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  • Thumbnail for Does Gaining or Losing a Star Player Affect Franchise Valuation Differently for Different Teams?
    Does Gaining or Losing a Star Player Affect Franchise Valuation Differently for Different Teams? by McCully, Caroline Zara

    This study investigates a superstar’s affect on the value of different NBA teams. Two team’s values were examined over the course of ten years and then used to explore the statistical value of that player on each franchise. Recent literature has examined the impact of star power on NBA gate revenues and the effect NBA player’s have on policy and our economy but none has explored LeBron James’ significance to the two teams he has played for. The evidence presented suggests LeBron’s star power is more valuable to Cleveland. Additional empirical results are reported in the text.