This was a finance project I did for my finance class and the assignment was to create a report and presenation about an organization and a major loss they had in their business.

1. How much did the Cavs, Cleveland and northeast Ohio really lose?

2. When LeBron James decided to take his talents to south beach…. Businesses in downtown Cleveland expect to lose approximately $48 million dollars. The average crowd size is expected to drop to an estimated $14,000 fans per game. That’s $6,500 less fans, multiply that by 41 home games. They say an average fan spends $180 dollars at a game. This also doesn’t count the playoffs, the city of Cleveland estimates a $15 million dollar loss for each playoff game. So on top of 41 home games add 10 home playoff games.

3. How much will the value of the Cleveland Cavaliers drop? Prior to James’ departure the franchise was valued at $476 million. The Cavs were valued at $258 million in 2003 prior to him being drafted. The value rose to $298 million in 2004 and in early 2005 Dan Gilbert bought the team for $375 million dollars. Currently, Forbes magazine puts the cavs value at $376 million with Lebron alone at $100 million.

4. What about his Taxes? With his salary James pays nearly $400,000 yearly in taxes to Cleveland, Independence, and Akron combined. LeRoy Brooks an economist from John Carroll University says that “it’s not just the money be brings to the city, it’s the atmosphere, and the lifestyle he brings to the town.” He keeps Cleveland alive, and makes it a more appealing place to live.” “Why do you think people idolize sports so much anyway? because they are very important to a city.” Cavaliers Team President Len Komoroski said prior to the superstar’s departure “you can’t underestimate Lebron’s impact on our community and our region.”

5. The Decision…. An hour long ESPN special where Lebron announced to the world that he will be “taking his talents to south beach.” The Decision was watched by nearly 10 million people across America making it the third most watched cable program of the year. The Decision generated more than $2 million to the Boys and Girls Clubs of America as well as a million dollars in assets. Besides Cleveland and Akron the donations will be made to the organizations in Chicago, Los Angeles, Miami, New Jersey, New York and Connecticut representing the NBA teams he pursued.

6. Reactions…

7. Reactions… Cavs majority owner Dan Gilbert responded by sending out an open letter to fans calling James’ decision a “cowardly betral.” He also guaranteed that the Cavs will win an NBA championship before Lebron does. Gilbert also blasts Lebron saying that the “self entitled King will be taking the curse with him down south, and James and the town in which he plays will always own this dreaded spell and bad karma.”

8. Reactions to Gilbert’s Letter Dwayne Wade opened up calling Gilbert’s Letter a dishonest man venting about his frustration and loss. He was quoted by the AP saying that “I’m glad I have the owner that I have here in Miami.” Jesse Jackson called the letter something written by a slave master and accused Dan Gilbert of calling Lebron a runaway slave. “He paid his dues.” Jackson said. Michael Lee, a beat writer for the Washington Post called the letter something an angry insane cycopath would write to his GF who cheated on him. Lebron fired back on his twitter account saying that “I can’t control what Mr. Gilbert says or thinks about me. I had to do what I felt was best for myself and my family. My mother always told me that you see someone’s true colors when they hit adversity, and I’ve seen the true colors of that man.”