The Economy of Caitlin Clark
Sports have far reaching economic impact beyond the stadium. Winning teams draw more crowds, sell more merchandise and create ripple effects in the local economy and global economy. Every once in a while a particular athlete brings with them an entire economy of their own.
Perhaps most notably is Michael Jordan. Nike expected to sell 100,000 Jordan’s the first year. They shipped 1.5 million the first 6 weeks and transformed Nike, Basketball and the world. Jordan brand now brings in $6 billion a year and about 60 million shoes are made a year.
Deion Sanders' arrival at the University of Colorado is another example of what one star can do and he is a coach! Merchandise sales are up 505%. Applications are up 51% among black and African-American students. Estimates are $10 million of direct economic effect for Boulder, CO for every home football game.
We have been seeing it again with WNBA star Caitlin Clark over the last several years since her college days at Iowa. These types of social and economic shifts don’t happen all the time, but when they do, they are huge.
For example, ticket sales for the Indiana Fever (Clark’s team) are up 265% from last year, and they have a 1193% increase in jersey sales
The 2024 women’s college basketball championship that featured Clark hit 18.9 million viewers - ESPN’s most watched college basketball game ever (men’s or women’s).
WNBA teams have been moving to bigger arenas than they normally play in for their games against the Fever.
It is truly fascinating to see how one person can make an enormous impact on the economy of so many. Caitlin Clark is doing it in ways similar to what Jordan did during his playing days. It is mostly about the product on the basketball court and Clark has been exciting to watch. I tune in when she is on the court because there is a chance that you will see something amazing. Also, like Jordan, she inked an endorsement deal with Nike to the tune of $28 million.
She set the record for scoring by a rookie and set the WNBA single season record for assists.
Here are a few articles to check out about Clark and the social and economic impact she is making.
As always, if you come across a financially related article you’d like to send my way please do!
Best place to send them is to me.
More next time!
Jonathan