“The Presidential Medal of Freedom is not just our nation’s highest civilian honor — it’s a tribute to the idea that all of us, no matter where we come from, have the opportunity to change this country for the better,” President Obama said in a White House news release Wednesday. “From scientists, philanthropists, and public servants to activists, athletes, and artists, these 21 individuals have helped push America forward, inspiring millions of people around the world along the way.”
By acclamation, Michael Jordan is the greatest basketball player of all time. Although, a summary of his basketball career and influence on the game inevitably fails to do it justice, as a phenomenal athlete with a unique combination of fundamental soundness, grace, speed, power, artistry, improvisational ability and an unquenchable competitive desire, Jordan single-handedly redefined the NBA superstar.
Even contemporaneous superstars recognized the unparalleled position of Jordan. Magic Johnson said, “There’s Michael Jordan and then there is the rest of us.” Larry Bird, following a playoff game where Jordan dropped 63 points on the Boston Celtics in just his second season, appraisal of the young player was: “God disguised as Michael Jordan.
A brief listing of his top accomplishments would include the following: Rookie of the Year; Five-time NBA MVP; Six-time NBA champion; Six-time NBA Finals MVP; Ten-time All-NBA First Team; Nine time NBA All-Defensive First Team; Defensive Player of the Year; 14-time NBA All-Star; Three-time NBA All-Star MVP; 50th Anniversary All-Time Team; Ten scoring titles — an NBA record and seven consecutive matching Wilt Chamberlain; Retired with the NBA’s highest scoring average of 30.1ppg.
However, his impact is far greater than awards and championships. He burst into the league as a rookie sensation scoring in droves with an unmatchable first step and acrobatic drives and dunks and concluded his career as a cultural icon. Along the way, he became a true champion who spearheaded the globalization of the NBA with his dynamic on court abilities and personal sense of style that was marketed to the masses.
The Jordan brand remains a cash cow for its owner Nike NKE -0.95% 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% for Under Armour UA -4.21% 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 include Gatorade , 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 plus, 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.
CONGRATS TO MR. MICHAEL JEFFREY JORDAN, THE GREATEST BASKETBALL PLAYER AND FINANCIAL CONTRIBUTOR TO THE NBA, IN THE HISTORY OF THE SPORT.
