It’s been an incredible year for Michael Jordan in business terms. According to journalist Joe Pompliano, the NBA legend will have personally pocketed more than $300 million in 2023 thanks to royalties obtained from the Jordan Brand, produced by Nike. The former Chicago Bulls shooting guard first linked up with the sportswear giant almost four decades ago, signing a deal that would see him pick up around 5% of Jordan Brand annual sales. In 2018, Nike gave the Jordan Brand more independence, a decision which has been vindicated by huge sales increases year upon year.
How do Jordan’s 2023 earnings compare to his NBA career?
In the last five years, the Jordan Brand has more than doubled its annual income. As highlighted by Pompliano, sales revenue has soared from $2.8 billion to $6.6 billion. That means Jordan himself will earn more than three times as much this year ($330 million) as in his entire NBA career ($94 million). According to various reports, the Jordan Brand accounts for 14.16% of Nike’s global turnover. The best business deal in NBA – and perhaps sports – history? Many believe so.
The Air Jordan line of basketball shoes has established itself as one of the most recognised worldwide, and especially popular in western countries. As stated by Nike, the Jordan Brand is on a “clear path” to becoming the second biggest footwear brand in North America, ahead of Adidas, Puma and New Balance. Only Nike itself is projected to sell more in future.
Nike’s 1984 gamble on rookie Jordan pays off
Jordan’s story is, of course, well known. The number three overall pick in the 1984 Draft wasted no time in making an impact in NBA, which had seen a huge growth in international popularity, partly due to the rivalry between Magic Johnson and Larry Bird. Nike weren’t initially convinced about the idea of signing a huge sponsorship deal ($500,000 for five years) with a rookie, but, in hindsight, there can be no doubt their gamble paid off.
The signing of Jordan did wonders for the sportswear company’s publicity and sales, with Nike having previously been associated mostly with athletics. Founder Phil Knight expected first-year sales of around $3 million; the final figure for 1984 stood at $126 million.
