Courtesy of Rick Armon of The Akron Beacon Journal

On the court, LeBron James is money.

And off, he means even more money for the Cavaliers.

Since James entered the NBA, the value of the Cavs' franchise jumped 85 percent to $477 million last year -- the largest percentage increase in the league, according to Forbes.com.

The team is ranked as the fifth-most valuable in the NBA, climbing over larger markets in the past several years, thanks in large part to James' on-court success.

But that team value -- which factors in the arena -- and ranking could take a serious hit next year.

As the NBA season kicks off this week, James is entering the final year of his contract with the Cavs, and there's plenty of media and fan speculation that he might bolt to a big-city market such as New York City when he becomes a free agent. The question of whether he stays or goes likely will hound James all season.

If he does leave, the psychological blow to Cleveland sports fans would be immense. But it also would be a huge financial blow to the team itself.

"The value of the team would diminish significantly," said Forbes National Editor Michael Ozanian, one of the authors of Forbes.com's annual "Business of Basketball" report. "I wouldn't want to put an exact dollar amount on it, but it could easily be 10 percent."

That's an eye-popping $47.7 million.

The franchise value would fall because majority owner Dan Gilbert -- who bought the team for $375 million in 2005 -- would have a hard time increasing sponsorship and TV deals without the homegrown superstar, experts said. Season-ticket sales also would falter.

"Ticket revenue is the bread and butter of the industry," said Jim Kahler ('81), executive director of the Center for Sports Administration at Ohio University and former senior vice president of sales and marketing for the Cavs from 1991 to 2002. "If you don't have people in the building, it's going to have an impact on your sponsorships."

Increased value
When James entered the league right out of St. Vincent-St. Mary High, the Cavs were 15th in Forbes.com's rankings.

The team's estimated value at the time was $258 million. It has grown $219 million since.

No other NBA team appreciated faster, according to the Forbes.com data. The Golden State Warriors are second at 78 percent ($188 million to $335 million).

The average league rate was 43 percent. If the Cavs grew at that rate, the team would be worth an estimated $367 million today.

"I think almost all of the above-normal gains in franchise value are attributable to LBJ," said John Vrooman, a Vanderbilt University economics professor and sports economist. "It is safe to say that the Cavs' value is now well over $500 million."

The only teams with higher value than the Cavs last year were the New York Knicks, Los Angeles Lakers, Chicago Bulls and Detroit Pistons.

The Forbes.com 2009 rankings are expected to be released in December.

James declined to comment for this story.

But Cavs teammate Zydrunas Ilgauskas, when asked about James' value chuckled and answered, "I don't know, you'd have to ask the owner."

Even if James decides to leave -- and Vrooman doesn't think he will because of the league's salary-cap restrictions and the collective bargaining agreement -- the team value won't be decimated, Vrooman said.

"In the event that the Cavs were to lose LBJ, they would drift back into the mid-market mediocrity of the pack at No. 15 because of the sweet arena deal they still have with Gateway," he said. "Mr. Q, [Gilbert] of course, knows this and will do whatever it takes to keep King James and his money machine."

James reportedly will make $15.7 million this season -- a relative bargain, given his financial worth to the team.

Austin Briggs, a Cleveland Heights resident, Kent State student and co-founder of the Web site http://www.pleasedontleave23.com, said it would be devastating to see James leave.

"I think Dan Gilbert and the ownership of the Cavs need to do whatever is within their power to keep LeBron," he said. "They also need to set an example for the management of the Browns and the Indians that they need to keep players. In the long run, winning games is what makes the most money."

Gilbert's response
Gilbert downplayed the Forbes.com valuation, saying real value is determined when a franchise is sold.

"I'm glad they think that," he said. "But we won't know that for a long time because we plan to be around for a long time and don't plan on selling the team."

Gilbert said he's confident that James will re-sign with the team. Gilbert has invested millions in upgrading Quicken Loans Arena and building a state-of-the-art practice facility in Independence as part of his goal to make the Cavs an attractive franchise.

"I believe for him, or anybody else, this is the best place to play basketball. Plus it's his hometown. And plus he did say when he was drafted . . . let's light up this town like it's Las Vegas and we're doing our part," he said, alluding to his casino effort on the statewide ballot next month.

"In the long term, if we're doing the right things, the Cleveland Cavaliers should be bigger than any player. Should be bigger than its owner. Should be bigger than its GM and coach," he added. "If it has a philosophy and a winning culture and strategy, then it should be valuable no matter who's around.

"Hopefully we won't ever have to worry about [James leaving]."

James' impact
Smaller-market teams such as the Cavs face a greater financial impact when a superstar leaves, experts said.

Conversely, the value of the Knicks wouldn't jump much if James went there because they already are the most valuable franchise in the league thanks to their home arena, Madison Square Garden.

"What LeBron to the Knicks does is raise the ceiling on all NBA deals -- broadcast, sponsorship, Internet -- because with the Knicks being terrible, the ceiling on all deals has been limited for all teams," said Robert Boland, clinical assistant professor of sports management at the New York University Tisch Center.

He added that James would boost the value of the New Jersey Nets, who are planning to relocate to a new arena in Brooklyn. One of the Nets' owners is hip-hop artist Jay-Z, a friend of James, and there is speculation about James ending up with that team.

"A star joining a team helps at the box office and can make a team more profitable but not as much as an improved facility and a better fan base," Boland said. "Although the star can help with both of those things, too."

Ozanian compared the Cavs' situation to NBA Hall of Famer Michael Jordan leaving the Chicago Bulls, which still had another superstar in Scottie Pippen upon Jordan's departure.

"The value didn't go down because Jordan had put the team on the map and won several championships," he said. "They had already established that team . . . He built it into a winner and it was still great [when he left]. That hasn't happened yet with the Cavs. They haven't won yet. They are on the precipice."