Does Michael Jordan Own Jordan Brand?
Michael Jordan does not own Jordan Brand. Nike owns Jordan brand but Michael Jordan gets a percentage of the revenue. Michael Jordan signed his deal with Nike in 1984 and while the Jordan brand started as part of Nike as a subsidary, the brand has it’s own identity. The Jordan Brand became so huge, that in 1997, Nike started marketing it as it’s own stand alone brand.
Nike is responsible for designing, producing and selling the products from the Jordan Brand. However, the Jordan Brand has it’s own designers, marketing, and corporate structure, and roster of sponsored athletes with Michael Jordan himself actively involved on the advisory board.
The very first successful item from the Jordan Brand was the Air Jordans sneakers released in 1984. It was produced by Nike and worn exclusively for Michael Jordan in early 1984, and released to the public in late 1984.
Jordan shoes have now become so popular that they’re worn by a wide range of people. Click HERE to see the best Jordans.
Michael Jordan’s deal with Nike was huge and helped him become a billionaire. This isn’t the first time Michael Jordan has had a major impact on sports and culture.
How Much Did Nike Pay Michael Jordan?
Michael Jordan’s initial contract with Nike signed in 1984 was worth $500,000 annually over five years. He also got a percentage of the revenue from the deal.
A shoe deal is usually the most lucrative endorsement deal for an NBA player, typically making up more than half of their income off the court. Michael Jordan getting a percentage of the revenue from the deal was the deciding factor that made him choose Nike over Adidas.
How Much Does Michael Jordan Make From Jordan Brand?
Michael Jordan gets close to 10% of the revenue from his Jordan’s brand. In 2019, he took in an estimated 130 million (Source: Forbes).
Part of the reason why Michael Jordan makes so much is because of the luxury like feeling of the brand as well as the price of the sneakers.
Matt Powell says this:
“I do think Jordan is accretive,” says Matt Powell, the sports industry analyst for research firm NPD Group. “Jordan in some ways is Nike’s ‘luxury’ brand.” According to NPD’s data, the average price of a Jordan sneaker is $139, versus $76 for the average Nike men’s shoe. Its apparel tends toward the premium end too.
Source: QZ
Michael Jordan has the richest shoe deal in NBA history.
“MJ’s annual take is an estimated $130 million, four times more than that of Lebron James, the No. 2 earner, with $32 million. Arguably, 16 years after he last laced up his own high tops on the court, more Jordan-branded shoes and apparel are being sold than the signature lines of every other current NBA player. Combined.”
Source: Forbes
How Much is Michael Jordan Worth?
Jordan is worth $2.1 billion as of May 2020, according to Forbes, making him the richest former professional athlete in the world. He joined the billionaire club in 2014 after increasing his ownership stake in the Charlotte Hornets.
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