Nike has always been Jordan’s biggest supporter, both financially and marketing-wise. The sportswear giant has paid him an estimated $1.3 billion according to Forbes since they first signed Jordan in 1984, and it has helped him become an icon of sneaker culture. This is the richest athlete endorsement deal ever but also arguably the biggest windfall Jordan has helped transform Nike from an underdog into one of the biggest, most valuable consumer brands most in the world. Let’s explore with Censor.vn that Michael Jordan has earned more than 1 billion dollars through collaboration with Nike.

Nike is popular today, but that was hardly the case in the mid-1980s when Adidas’ sales were 50% larger than Nike’s, Reebok was just booming and would surpass Nike in sales by 1987, and Converse is the brand of choice for NBA stars Magic Johnson, Larry Bird and Julius Erving.

Jordan wore Converse sneakers at the University of North Carolina, and his first choice was to join Adidas after the Bulls drafted him. Jordan’s agent, David Falk, who coined the phrase Air Jordan, had other ideas. He had a close relationship with Nike and encouraged Jordan to listen to the company’s pitch. Ultimately, Nike offered a five-year contract with a base salary of $500,000 per year, three times more than any other NBA sneaker deal.

MJ’s first shoe with Nike was banned by the NBA because it did not meet the league’s color standards. Nike paid the fine and seized the moment with an iconic 1984 commercial. “On October 15, Nike created a revolutionary new basketball shoe,” a voice said. up when Jordan throws the ball into the basket. “On October 18, the NBA threw them out of the game. Luckily, the NBA can’t stop you from wearing them.”

Nike has a shot in the arm. The first Air Jordan sneakers appeared in stores the following year and generated more than $100 million in sales in the first 12 months. MJ ‘s salary increased as the Jordan brand grew stronger. He earned about $130 million from Nike last year, four times more than LeBron James, who has the largest shoe deal among active NBA players.

Nike actively signed NBA players throughout the 1990s and 2000s, and stars such as Kobe Bryant and James helped build its business in the United States and China. Nike has recruited a slew of up-and-coming NBA talent, including Zion Williamson and Luka Doncic, to promote the Jordan brand. Nike currently has a monopoly in the basketball shoe business. According to market research firm NPD, Nike’s share of the basketball market including the Jordan brand was 86% last year. Seventy-seven percent of NBA players wore Nike or Jordan shoes during the 2019-20 season, according to shoe database website Ballet Shoes DB.

While Nike helped make Jordan a billionaire – his current net worth is $2.1 billion – he paved the way for Nike to leave Adidas and other competitors in the dust. Nike’s $40 billion in revenue over the past 12 months is 60% higher than Adidas’ and 43 times higher than before the addition of Jordan. Reebok, acquired by Adidas in 2005, posted lower revenue last year than in 1990. Nike’s $136 billion market capitalization is three times the size of Adidas.

The Jordan brand had revenue of $3.1 billion in the fiscal year ending May 2019—just 8% of the company’s revenue—but likely represents a larger portion of its market value because of its rapid growth. The 10% growth rate is faster than the company’s overall growth rate. The brand is easily worth $10 billion in addition to the billions of dollars in profits it has generated over 35 years and its halo effect on sales of other Nike-branded products.

MJ’s brand shows no signs of slowing down. “The most exciting thing is that we are still in the early stages of diversifying the Jordan portfolio,” former CEO Mark Parker said when announcing Nike’s second-quarter financial results in December. , including a $1 billion first quarter for Jordan Brand. “And we continued the momentum in Q3 with the milestone holiday launch of the Jordan 11 ‘Bred’, meeting demand for one of shoe culture’s all-time favorites sport on an astonishing scale.”

It was an article introducing the fact that Michael Jordan earned over 1 billion dollars through his collaboration with Nike. Please continue to follow Censor.vn to update the latest information about sneakers.