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Abstract
This study investigates the economic impact of popular athletes by analyzing the presence of LeBron James in Los Angeles from when he joined the Lakers in 2018 to the present day. This research examines LeBron’s impact on various economic factors such as the Los Angeles GDP, Lakers revenue, Los Angeles unemployment, and the Laker’s franchise valuation. Using a difference-in-difference regression model, results show that LeBron’s presence had a statistically significant impact on Los Angeles GDP, increasing it by approximately $103 billion on average. LeBron’s effect on the Laker’s revenue and franchise valuation was positive but not statistically significant. His impact on Los Angeles was negative, meaning the unemployment rate decreased with the presence of LeBron, but this finding was not statistically significant. This research examined the broader influence of sports superstars on local economies, contributing to growing discourse on sports, business, and development.