How Nike-Jordan partnership redefined athlete endorsements
Michael Jordan and Nike have a partnership widely considered the most successful athlete-endorsement deal in history. Since the release of the Air Jordan sneakers in 1985 to Jordan's current role as the owner of the Charlotte Hornets, Jordan Brand has become a staple in the world of sports and fashion.
Not only did the Nike-Jordan partnership redefine shoe deals in the NBA, it took athlete sponsorship in the sporting world to a new level. Today, the deal generates billions for Nike annually, with Jordan also earning hundreds of millions from it. Almost four decades later, it remains the most valuable athlete endorsement deal ever done.
In 1984 Michael Jordan signed with Nike on a 5 year 500k per year deal, launching Air Jordan. Nike set an ambitious sales goal of $3 Million over the first 3 years.
Jordan sold $126 Million worth in the first year alone. https://t.co/Ui3mz6lG0U
The early days
The tale of Jordan and Nike's partnership began in 1984 when Jordan was a rookie with the Chicago Bulls. At the time, Nike was a company looking to break into the basketball market and Jordan was seen as the perfect athlete to help them achieve their goal.
The first Air Jordan sneakers, designed by Tinker Hatfield, were an immediate hit with both basketball players and sneaker enthusiasts. The sneakers, which featured a sleek design and the "Air Jordan" logo, quickly became one of the most popular shoes throughout the world.
The Jordan Brand just crossed $5 billion in annual revenue for the first time.
That means Michael Jordan made $150M+ from Nike last year alone—or nearly 2x his career NBA earnings.
The part you didn't know?
Without this man, it would've never happened.
Here's the story 👇 https://t.co/JBKzu1NqLJ
Over the years, Jordan and Nike have continued to release new versions of the Air Jordan sneakers. Despite the early setbacks, Jordan and Nike continued to push the boundaries of what was possible in the world of sports marketing. This has presented them with one of the most valuable sports brands today.
The value of Jordan Brand
Jordan Brand has become a highly valuable and recognizable trademark in the sporting world, as well as the fashion industry. The fan-favorite Nike subsidiary brand has become synonymous with high-quality, uniquely-designed and performance-focused sneakers.
Aside from sneakers, Jordan Brand has grown to include a wide range of clothing, accessories and other products. Today, Jordan Brand is the most valuable subsidiary of Nike, recording millions in unit sales and generating billions of dollars in revenue annually.
1984:
Nike hoped for $3 million in Jordan sales over 4 years.
2022:
Nike generates $3 million in Jordan sales every 5 hours. https://t.co/8BcU5VqKzf
Jordan Brand as of 2022 now records an annual sale worth over a whopping $5 billion. The brand has become a major contributor to the growth and stability of Nike stocks. It’s amazing how Nike projected the deal will earn them $3 million in the first four years, but now earns them $3 million every five hours.
Even after decades of retirement, Michael Jordan is paid an estimated $130 million annually by Nike on the deal. That’s more than four times the earnings of LeBron James, who currently has the biggest shoe deal among active NBA players. Jordan has reportedly earned more than $1.3 billion through the course of the deal.
Significance of the deal
Michael Jordan and Nike's partnership has had a lasting impact on the world of sports and fashion. The Air Jordan sneakers, which are still being released today, have become a symbol of style, performance and innovation. Jordan Brand, which continues to grow and evolve, is a testament to the power of a successful athlete-endorsement deal.
Since 1984, Michael Jordan has been paid over $1.3 Billion by Nike — making their partnership the richest athlete endorsement in the history of sports.
The most interesting part?
It almost didn't happen.
Time for a thread 👇👇👇
Michael Jordan and Nike's partnership is a story of risk-taking, creativity and determination. Over the years, Jordan and Nike have proven that with the right combination of athletes and brands, anything is possible. Jordan Brand is now one of the most recognizable and valuable in the world.
Today, Jordan Brand continues to be a major player in the athletic industry and a household name for sneaker enthusiasts and basketball fans around the world. With its commitment to high-quality products, innovative marketin, and a deep connection to the sport of basketball, Jordan Brand is sure to continue to be a force in the industry for years to come.