LeBron James Return Worth $500M: Cleveland Official

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July 14 (Bloomberg) -- Cuyahoga County Executive Ed FitzGerald explains what LeBron James' return to Cleveland means for the county's coffers. He speaks with Pimm Fox on "Taking Stock." (Source: Bloomberg)

Return of lebron james.

Ed fitzgerald, give us some details.

How did you get to the half-billion dollar figure?

Yeah, thank you.

Can you hear me?

Yes.

How did you get to this half-billion dollar level to lebron james's potential contribution?

Part of it is that we collect and admission tax on attendance at cavalier games.

After lebron left in 2010, that dropped precipitously.

That ended up costing us a few million dollars.

That is not a bond service payment that we make every year.

If we do not collect enough taxes, it comes out of our general revenue.

That is the first thing that will rebound and we know it will rebound to old numbers because they are already selling out as fast as they can sell tickets.

It will return to sell of numbers and it is not just that the attendance goes.

At one point there were only about 12,000 people attending per game.

Once lebron was there, goes up to 20000 and it will be back at 20,000. it is not just the attendance of the game.

It is how many games there are.

We were not making it into the postseason.

If we make it, which most people assume we would if we -- we will at this point, we talk about more economic impact.

On top of that you are talking about an additional 500 employees that we believe will be hired and basically the hospitality industry as a result of those additional people coming downtown each week.

That is people in restaurants and bars, parking attendants and everything in between.

It is another 500 employees with all of their spending power and everything that goes into that.

If you add everything up, our estimate is that it is about a $34 million increase in direct spending by cavs attendees.

On top of that, you have 28 million dollars in wages that we think are increasing from about $110 million to $130 million a year.

You have direct spending that can be equally -- easily calculated that is over $50 million.

If you look at the total effect of having the acsvcavs downtown, you're talking about 107 million -- $170 million or so.

We you take all the multiplier effect and the ripple effect of everything that does from casino revenues to property tax increases or valuation increases , the high end of that range is $500 million.

A more conservative multiplier would be around 300 million.

Ed fitzgerald, cleveland seems to be on a roll.

Tell about its role in politics, the republicans are going to be holding their convention?

We are very proud of that and i say that even though i am in the other party.

We started a couple of years ago saying that we thought we were poised with all the investment we made in a new convention center.

We are building a new hotel.

There are 500 hotel projects underway.

A lot of infrastructure and amenities that have been added.

We thought we had a great chance to bring a convention.

The first time in 80 years that a national political invention -- convention will be in ohio.

With the 50,000 visitors plus, we think it is going to result in about $200 million in economic, additional economic spending.

It is hard to put a price tag on the fact that cleveland in the last 10 days have gotten better press than at any time in my lifetime.

It has been an underrated

This text has been automatically generated. It may not be 100% accurate.

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