Ice Cube’s BIG3 basketball league just offered University of Iowa’s Caitlin Clark $5 million to play in the 2024 season. If Ms. Clark can do for the league what she did for Iowa, attendance and revenue would soar.
When TMZ broke the story of the offer Wednesday, the rapper and co-founder of the BIG3 league, Ice Cube, said on X, “With our offer, Caitlin Clark can make history and break down even more barriers for women athletes.”
Ms. Clark has undoubtedly made tremendous strides for female sports and will continue to do so wherever she goes next. But make no mistake—Ice Cube is a capitalist. His offer represents a bet that Ms. Clark would do for the BIG3 league what she did for Iowa athletics and for Iowa’s economy. A recent study by the Common Sense Institute (CSI), where I serve as director of policy and research, suggests his bet would likely pay off.
Over the last three years, attendance at Hawkeye women’s basketball games held in Iowa has nearly tripled. Based on data provided by Think Iowa City, about 15% of those attendees came from out of state. That jaw dropping increase in attendance generated an estimated $82.5 million in new consumer spending within in the state, according to the CSI study. It found that new spending grew the state’s economy by between $14.4 and $52.3 million.
The increase in GDP is enough to purchase between 1,418 and 5,176 acres of Iowa cropland or pay tuition for between 1,306 and 4,767 University of Iowa students for a year. It could buy every Iowan a ticket to the state fair with money left over for funnel cake.
This astounding economic impact grew out of what the Hawkeye Wire first dubbed the “Caitlin Clark effect” in early 2023. Earlier this year, the NCAA described the effect on its website: “Women’s basketball has seen a rocketlike rise in popularity in recent years, and Iowa senior Caitlin Clark — now the NCAA women’s all-time leading scorer — has provided a lot of the fuel.”
Just as the BIG3 league must complete for talent, viewers, and dollars with the much larger and better-known NBA, Iowa has to compete for businesses, capital investment, residents, and workers with larger states like Texas and Florida. The BIG3 might be a great league, but that does not matter if they cannot attract new fans. The same goes for Iowa. The Caitlin Clark superstar brand makes a difference here, too.
According to WalletHub, Iowa is one of the best states to raise a family, and the second best state to start a business, the Corridor Business Journal reported last year—and for good reason.
And at a time when housing affordability remains at historic lows across the country, Iowa remains one of the most affordable places for families to buy a house and settle down relative to what the typical household earns. Meanwhile, Iowa has one of the lowest unemployment rates and highest workforce participation rates in the nation, with job creation continuing to rise. With recent tax reform measures, Iowa will fall from one of the top 10 highest income tax states for individuals and families in 2018 to one of the 10 lowest by 2026, according to the Tax Foundation. In addition, with relatively high incomes and low levels of income inequality, Iowa ranks in the top third of states for economic competitiveness, according to CSI.
Nonetheless, the state’s population has flatlined. Thanks to Caitlin Clark, however, Americans looking for a new place to call home or start a business now know Iowa for more than just corn and caucuses. Ms. Clark has increased Iowa’s GDP and improved its brand—and that’s a net positive for all Iowans.
After Ice Cube made his $5 million dollar offer, Dave Portnoy countered on X, offering $10 million for her to play on Barstool Sports’ intramural team. It’s unclear whether Portnoy’s offer was earnest, and the media consensus predicts Ms. Clark will decline the BIG3 offer in favor of focusing on a WNBA career. Nonetheless, the state of Iowa would benefit by thinking like these sports entrepreneurs. The Clark effect is a case study in what superstars can do for Iowa’s economy today and in the future.
Ben Murrey is Iowa director of policy and research with the Common Sense Institute, a nonprofit research organization dedicated to the protection and promotion of Iowa’s economy.
