|
Jordan economics
Bulls star not the only one making money
Posted: Wednesday June 10, 1998 01:10 PM
| |
Michael Jordan's presence in Chicago makes for a Windy City windfall (CNN/SI) |
ATLANTA (CNN/SI) -- If Michael Jordan
leaves the Chicago
Bulls, his impact won't only be felt on the court. By at least one
account, Jordan's impact on the U.S. economy is estimated at $10 billion.
But while his appeal is national -- even global -- for 13 years Jordan
has belonged to the city of Chicago. Every time Michael Jordan steps on to
the court at the United Center, between $8 million and $10 million are
pumped into the economy of Chicago. From parking, concessions and
souvenirs to restuarants, bars and tourism, Jordan and the Bulls are an
entertainment windfall for the Windy City. It's no wonder that lawmakers
and entrepreneurs here are holding their breaths -- and their wallets --
hoping Jordan doesn't retire after the NBA finals. Already, businesses
in the Chicago area are bracing themselves for life after Jordan. For
Gerald Roper, President and CEO of Chicagoland Chamber of Commerce, thinks
some of the figures could be dropped. "I would think it will have a
tremendous impact, unfortunately, on the city," Roper said. "I've got to
think you can probably take most of those figures and probably drop them by
50 percent, easily. By 50 percent." Lee Gramatis, Manager of Madison's
Cafe, believes he and everyone else touched by Jordan's effect, will be
hurt. "It will impact it," Gramatis said. "I think people still want to
go see the Bulls, but it will impact it significantly because he's gone.
That is our championship drive, he's the man. I think everyone will feel
it; the whole economy will feel it; the city will feel it; we'll feel it.
But we don't want to think about that just yet." "We probably can at
least attribute over a million dollars of just additional income built on
the excitement that he brings to the city," said Keeshin Tours President,
Paul Keeshin. When Jordan left the Bulls on his baseball sabbatical four
years ago, the chamber of commerce estimates that Chicago suffered a 20 to
30 percent dropoff in Jordan-related spending. But those numbers and the
spectre of another Jordan recession are disputed by at least one expert
observer.
This statue of Jordan outside the United Center is one of Chicago's most visited landmarks (CNN/SI) | |
Sports economist Allen Sanderson of the University of Chicago
believes people will spend their money in different ways. "I've often
said it joking, but I think maybe the best thing is to take a chamber of
commerce estimate and then move the decimal point one to the left,"
Sanderson said. "By that I mean 90 percent of it is either what economists
call leakages or substitution and 10 percent of it is probably actual
benefits to the economy. Sanderson doesn't think the economy and beer
drinking solely depends on Jordan playing basketball. "You give us
another recreation option like the Bulls or Michael Jordan, we will spend
some of our time and money that way," Sanderson said. "You take one of
those away, we just spend the same amount of time and money elsewhere. The
Bulls may well depend where people drink beer in this city, but I can't
imagine they affect how much beer is drunk." While the full value of
Jordan's economic impact on the city is up for debate, there is no
questioning the emotional impact Jordan has had on Chicago. More than
Oprah, pizza, the Cubs or the blues, Jordan has greatly enhanced Chicago's
reputation and its global recognition. In fact, the statue of Jordan
outside the United Center -- erected shortly after Jordan's retirement in
1993 -- is the second largest tourist attraction in the city after the
Hancock Building. And tourism is far and away Chicago's number one source
of revenue. "Tourism is what we're really focused on, you know, with the
demise perhaps of the Bulls," Roper said. "The tour operators use Chicago
sports through Michael to really help sell this city. We have some of the
Japanese people flying in just for one game, which is pretty huge."
Jordan's impact might not be fully felt until he's gone, that's why its
important to show appreciation towards him now while he's still around.
"We owe him a great, large thank you," Keeshin said.
| 
NBA Finals
