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Cavaliers' Komoroski on Economic Growth in Cleveland (Audio) · Bloomberg Intelligence

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  Speaker 1: that's a Bloomberg business flash. You're listening to Taking Stock
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  Speaker 1: with pin Box and Kathleen Mays on Bloomberg Radio, very
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  Speaker 1: special show today in Cleveland. Are going to be interviewing
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  Speaker 1: the President of the Federal Reserve Bank of Cleveland, Loretta Mester.
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  Speaker 1: Ahead of that, we want to take a look at Cleveland,
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  Speaker 1: the economy, where it's heading and what's driving and of
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  Speaker 1: course sports talk about the Cleveland Cavaliers and more are
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  Speaker 1: certainly the forefront of that. Now joining us is CEO
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  Speaker 1: of the Cleveland Cavaliers. The Quicken Loans Arena Lynn Kolmarowski.
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  Speaker 1: He's been with the Calves since two thousand three when
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  Speaker 1: he joined as president. He is the man largely responsible
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  Speaker 1: for bringing Lebron James to the Cavaliers. Lynn. Welcome to
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  Speaker 1: the show today, Kathleen. Thank you great to be here
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  Speaker 1: and uh and and thank you for coming to Cleveland. Well,
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  Speaker 1: you know, uh, it's just uh, I think it's moving
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  Speaker 1: and it's powerful when you see uh Lebron James of
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  Speaker 1: course coming back to Cleveland and and finally helping get
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  Speaker 1: this championship and now doing so much to try to
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  Speaker 1: help Cleveland's growth forward. Just for starters, tell us the
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  Speaker 1: story of you and Lebron James getting him to the Calves. Well,
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  Speaker 1: I think, first of all, just to uh to put
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  Speaker 1: that in proper perspective there, I mean, really credit is
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  Speaker 1: due with our owner Dan Gilbert and Dan and his
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  Speaker 1: partners Nate Forbes and Jeff Cohen, along with our general
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  Speaker 1: manager David Griffin, um uh and and basically setting the
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  Speaker 1: stage you know, were Lebron's ultimate return to Cleveland. Uh.
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  Speaker 1: And really again just creating an environment and atmosphere that
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  Speaker 1: made it attractive for Lebron to come back here. And
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  Speaker 1: obviously being from northeast Ohio that only just added greatly
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  Speaker 1: to that as well. But you know, as a as
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  Speaker 1: a first step, there are are general manager David Griffin
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  Speaker 1: had resigned Kyrie Irving, who is an amazing player in
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  Speaker 1: his own right, who is a free agent prior to
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  Speaker 1: Lebron making his decision to return. Uh. And then hence
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  Speaker 1: from there, we all saw the essay from Lebron about uh,
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  Speaker 1: this being bigger than basketball and and and uh and
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  Speaker 1: it certainly has proven out to be that to be
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  Speaker 1: the case. So how what has this meant so far?
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  Speaker 1: It's still early days, but how does this NBA Championship,
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  Speaker 1: the Calves beating the Golden State Warriors. Have you seen
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  Speaker 1: the impact on the local oakal econmy How are are
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  Speaker 1: you and your organization going to drive this forward to
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  Speaker 1: make this broader impact? Well? I think, first of all,
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  Speaker 1: with Dan, we have an owner who's just believed in
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  Speaker 1: these great Midwestern cities such as Detroit and Cleveland, and
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  Speaker 1: and certainly our organization and through Dan, Dan's invest over
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  Speaker 1: a billion and a half dollars in downtown Cleveland alone
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  Speaker 1: twelve different businesses here. So but not only between the
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  Speaker 1: Calves and the Queue, but also with the Jack Jack
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  Speaker 1: Cino Quick and Loans as a major presence here as
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  Speaker 1: well our ticketing company access S Vertics. So in many
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  Speaker 1: different ways manifested itself. But I think the best quick
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  Speaker 1: story I could tell you here is that, uh in
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  Speaker 1: two thousand twelve, I previously was the chairman of the
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  Speaker 1: board of our Convention of Visitors Bureau, and we had
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  Speaker 1: gone through a study about what clevelanders, you know, in
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  Speaker 1: terms of recommending Cleveland as a place to visit or
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  Speaker 1: to have a business conference, or travel leisure travel, and
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  Speaker 1: it showed that only thirty four of people in the
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  Speaker 1: Cleveland region would recommend their own city, which, to give
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  Speaker 1: you some context, that's typically in the sixties and and
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  Speaker 1: higher people who feel great about their city, and the
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  Speaker 1: percent I'll sho are like the lowest of the top
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  Speaker 1: fifty markets. After Lebron announced he was returning along with
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  Speaker 1: the week. That same week we also had won the
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  Speaker 1: honors for having the Republican National Convention here that spanned
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  Speaker 1: three days between each other. You know, it was a
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  Speaker 1: bit of a tipping point for our community in terms
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  Speaker 1: of an attitudinal change and how we felt about the city.
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  Speaker 1: Even though there's been a lot of straight strong in
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  Speaker 1: the seas in terms of economically things moving forward, and
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  Speaker 1: that we that survey again that it's the same type
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  Speaker 1: of survey came out and of clevelanders felt that they
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  Speaker 1: would recommend Cleveland as a place to visit a destination. Lastly,
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  Speaker 1: just in the last several weeks, that same UH survey
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  Speaker 1: was done and seventy five cent So think about that
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  Speaker 1: swing percent to seventy amongst the lowest, amongst the highest
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  Speaker 1: recommending Cleveland as a place to visit as a destination.
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  Speaker 1: And the number one UH element that was the attributed
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  Speaker 1: to this change and how people tell about our city
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  Speaker 1: was the Calves winning the championship. So it's been a journey.
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  Speaker 1: It's only four years. When you think about that, how
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  Speaker 1: diametrically opposed that swing has been. But it's been an
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  Speaker 1: amazing journey that I think in a lot of cases,
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  Speaker 1: if you were to spell it all out and bring
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  Speaker 1: it into a Hollywood producer, they would reject the script
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  Speaker 1: as being too unrealistic. Uh huh, Well, broadly, how much
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  Speaker 1: is sports contributing? We know that the Cleveland Browns are
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  Speaker 1: starting their season on a on an off note. Uh,
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  Speaker 1: but uh, seeing me to the Cleveland Browns. They're they're
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  Speaker 1: the football right, I mean they're having a struggle and
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  Speaker 1: they have for a while. But the Indians are in
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  Speaker 1: the playoff against the Red Sox. I got a home
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  Speaker 1: field advantage. Broadly speaking, how much are sports feeding into
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  Speaker 1: the Cleveland economy? Well, it's huge, uh And I can
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  Speaker 1: speak more specifically U in our world. And we actually
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  Speaker 1: had an economic impact study that was done by CFL,
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  Speaker 1: which is a bit of the gold standard in the industry.
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  Speaker 1: But to give you an idea, So for the Cavalier's
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  Speaker 1: playoff games, uh, it was estimated to be upwards of
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  Speaker 1: UH three point six million per per game and over
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  Speaker 1: five million per UH per finals game. But above and
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  Speaker 1: beyond that, we have two events here at the queue
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  Speaker 1: were the thirteenth most active building in the domestically per
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  Speaker 1: poll Star, who measure climate event activity, and thirty third
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  Speaker 1: most active building in the world. Glen Carroski please come back, hey,
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  Speaker 1: maybe during a the next basketball championship game. He see
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  Speaker 1: you know the Cleveland Cavaliers Quickamans Arena. I'm Kathleen Hayes
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  Speaker 1: and this is Bloomberg taking Stock broadcasting live today. And
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  Speaker 1: the Federal was a bank of Cleveland Our exclusive interview
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  Speaker 1: with Cleveland FED President Loretta Mester coming up