Acquired · Jul 24Nike
Jordan got a $2.5M guarantee plus a 5% royalty on gross sales. The line sold $126M in year one against a $3M three-year goal, and the Jordan brand now does $6.6B in revenue, growing about 35% a year.
Tips
- Nike gave Michael Jordan a royalty and a signature shoe because rivals could not copy it▶ 2:17:59Air Jordan sold $126 million in year one against an internal goal of $3 million over three years, so Jordan's first-year royalty roughly equalled his whole seven-year Bulls contract.
- Nike stuffed the channel in Jordan's first year and then launched an expensive flop▶ 2:31:00The Air Jordan 1 sold for $65, and only $150 million of Jordan product sold across the first three years.
- Tinker Hatfield kept Jordan by asking what he disliked and hiding the swoosh▶ 2:38:40The guarantee rose from $2.5 million to at least $18 million, and the Jordan brand did $6.6 billion in FY22.
