The NBA’s Richest Shoe Deals
michael Jordan hasn’t played in an NBA game in almost two decades, but the parlor game for fans and the media about who is the “greatest of all time” is thriving, fueled largely by LeBron James’ sustained brilliance. James passed Jordan in March on the career scoring list and has nine NBA Finals trips. Kobe Bryant ranks ahead of both players for scoring and had five NBA titles before retiring. Houston GM Daryl Morey argued this month that James Harden is a better scorer than Jordan.Get more news about Best basketball sneaker,you can vist nbaboss.us!
Wholesale revenue at Nike’s Jordan Brand subsidiary hit $3.14 billion in the fiscal year ending May 2019, up 10% from 2018. MJ’s annual take is an estimated $130 million, four times more than that of James, the No. 2 earner, with $32 million. Arguably, 16 years after he last laced up his own high tops on the court, more Jordan-branded shoes and apparel are being sold than the signature lines of every other current NBA player. Combined.
“Jordan is being extended as more of a lifestyle brand,” says Cowen & Co. analyst John Kernan. “There is enormous potential. It can be much bigger than a $3 billion brand.” Kernan cites Jordan strengths in its ability to create new colorways, relaunch products and manage the supply and demand equation to keep prices high. The brand has moved beyond just basketball through partnerships with French soccer club Paris Saint-Germain and college football blue blood Michigan.
The line got another marketing chip last month when Nike signed a deal with Zion Williamson, who was the top overall pick in the 2019 NBA Draft. After one year at Duke, Williamson enters the league as probably its most marketable rookie since James in 2003, and he will be suiting up in Jordans. His highlight-reel dunks fit perfectly into Nike’s marketing strategy and how NBA content is consumed on social media around the globe.
If Zion lives up to the hype, he is going to be a constant source of content creation for Nike,” says Kernan. “Athletes are very monetizable right now with social media, and Nike will participate in all of that content every time he does something memorable.”
Zion didn’t come cheap for Nike after his Nike PG 2.5 shoe split open on national TV in February and left egg on the face of the $39 billion-in-revenue sports giant. His multi-year deal is worth an estimated $13 million annually, including reachable incentives, and ranks fifth among current NBA players. A line of his own is all but certain in the near future.
It’s a lucrative career path. A shoe deal is almost always the richest endorsement deal for an NBA player, typically making up more than half of their off-court income. Michael Jordan’s massive haul in Nike royalties make up 90% of his current annual income and now totals $40 million more than the $90 million combined he made during his 15 years playing for the Chicago Bulls and Washington Wizards.
Basketball and soccer are the only true global team sports, which is why brands like Nike, Adidas and Under Armour are willing to pay such massive sums to the stars in each sport. The players can be used in marketing campaigns around the world.