How Michael Jordan Still Earns $80 Million A Year

An interesting piece about the greatest basketball player who ever lived (Oscar Robertson might have something to say about that, though–Centers like Walt Chamberlain or Bill Russell too). 

via Kurt Badenhausen at Forbes.com 

Michael Jordan turns 50 on Sunday and retrospectives of his career have been getting heavy airtime this week. The highlights include his six titles with the Chicago Bulls, his impact on athlete marketing and countless unforgettable moments on the court (“flu” game; switching hands driving the lane; the“shot” versus the Cavs). Los Angeles Lakers forward Antawn Jamison opined last week that Jordan could still average double-digit points in the NBA. I think it is safe to say we’ve seen the last of MJ soaring above the rim after hitting the half-century mark with three retirements already under his belt. But Jordan the business? It is stronger than ever.

Jordan earned an estimated $80 million last year from corporate partners Nike, Gatorade, Hanes, Upper Deck, 2K Sports, Presbyterian Healthcare and Five Star Fragrances. Other Jordan assets include six restaurants, a North Carolina car dealership, a motorsports team and his 80% stake in the Charlotte Bobcats. Jordan out-earns almost every member of the world’s highest-paid athletes 10 years after his last NBA game (Floyd Mayweather topped Forbes June 2012 list with earnings of $85 million).

The Jordan Brand, a division of Nike, is responsible for the vast majority of MJ’s earnings. Jordan partnered with Nike after being drafted by the Bulls out of North Carolina in 1984. The original five-year deal was worth $500,000 annually, plus royalties. The terms of Jordan’s current deal with Nike are a closely guarded secret, but royalties now generate more than $60 million annually for MJ, according to sources.

Nearly 30 years later, the brand is still a marketing juggernaut. It controlled 58% of the U.S. basketball shoe market in 2012, according to research firm SportsOneSource. The Jordan Brand’s parent, Nike, was second with a 34% share, while Adidas (5.5%), Reebok (1.6%) and Under Armour (0.6%) divvied up the leftovers.

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