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Tierra Davis
UWRT 1102
Ella Voltz
EIP Essay
21 October 2014
The impact of the NBA on the economy
The National Basketball Association is one of the single largest profits in the world.
It produces nearly $5 billion in one year and it is growing by the second. The NBA has an
enormous impact on the economy in various ways. Not only do these associations
entertain the world, but it brings in billions, leading to city improvement as well as
improvement around the world.
The city of Charlotte is one of the fastest developing locations in North Carolina. It is
where money is being disbursed all over allowing the community to improve. They are also
the home to the Charlotte Hornets. Every year, the NBA holds an All-Star Weekend where
the most elite players join together and play one another other. By having the best players
join together, the event brings in more fans than you could envision. Journalist, Jeremy
Markovich reported, We're going to take a weekend in mid-winter and make $100 million
in the city of Charlotte. (Markovich). With the abundance of money coming in, the Hornets
could use it to revive the stadium, but as well donate to the public. The donations could go
towards schools to improve learning environments, as well as low income programs this
would be beneficiary for not just Charlotte, but for any city.
A major bonus for the Hornets is their owner, Michael Jordan. Michael Jordan is one
of the greatest basketball players of all time. Although Michael Jordan is not from North

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Carolina; it is still an important milestone of his life. He attended the University of North
Carolina at Chapel Hill, where he played basketball. With him being the owner it brings
more attention to the team, creating even more income. Forbes magazine wrote, Team
owner and NBA Hall of Famer Michael Jordan has pumped millions of dollars into the
money-losing franchise for working capital since buying it for $175 million in 2010.
(Charlotte). Before Jordan, the organization was collapsing, but with the help of Jordan the
franchise began to rise. The money and motivation Jordan invested turned it around
completely. The Hornets were also among the leagues top beneficiary system concerning
revenue. The franchises total revenue is estimated at $115 million. (Charlotte). While
the majority of the income is used for the teams benefit, a percentage of it goes to charities
and community events. Each event the team sponsors allows them to better and give back
to the community.
Numerous people have no idea where the Hornets organization began. Several
people think that the NBA decided to put a team in Charlotte. However, a man by the name
George Shinn was the mastermind behind this franchise. George Shinn was not a new face
amongst the sports community. He was the owner of numerous sport organizations. He
was an owner to the Charlotte Knights, Gastonia Rangers a minor league baseball team, and
the World League of American Football. Reporter Joe Posnanski wrote, He was a self-made
millionaire he, rather famously finished dead last in his high school class in Kannapolis,
N.C. and nobody seemed entirely sure how he made those millions. (Posnanski). Shinn
proposed this great idea of placing a NBA team in Charlotte. At this time Charlotte was not
as nearly developed as it is today. Posnanski reminiscences on his first Charlotte encounter,
Downtown was called Uptown. Restaurants closed at 9. The baseball was Class AA, played

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in an old ballpark made out of wood that, one day, simply burned to the ground.
(Posnanski). Before the Hornets, Charlotte was not necessarily known for anything, so
Shinn put his mind to making a difference.
With the money that Shinn had, he started up the organization. Eventually people
despised him for various reasons but ultimately, many people believe that he is the reason
that Charlotte has matured so much. He took the initiative to take a leap of faith that
eventually paid off, providing Charlotte with one of its main sources of income and
entertainment. The economy of not only Charlotte, but of the whole state has improved
greatly just because of the major effect that the Hornets have on the community.
In 2011, the NBA endured a lockout, meaning the new contract among the players
and the NBA were being contemplated. This caused chaos all over the country. The players
were under a harsh public spotlight throughout the NBA lockout and in the months leading
up to it, their worthiness and moral fiber seemingly questioned at every turn. The owners,
meanwhile, have emerged virtually unscathed. Their behavior, their beliefs, even their
extraordinary wealth are rarely mentioned. SB Nation wrote an article on the lockout,
Namely, thousands of arena employees will be out of work, and business that have long
existed as satellites to NBA arenas and teams will suffer. (Sharp). The economical
influence the lockout had on the country was unbelievable, threatening countless
employees and associations. Without a continuous income flow, several franchises cannot
function appropriately. The NBA is already one of the economys core suppliers and the
lockout frightened everyone, threatening to send the economy in a downfall.
The NBA has a massive influence on the economy of the United States as well as
cities that host teams. Several organizations give back to the community and donate to

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other organizations in need. The league manufactures money flow and offers
entertainment at the same time. That is the most beneficiary way to lift the economy and
the league is doing very well in accomplishing it.

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Works Cited

Markovich, Jeremy. "What's the Economic Impact of the NBA in Charlotte?" Web log post.
WCNC.com. N.p., n.d. Web. 5 Oct. 2014.

"Charlotte Bobcats." Forbes. Forbes Magazine, n.d. Web. 07 Oct. 2014.

Posnanski, Joe. "A Brief History of the Charlotte Hornets." Web log post. NBC Sports. N.p., 22
May 2013. Web. 6 Oct. 2014.

Sharp, Andrew. "The NBA Lockout, And The Hidden Economics Of The Home Team."
SBNation.com. N.p., 6 Oct. 2011. Web. 07 Oct. 2014.

Surdam, David G. The Rise of the National Basketball Association. Urbana: U of Illinois, 2012.
Print.