Impact of an NBA Championship

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The Dallas Mavericks won their first NBA Championship in franchise history last night. The whole franchise and the entire city of Dallas are elated at this great accomplishment. However, the impact to the people involved and the winning city is more than just the achievement and obtained goal. Winning an NBA Championship has an economic impact that makes this title even sweeter.

The obvious first economic benefit of winning the title is merchandise sales. Just about every Dallas Mavericks fan will buy the official “Championship T-shirt” and other championship items. Although the sales will be highest in the city of Dallas, it will also be around the world since the NBA is the most globally watched North American league. The players will have new endorsements and the free agent players may be able to ask for a bigger contract to stay in Dallas so that it won’t change the make up of the roster next year. Mavericks owner Mark Cuban will gain more recognition for this win and this can help him in his other businesses as well. As a franchise, the Mavericks may be able to lock in advertisers at higher sponsorship rates now that they will receive higher ratings next year as champions.

The city of Dallas will benefit from the increased revenue to the team by way of taxes and possible employee bonuses. Small businesses that sell the licensed Dallas Mavericks merchandise will see increased sales which have a trickle down effect to the entire economy. Winning a title as meaningful as the NBA Championship will also boost the morale of the city. This metric is hard to quantify but it can help businesses thinking about hiring a new worker to do it or a family thinking of moving to Dallas and buying a home to choose to make that move. Obviously, most people will not make such decisions based on an NBA title victory, but subconsciously a winning team can have that sort of impact.

Although I was not rooting for the Mavericks this year, they deserve the benefits that will now come with an NBA Championship. Hopefully the city makes the most of it.