Michael Jordan: Professional Basketball’s Billion Dollar Man

One of the few athletes whose name is synonymous with marketing.

Michael Jordan grew up playing football, baseball and basketball as a child, yet he never donned a pair of Nike shoes in his life. That was, until he was offered a deal with Nike. Jordan preferred shoes by Adidas, but Nike’s deal proved too lucrative. The sports apparel and equipment giant may not have known they made a contract with history. Known to U.S gambling news, Nike and Jordan are still reaping millions to this day.

• Nike paid Jordan USD 500,000 a year plus USD 4.5 million in stock over 5 years
• In the first year USD 100 million was made in Jordan shoe revenue for Nike
• Jordan owns a 90 percent stake in the NBA franchise the Charlotte Bobcats

The flamboyancy of Jordan’s play and the mass appeal he’s career throughout his career has created a USD 1 billion net worth. It is said that Jordan still makes USD 100 million a year. This money was created through a combination of skilled play, endorsements as well as smart business decision. Unlike any other athlete in history, the constant flow of Jordan’s finances has forgiving him more than once when involved in foolish activities.

Jordan’s big coming out was sponsored by Nike and others

Jordan was a supernova in a making even from high school where he was considered a good prospect that quickly gained more momentum by the time he would graduate. Purposefully concealed during high school, Universities had wanted only North Carolina Colleges to enroll Jordan. At the University of North Carolina, Jordan was quickly made a position player under Coach Dean Smith’s program that favored team play.

Making the game winning shot at the NCAA final game in 1982 was a turning point in Jordan’s career. In the NBA, an unleashed Jordan ran amok delivering some of the most entertaining basketball that had been seen in years. Whether it was away games or at home, every sports writer, enthusiast and fan was focused on Jordan. Unfortunately this created problems with several other veteran players in the league who were publically upset by the overwhelming amount of attention Jordan was getting.

Although Jordan would only earn USD 500,000, which rose up USD 100,000 yearly until 1988, the public was ripe for more. In 1984, Jordan signed his covenant simultaneously breathing life into the shoe giant, the league and himself as a brand. Upon the debut of the “Air Jordan”, the NBA slapped Jordan with several fines for violating league uniform restrictions.

With added controversy and the shoes more publicity, Nike handily paid all of the fines, and won a gamble unprecedented in or out of U.S gambling laws. In the two months, over a million shoes were purchased and in the first year USD 100 million was made in revenue for Nike. The “Air Jordan” basketball shoe also revealed to Nike that people were willing to pay a higher premium for shoes.

Jordan’s worth was more than just the shoes

Nike paid Jordan USD 500,000 a year over five years. In this contract, he also received stock options in Nike which raised his contract by USD 4.5 million. Currently, “Air Jordans” make up almost 60 percent of all basketball shoes sold generating USD 2.5 billion yearly. Jordan broke his foot in the second season of his career, but his popularity didn’t stop.

Soon Gatorade, Wheaties, McDonalds, Coca-Cola and Cheverolet were at Jordan’s door wanting a piece of the action. In a year, Michael recovered and earned NBA MVP, All-Star MVP, All defensive team and slam dunk champion titles which only re-instilled his popularity. From 1996-1998, Jordan was the first player to earn a salary exceeding USD 30 million per year. In 1996, Warner Bros casted Jordan to play in the film “Space Jam.”

The partial animated/live film starred Jordan among a cast of popular cartoon characters and proved useful for appealing to Jordan’s younger fan base that would eventually grow up buying his products. During his six-time championship run, Jordan also had sponsorship deals with Ball Park Franks, Rayovac, Hanes and MCI. After his retirement, Jordan became the majority owner of the NBA Team the Charlotte Bobcats.

As of 2014, Jordan had almost a 90 percent stake in the Charlotte Hornets. The franchise, estimated to be worth USD 400 million, was originally purchased for USD 175 million. Jordan divorced from his wife Juanita and had to pay a USD 168 million settlement making it one of the most expensive divorces settlements in history. Jordan’s foray into most forms of gambling except online sportsbooks in the U.S., is well known, but hasn’t hurt his net worth.

Jordan’s other partners include Upper Deck card company, game maker 2K Sports, Presbyterian Healthcare and Five Star Fragrances. Jordan is the owner of estates in places such as Miami and Charlotte, architecture estates, a car dealership, a motorsports team, six restaurants and a USD 50 million Gulfstream IV jet he uses to travel to his other homes throughout the world.