With the end of the Last Dance documentary, the world has been reminded yet again of the excellence of Michael Jordan. Beyond his status as the greatest basketball player of all time, Jordan has also cemented his name in modern culture with his iconic brand, ‘Air Jordan.’ With lucrative deals since 1985, Jordan has gone beyond basketball and changed the game forever, as he becomes the world’s first athlete billionaire.
Who Said Man Was Not Meant to Fly
The original deal made with Nike put Jordan at earning roughly $500,000 per year, with the contract spanning for five years. As expressed in the contract, the last two years would only be guaranteed if $4 million USD of sneakers were sold by the third year. With most assuming that the shoe would do only moderately well, no one expected to reach $100 million USD in sales within the first 10 months. The hype for Jordan was real.
From the NBA ban commercial surrounding the original Air Jordan 1s to the ‘Man Was Not Meant to Fly’ advert released not long after, Nike seized every opportunity it had brilliantly. The string of promotional campaigns that were released during this time positioned Michael Jordan as someone far greater than any average player, it defined him as ‘Air Jordan’ or ‘His Royal Airness.’ Solidifying his identity with Nike, this was just the beginning of an extremely rewarding business relationship between one man and one brand.
The Billion-Dollar Business Man
From investments into real estate and the Charlotte Hornets in 2010, Jordan has made a name for himself as a highly successful businessman. From May 2020, Michael Jordan himself is estimated to be worth $2.1 billion USD. While he is known to have earned an extreme amount of money during his time on court (total playing salary totaled $90 million), it is stated that he also earned a whopping $1.7 billion (pre-tax) through various corporate partners.
The Jordan brand has become synonymous with sneakers. Through the decades, the brand itself has remained strong, with no other modern athlete coming close to how much Jordan has earned in sneaker income alone.
LeBron James, for example, is said to be taking $32 million USD from his shoe deal, and yet Jordan is estimated to have an annual take of $130 million – four times more despite being retired.
In the fiscal year of 2019, Nike’s Jordan brand reported making its first billion-dollar quarter, with the second-quarter profit rising 32%. As Mark Parker, Nike’s chief executive stated, “the marketplace is healthy and in many cases, demand is exceeding supply.”
Changing the Game
Jordan’s deal with Nike and the success the two partners have had since signing in 1985 has changed the way merchandising and marketing athletes works. What was often considered an avenue for only actor celebrities has now opened lucrative opportunities for athletes and designers to make bank on. In fact, modern success stories like Kanye West with Yeezy are believed to be possible due to what Air Jordan achieved.
The aforementioned NBA ban was a clear example of built-up hype resulting in mass success. The forbidden aspect of the shoe left crowds of consumers eager to get their hands on it, and by the time of its release, Air Jordans were everywhere.
Through the years, there have been countless iterations of the Air Jordan 1 (like the release above). The wave of Jordan sneaker collectors has only grown since the 80s and many believe those were the formative years of the now sneakerhead culture.
While previous shoe deals with athletes existed long before MJ, none have come close to the numbers and successes Air Jordan has done. Not only has the brand propelled Jordan himself into the billion-dollar club, but it has also pushed Nike as the number one brand in sneaker culture, cementing Air Jordan as a global icon.
“I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. Twenty-six times I’ve been trusted to take the game-winning shot…and missed. I’ve failed over, and over and over again in my life. And that is why I succeed.”
Michael Jordan
