Michael Jordan‘s shoe deal with Nike is one of the most influential and profitable athlete endorsements in the history of sports. Coming into the NBA as a lesser-known rookie in 1984, it’s truly remarkable how a young Michael Jordan was able to pull off such a groundbreaking transaction. The credit actually, must go to his mother Deloris Jordan.
In 1984, Jordan signed a groundbreaking deal with Nike that would change the landscape of athlete endorsements.
The initial contract was worth $500,000 a year, but Jordan’s popularity helped turn the Air Jordan line into a billion-dollar brand. pic.twitter.com/u8l8DRk9uY
— BetDEX (@BetDEXLabs) April 28, 2023
Convinced by his mother and close friend George Ravelling, Michael Jordan eventually signed a five-year contract worth $2.5 million. This was the start of a legacy of a shoe line so popular that it will most likely outlast Jordan’s lifetime and has in part made him a billionaire. The shoes are named “Air Jordan” after Jordan of course but the “Air” comes from Nike’s patented technology that is included in many of their shoes.
How much does Michael Jordan make per sale?
The Jordan brand earned about $5.2 billion in sales in 2022, and Jordan has reportedly received 5% of this huge figure, as per Front Office Sports.
In 1984, an athlete earning a percentage of the sales of his shoe was unheard of. In those times, the only money they earned was the contract’s stipulated amount. The clause was negotiated by Jordan’s mother and it changed athlete shoe deals forever. Now that is the standard for most athlete shoe deals, barring lifetime deals such as the one LeBron James has with Nike.
With the release of the hit Amazon Prime Video exclusive movie “Air,” the hype around Air Jordan shoes is at an all-time high. With the Air Jordan 1 being the most popular out of the lineup, it accounts for a major part of all Jordan brand sales, doing well over hundreds of millions annually.
Michael Jordan might arguably be the greatest basketball player in the history of the game, but there’s no argument that he has been the greatest when it comes to maximizing his off-court revenue. Owning his own steakhouse and tequila brand among other numerous investments in real estate, there is no doubt that his greatest move was signing with Nike in 1984.
Ironically Jordan was hell-bent on signing with Nike’s rival, that is the Germany-based sports apparel company Adidas, but thanks to wise counsel from his mother and although we may truly never know whether it was Sonny Vaccaro or George Ravelling that was instrumental in making him sign with Nike, ultimately Michael Jordan has become the most influential athlete to ever live.