Mothers know best, and in the case of Michael Jordan and his mom, Deloris, nothing could be more accurate. As a matter of fact, His Airness wouldn’t be the billionaire he is today if not for Mrs. Jordan’s shrewd business sense.
According to The Mirror, Deloris Jordan was the one who insisted on a contract change with Nike. The Swoosh company was in the middle of a heated signing battle with Adidas and Converse for MJ’s services. Nike eventually won by offering $2.5 million through five years, the type of money Jordan couldn’t refuse.
That said, the icing on the cake was his mom’s insistence that his son take 5% of the shoe sales annually in perpetuity.
“Deloris Jordan, Michael’s mother, urged that Nike give her son 5 percent royalties for all shoes sold with his likeness if they wanted him to be the face of their basketball division. Nike agreed to the terms and the rest is history.”
The Mirror
The Jordan brand reportedly made over $5 billion in 2022. Five percent of that is over $250 million, and that’s exactly the paycheck Jordan received from Nike last year. Reports indicate the Jordan brand will make over $6.5 billion in 2023. That puts MJ’s cut at over $300 million.
Nike’s gamble on the skinny kid from North Carolina paid off. On top of that, MJ is making money in his sleep, thanks to a mother looking out for her son. Plus, that royalty deal would have made “Mr. Wonderful” Kevin O’Leary so proud.
Adidas’ Biggest Mistake
Adidas was the frontrunner in signing Jordan but ultimately decided not to match Nike’s offer. Businesses always make blunders, but this might be the one that stings the most. The Jordan brand is an institution and makes a fortune out of releasing retroes, not including the signature shoe lines from such players as Luka Doncic, Jayson Tatum, and Zion Williamson.
The “Three Stripes” is still making billions, primarily from their lifestyle shoes. With that being said, they could have Michael Jordan in their hands as MJ preferred them over the other companies. Adidas just fumbled the ball on the one-yard line. That might be the signing that crowns the company as the undisputed king in the shoe market.