How Michael Jordan Will Make More Money Than Any Athlete This Year - Forbes
Jordan has a lot to smile about these days. (Photo by Streeter Lecka/Getty Images)
Michael Jordan sued the now-defunct grocery chain Dominick’s six years ago for unauthorized use of his name in a steak-coupon advertisement issued to commemorate Jordan’s 2009 Hall of Fame induction. The civil trial finally went to court last August and the result was stunning. The jury found Safeway, which bought Dominick’s in 1998, liable for $8.9 million. It was a mammoth penalty for a promotion where just two customers cashed in the $2 coupons. The message was clear: the Jordan name is unmatched.
Jordan, 53, donated the proceeds from the jury award to 23 Chicago charities in December. He can afford it. The five-time NBA MVP made an estimated $110 million last year, excluding the Dominick’s verdict, to lead Forbes’ annual look at the highest-paid retired athletes. Jordan will likely make at least $30 million more than any other athlete in the world, active or retired, in 2016.
The power of Jordan is still growing 13 years after he last laced up his high tops. He now ranks first in Repucom’s CelebrityDBI, which tracks awareness and consumer sentiments across seven attributes for nearly 4,000 celebrities in the U.S. (he ranked No. 4 last year). Translation: Jordan right now is the most marketable person in the U.S. ahead ofOprah Winfrey, Tom Hanks, Bill Gates and every other celebrity you can name. He posts top 10 scores for aspiration, endorsement and influence. His awareness level is almost unmatched at 98%.
“Michael Jordan is defined by what he did in basketball and his NBA performance is the benchmark to which other great players are measured,” says Repucom executive Peter Laatz. “He has stayed relevant and in the news more than a decade after retirement through other things like the Jordan brand, his ownership of the Charlotte Hornets and the viral ‘Crying Jordan’ meme.”
The Jordan brand remains a cash cow for its owner Nike and its namesake MJ. The overall U.S. basketball shoe market was up 3.7% in 2015, while the Jordan brand’s growth was almost four times that at 14% according to research firm SportsOneSource. The Jordan business is split almost evenly between the retro product and new releases. Total Jordan U.S. retail shoe sales hit $3 billion last year with a market share of 64% in basketball compared to 29% for Nike-proper, 3.6% forUnder Armour and 2.3% for Adidas per SportsOneSource. His Nike deal was worth $100 million for MJ last year, by our count, or more than the $94 million in total playing salary he made during 15 NBA seasons.
“The Jordan brand is always pushing the envelope,” says SportsOneSource analyst Andy Annunziata. “Jordan is the pinnacle product for the consumer who wants the best athletic footwear.”
Nike has big plans for Jordan with the goal of doubling the brand’s annual revenue to $4.5 billion by 2020 in the company’s push to $50 billion in overall sales ($4.5 billion marks wholesale revenue and includes apparel and international markets). Nike will target women and categories beyond basketball like running in its push to double the brand’s size.
Nike has already started the process with the Jordan Eclipse lifestyle running shoe, which has sold well according to NPD Group analyst Matt Powell. “The landscape is completely open to them,” says Powell. “If they can keep product innovation going, they can succeed in other categories.” A bigger business means more royalties for MJ, whose Nike check could reach $200 million in 2020.
Michael Jordan still maintains other endorsement relationships beyond just his lucrative Nike pact. Partners includeGatorade, 2K Sports and Five Star Fragrances. He signed a long-term extension with memorabilia firm Upper Deck last year. The relationship dates back to 1992. Jordan also owns seven restaurants and a car dealership, which add to his annual haul.
Jordan reached billionaire status in 2014 thanks to years of Nike checks and his ownership stake in the Hornets, which he acquired majority control of in 2010. It was a shrewd move. “Jordan used his name more than his money to acquire his hometown basketball team and has now been part of the greatest rise in franchise values in NBA history,” says Marc Ganis, president of Chicago-based sports consultancy Sportscorp.
We value the Hornets at $750 million with Jordan’s stake worth $540 million net of debt. The team is on the rise with a strong young core of players and one of the NBA’s best coaches in Steve Clifford. The team is almost a lock for the playoffs in April for only the third time in the past dozen years.
Stephen Curry has revolutionized the NBA over the past two seasons and his Under Armour line of Curry signatures shoes has been selling like wildfire. But he has a ways to go to catch Jordan, which sold 18 times as many pairs of shoes in 2015.
Jordan’s popularity seemingly knows no bounds. With the “Crying Jordan” meme, he has reached a new, younger audience that doesn’t necessarily remember Jordan at his peak with the 1990s Chicago Bulls. Jordan’s longtime manager Estee Portnoy told the Chicago Tribune that MJ was aware of the Internet sensation and that they were monitoring the situation to see if anyone used the meme “to promote their commercial interest.” It’s a word of caution to an entrepreneurial type looking to make a buck off the meme. As Dominick’s can tell you, when you mess with the bull you get the horns.
Jordan has a lot to smile about these days. (Photo by Streeter Lecka/Getty Images)
Michael Jordan sued the now-defunct grocery chain Dominick’s six years ago for unauthorized use of his name in a steak-coupon advertisement issued to commemorate Jordan’s 2009 Hall of Fame induction. The civil trial finally went to court last August and the result was stunning. The jury found Safeway, which bought Dominick’s in 1998, liable for $8.9 million. It was a mammoth penalty for a promotion where just two customers cashed in the $2 coupons. The message was clear: the Jordan name is unmatched.
Jordan, 53, donated the proceeds from the jury award to 23 Chicago charities in December. He can afford it. The five-time NBA MVP made an estimated $110 million last year, excluding the Dominick’s verdict, to lead Forbes’ annual look at the highest-paid retired athletes. Jordan will likely make at least $30 million more than any other athlete in the world, active or retired, in 2016.
The power of Jordan is still growing 13 years after he last laced up his high tops. He now ranks first in Repucom’s CelebrityDBI, which tracks awareness and consumer sentiments across seven attributes for nearly 4,000 celebrities in the U.S. (he ranked No. 4 last year). Translation: Jordan right now is the most marketable person in the U.S. ahead ofOprah Winfrey, Tom Hanks, Bill Gates and every other celebrity you can name. He posts top 10 scores for aspiration, endorsement and influence. His awareness level is almost unmatched at 98%.
“Michael Jordan is defined by what he did in basketball and his NBA performance is the benchmark to which other great players are measured,” says Repucom executive Peter Laatz. “He has stayed relevant and in the news more than a decade after retirement through other things like the Jordan brand, his ownership of the Charlotte Hornets and the viral ‘Crying Jordan’ meme.”
The Jordan brand remains a cash cow for its owner Nike and its namesake MJ. The overall U.S. basketball shoe market was up 3.7% in 2015, while the Jordan brand’s growth was almost four times that at 14% according to research firm SportsOneSource. The Jordan business is split almost evenly between the retro product and new releases. Total Jordan U.S. retail shoe sales hit $3 billion last year with a market share of 64% in basketball compared to 29% for Nike-proper, 3.6% forUnder Armour and 2.3% for Adidas per SportsOneSource. His Nike deal was worth $100 million for MJ last year, by our count, or more than the $94 million in total playing salary he made during 15 NBA seasons.
“The Jordan brand is always pushing the envelope,” says SportsOneSource analyst Andy Annunziata. “Jordan is the pinnacle product for the consumer who wants the best athletic footwear.”
Nike has big plans for Jordan with the goal of doubling the brand’s annual revenue to $4.5 billion by 2020 in the company’s push to $50 billion in overall sales ($4.5 billion marks wholesale revenue and includes apparel and international markets). Nike will target women and categories beyond basketball like running in its push to double the brand’s size.
Nike has already started the process with the Jordan Eclipse lifestyle running shoe, which has sold well according to NPD Group analyst Matt Powell. “The landscape is completely open to them,” says Powell. “If they can keep product innovation going, they can succeed in other categories.” A bigger business means more royalties for MJ, whose Nike check could reach $200 million in 2020.
Michael Jordan still maintains other endorsement relationships beyond just his lucrative Nike pact. Partners includeGatorade, 2K Sports and Five Star Fragrances. He signed a long-term extension with memorabilia firm Upper Deck last year. The relationship dates back to 1992. Jordan also owns seven restaurants and a car dealership, which add to his annual haul.
Jordan reached billionaire status in 2014 thanks to years of Nike checks and his ownership stake in the Hornets, which he acquired majority control of in 2010. It was a shrewd move. “Jordan used his name more than his money to acquire his hometown basketball team and has now been part of the greatest rise in franchise values in NBA history,” says Marc Ganis, president of Chicago-based sports consultancy Sportscorp.
We value the Hornets at $750 million with Jordan’s stake worth $540 million net of debt. The team is on the rise with a strong young core of players and one of the NBA’s best coaches in Steve Clifford. The team is almost a lock for the playoffs in April for only the third time in the past dozen years.
Stephen Curry has revolutionized the NBA over the past two seasons and his Under Armour line of Curry signatures shoes has been selling like wildfire. But he has a ways to go to catch Jordan, which sold 18 times as many pairs of shoes in 2015.
Jordan’s popularity seemingly knows no bounds. With the “Crying Jordan” meme, he has reached a new, younger audience that doesn’t necessarily remember Jordan at his peak with the 1990s Chicago Bulls. Jordan’s longtime manager Estee Portnoy told the Chicago Tribune that MJ was aware of the Internet sensation and that they were monitoring the situation to see if anyone used the meme “to promote their commercial interest.” It’s a word of caution to an entrepreneurial type looking to make a buck off the meme. As Dominick’s can tell you, when you mess with the bull you get the horns.
