David Sweet • E-mail

The city of Cleveland celebrated Saturday as if it had won a sports championship, a rare feeling when residents’ hopes rest upon teams such as the Cavaliers, Browns, and Indians.

Cavaliers forward LeBron James announced he will play in Cleveland at least until the 2012 presidential election is in full swing, agreeing to an $80 million contract extension. The Akron native will be a hero along Lake Erie through the lion’s share of his 20s. Friends and family will cheer him on, possibly to the franchise’s first championship, and James will be a bigger celebrity in Cleveland than anyone immortalized in the Rock and Roll Hall of Fame.

But in spite of the Midas-like riches he’ll reap, James is giving up millions of dollars too. The youngster is probably the most marketable athlete in the country, aside from Tiger Woods — charismatic and personable, a basketball whiz who appeals to all parts of the population. But can he become a global brand based in Cleveland?

Name one athlete in Cleveland’s more than century-old professional sports history who has captured the country’s attention off the court or field. Yet put even a stellar college athlete in a big city such as Los Angeles — say, a Matt Leinart or a Reggie Bush — and the publicity machine spins out of control.

Take a look at the Forbes’ Celebrity 100 List, which is “a combination of earnings and sizzle,” according to the magazine. Of the sports names on there, the ones ahead of James — Kobe Bryant, Michael Jordan and Shaquille ONeal — are (or were) based in major markets. Same with those just below him on the list: Alex Rodriguez, Tom Brady and Derek Jeter.

Had James become a restricted free agent after next season, he could have snagged potent endorsement deals in New York, L.A. or Chicago. Rumor has it Nike would have increased his $90 million pact if he started playing in one of those cities. Not only that, James’ jersey sales in a major market would have soared. He would have supplanted Miami’s Dwyane Wade as the league’s most popular jersey choice. The New York media, from the daily newspapers to late-night television shows he could have walked to from Madison Square Garden, would have hyped James beyond belief. But what can the Cleveland Plain Dealer do?

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Paul Swangard, managing director of the Warsaw Sports Marketing Center in Oregon, believes a move to a bigger city would have offered significant benefits for James.

“It would certainly have helped strengthen the deals he already had with national brands, and the larger local markets would have provided more lucrative deals than in a smaller market like Cleveland,” said Swangard, who also noted James still “has plenty of upside” remaining in Cleveland.

The NBA, coming off a superb 2006 playoff run, will suffer from James’ decision. Though ABC enjoyed a ratings bump from the year before when the Cavaliers battled the Pistons in a seven-game series, imagine if it were LeBron’s Knicks against Kobe’s Lakers in the Finals. Ratings would skyrocket, and the NBA would enjoy the benefits during its next TV negotiations.

But for the next six seasons at least, James will be a Cavalier. Ironically enough, LRMR Marketing — a company developed by the budding superstar — is hosting a sports-marketing summit this week. “Brand LeBron” is one of the topics on the agenda. A good question might be: What’s the best way to limit the earnings potential of this brand? Answer: Stay in Cleveland.