Why Carmelo Anthony to New York is a big deal

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Depending on whether you’re a sports fan or not, you may or may not be familiar with NBA star Carmelo Anthony. You also may or may not be aware that just the other night he was traded to the New York Knicks, from Denver. This news has been the talk of not only the general news and sports news, but also business news. If Carmelo Anthony was traded to Memphis or Portland instead of The Big Apple, it likely would not have been discussed much in the business news media.

New York is the largest and most economically important sports market in the world. The combination of New York’s massive population, the amount money its people have and/or control and the influence some its residents have in global business make it so important. For a sport franchise, when it has a star on its roster, the value of that franchise increases. This is true for all major team sports, but for the NBA it is even more impactful. Carmelo Anthony is one of the best basketball players in the world and by him joining the New York Knicks, a lot more dollars will be flowing to that team’s pockets.

They will have more eyeballs watching their games on TV which will raise the value of ad space during their telecasts. Next year they will be able to charge whatever they want for seats and still sell out the arena for every game. New sponsors will be lining up to have Anthony’s image with a New York Knicks jersey representing them. Existing sponsors will be asked to pay more than they currently do and they will oblige. It doesn’t stop there as I didn’t even mention increases in Knicks merchandise sales. Carmelo Anthony stands to benefit financially from this trade as well. He will likely be seeing more companies looking to pay for his endorsement because more people will see him now that he plays for New York.

In fact, having a star like Carmelo Anthony play for a city like New York is much more a business story than it is a sports story. We will see how this business story unfolds over the next few months.