LA Lakers' Loss Costs Local Businesses Up to $70 Million in Revenue

On Sunday at Champs Sports Pub in Burbank, Calif., Los Angeles Lakers fans watched "a horrible loss," says Helen Handy, co-owner of the bar her husband, Joe, started 28 years ago. "The mood was that the Lakers gave up. [Fans] were pretty disgusted by the style of playing."

It was a horrible loss for more than just the fans. Lakers fans "are our bread and butter," Handy says. "We lost all of that fan base. We won't see those guys until next year. And we survive on that. It's what carries us through -- our buffer during the slow summer months."

On Wednesday night, about 35 people were at Champs Sports Pub, compared to the approximately 100 patrons who watched the final Lakers game. During previous playoff and championship NBA games, "it was standing room only," says Handy. "We'd have to stop people at the door."

The economic effect of the Lakers' early elimination is $60 million to $70 million in lost sales for local businesses around the Staples Center, estimates Esmael Adibi, economist and director of the A. Gary Anderson Center for Economic Research at Chapman University. "If [the Lakers] had gone all the way, that's maybe nine more games," says Adibi. "That's lost revenue to the merchants, restaurants and bars in that area. Depending on their financial condition, this could be a big pinch on their bottom line."

That pinch extends farther than just the neighborhood surrounding Staples Center. Handy estimates Champs Sports Bar will lose $20,000 in revenue this year. "We depended on that money even more so because of the [slow] economy," she says. "It's a real blow. But all good things come to an end. We were spoiled for the last few years. This is a wakeup call."