.A it wouldn't be as huge a deal for L.A as it would for a city like Cleveland or Detroit. 

I always do find it kind of interesting when these celebrities buy multiple homes in the same area. Brentwood is a very nice and exclusive part of L.A though. 

I've been noticing some celebrities that buy houses and then they list them for what might be break even or a loss even after paying real estate commissions/closing costs, property taxes ,maintenance over the time they owned it.. .and that's not even taking into account the massive amounts they likely spent on renovation. Of course the media headline makes it seem like they are flipping the home. I'm thinking might be some kind of tax strategy to it?.. 

The general market average homes have gone up a lot, but the luxury market is a lot different it seems. 

17 mins from Inglewood with zero traffic maybe haha, sometimes it can take 30 mins or more just to get on the 405 from brentwood...although haven't been around that area for a while during rush hour..used to commute from there to the SFV and with the construction and traffic on sunset would take forever just to get on the freeway.

Originally posted by @Danny Allegra :

To clear statement, there will be little to none noticeable bump to residential in LA. Bump right around Staples for businesses

 Yeah.. I don't see there really being a way for the average person to really profit on it. I could see L.A live restaurants/bars maybe doing better and probably good for AEG...owner of staples center/L.A live.. AEG is a private company though  so can't even buy the stock in it. Even so Staples Center  is just one of their many investments. 

Originally posted by @Joseph M. :

@Matt R. , yeah I do wonder how they come up with that figure in terms of jobs/economic impact.. I guess if he keeps buying more mansions in L.A it'll keep his real estate agents  making good money too! But L.A is a much bigger economy of course so I could see it being a bigger loss for Cleveland. Kind of like if Amazon's new HQ came to L.A it wouldn't be as huge a deal for L.A as it would for a city like Cleveland or Detroit. 

I always do find it kind of interesting when these celebrities buy multiple homes in the same area. Brentwood is a very nice and exclusive part of L.A though. 

I've been noticing some celebrities that buy houses and then they list them for what might be break even or a loss even after paying real estate commissions/closing costs, property taxes ,maintenance over the time they owned it.. .and that's not even taking into account the massive amounts they likely spent on renovation. Of course the media headline makes it seem like they are flipping the home. I'm thinking might be some kind of tax strategy to it?.. 

The general market average homes have gone up a lot, but the luxury market is a lot different it seems. 

17 mins from Inglewood with zero traffic maybe haha, sometimes it can take 30 mins or more just to get on the 405 from brentwood...although haven't been around that area for a while during rush hour..used to commute from there to the SFV and with the construction and traffic on sunset would take forever just to get on the freeway.

 I hear ya, and the commute from Brentwood to LAX/Inglewood is considered really short for LA. Like you could almost beach bike path it with an uber extra. In college I used to beach bike path to LAX/Imperial Airport from Redondo and it was about 30 - 45 mins or so as I recall. It was easy...totally flat. 

@Matt R. , yeah it's not too much a surprise why people are buying or looking to buy in Inglewood and South L.A. It's not cheap, but it looks relatively cheap compared to stuff in Culver City, Westchester areas and of course way cheaper than a place like Venice Beach. You are still not too far from the beach. There is big development with the stadium etc. High paying jobs nearby. 

One thing though Inglewood and South L.A seemed to get hit real hard last housing crash a lot more than those westside areas. Properties dropped about 50% or so and you didn't see that in the more prime areas. Not saying there will be another crash as severe like last time but at some point there will be a downturn and these areas I believe will still be more vulnerable. Crime including violent crime is still a lot higher than the westside neighborhoods too. 

Will be interesting to see what happens.

Originally posted by @Joseph M. :

@Matt R. , yeah it's not too much a surprise why people are buying or looking to buy in Inglewood and South L.A. It's not cheap, but it looks relatively cheap compared to stuff in Culver City, Westchester areas and of course way cheaper than a place like Venice Beach. You are still not too far from the beach. There is big development with the stadium etc. High paying jobs nearby. 

One thing though Inglewood and South L.A seemed to get hit real hard last housing crash a lot more than those westside areas. Properties dropped about 50% or so and you didn't see that in the more prime areas. Not saying there will be another crash as severe like last time but at some point there will be a downturn and these areas I believe will still be more vulnerable. Crime including violent crime is still a lot higher than the westside neighborhoods too. 

Will be interesting to see what happens.

Yes, And I have seen a little a celeb buying spree in Encino/Sherman Oaks or perhaps semi normal.... I guess they are getting a little priced out too and or better private school options maybe and even Lebron is sending his kids to Sierra Canyon out in Chatsworth from Brentwood. 

Yeah that part of the valley has definitely gotten a lot hotter in recent years. Restaurant scene on Ventura and shops/boutiques seem to have gotten more trendy than before. It definitely does feel like more celebrities are preferring the valley these days. Tons in Calabasas area.

It's kind of funny to hear Calabasas/HIdden Hills being shouted out in rap songs by Drake. They were nice areas but not really like hip or trendy like that before. 

I have a relative that works in Porter Ranch and he mentioned that about LeBron sending his kids there..guess I figured he'd send them somewhere on the Westside since his homes are in Brentwood.

@James Wise did a video on this regarding him leaving Cleveland. His economic impact could mean 500M or so.

Sounds impressive and it is but it likely won’t make a difference for landlords in LA or Cleveland.

Originally posted by @Joseph M. :
Originally posted by @Danny Allegra:

To clear statement, there will be little to none noticeable bump to residential in LA. Bump right around Staples for businesses

 Yeah.. I don't see there really being a way for the average person to really profit on it. I could see L.A live restaurants/bars maybe doing better and probably good for AEG...owner of staples center/L.A live.. AEG is a private company though  so can't even buy the stock in it. Even so Staples Center  is just one of their many investments. 

There is some other entertainment value to the story value...season tickets went up thousands, jerseys doubled...it has got to be more than just basic t-shirts, hotels rooms, airbnb double? idk...he is great and that is like a mini disneyland. 

I think he will provide a slight bump to the economy in California. But California is already a tourist state and did well even though the lakers were terrible last year(Kobe fan here). The bigger lost will be to the Cleveland economy. But I think it’s a strategy to make the value of the team go down a little until Lebron retires and Dan Gilbert(I think Warren buffet owns part of the team still) sells partial or the entire ownership to Lebron. I wish Chicago got a big name player. They will Be terrible next season as well. 

As someone from the Cleveland area I can say that he brought hundreds of millions of dollars and many jobs. From bars and restaurants around Cleveland to schools he opened in Akron, he has made a HUGE impact on the town and surrounding areas. His impact will still live on within his projects and community outreach programs but the there will be a significant drop in downtown business during basketball season with him away. I wish him good luck and respect him for what he did here and what he will continue to do even after he leaves.

Originally posted by @Ron Read :

But how many jobs were lost when Kobe retired? XD

 Maybe that was a slow drain idk, and I never read any reports on jobs for Kobe influence start or finish. I think Lebron is another level jobs wise maybe.