5 Things That Will Change the Way You View Jordan Sneakers
Since 1984 when Michael Jordan signed his first sneaker deal with Nike, Jordan sneakers have been a really big deal. You might have thought that once Jordan retired (for the second time) in 2003, that the Jordan brand would slowly fizzle out or at least shrink. After all, the man no longer plays ball. Well, everything turned out to be totally opposite and here we have five things which prove that:
- Jordan sneakers bring in billions every year. According to an interview with Matt Powell with CNBC in 2014, Jordan Brand Nike’s bring in $2.5 billion a year. That increased to $2.8 billion this past year. For Michael Jordan’s part, he earned $100 million in 2016 from the sale of the Jordan brand sneakers. According to Forbes, the Nike brand has more than a 50% share of the basketball sneaker market.
- MJ is the highest-paid sports figure: Most players in football, baseball, and basketball have only a handful of years to make their mark and their money. MJ signed with Nike in 1984 and played ball last in 2003 but his money-making ability doesn’t seem to have an end. Over a 15-year career with the Chicago Bulls and the Washington Wizards, Jordan earned $93 million playing ball. Forbes says that Jordan became a billionaire in 2015 (12 years after he stopped playing ball) and stayed in that category in 2016. He is worth $1.7 billion dollars. He makes his money these days from his celebrity status like his licensing agreement with Nike, endorsements for Gatorade, and his ownership of several restaurants. a car dealership, as well as the Charlotte Hornets.
- Nike’s pushing the Jordan brand. According to SportsOneSource researchers, the Nike basketball brand grew by 14% last year. The sportswear giant wants the Jordan Brand to bring in $4.5 billion just four years from now in 2020 which is part of their master plan to reach $50 billion in overall sales. That would mean a corresponding increase in the royalties for Michael Jordan from all the shoes and other sports clothing they sell under his brand. Who wants to bet against a $200 million cut for MJ by 2020?
- What’s counted in those earnings of sports stars? Forbes has been studying athletes earning power since 1990. Forbes estimates include fees from books and appearances, salaries, bonuses, prize money, endorsements, and licensing. The Forbes numbers do not include investment income on those eye-boggling dollars nor do they account for taxes or agent fees Jordan must pay. The figures also do not include any income/loss from the sale of businesses.
- So, what’s next for the Jordan brand? Nike wants to expand the brand and reach into markets it hasn’t reached until now. Nike has already introduced the Jordan Eclipse, a lifestyle running shoe. The shoe has done well according to the NPD Group, market analysts. Nike also intends to market more toward a female audience for its apparel target group. It will prove interesting to see how that works out for a brand that has so far been solely focused on males “who want to be like Mike”.
The mind-boggling fact is that this year Michael Jordan will earn more than any other athlete in the world — whether those athletes are actively playing sports or retired. Jordan sneakers are more than just a shoe or a good design or flattering footwear. They are the physical representation of a sports icon. When you buy them, you feel one step closer to your hero…and for that privilege people pay the big bucks.
To read more about Michael Jordan and his brand, read the article on Forbes.com entitled “How Michael Jordan Will Make More Money Than Any Athlete This Year” which served as an inspiration for this post.
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