The dawn of Michael Jordan was the beginning of a new era for not just the Chicago Bulls but also the NBA. Before him, Magic Johnson and Larry Bird had paved the way for the league to thrive. But upon MJ‘s arrival and subsequent success, the league not only thrived but became an entity that rivaled even the biggest sports league in the world.
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MJ was the golden child, the goose that laid golden eggs. But unlike the fables, Jordan had no limits on the eggs that could lay. It was limitless. The ticket sales increased not just for the Bulls but for every stadium they visited. The sale of merchandise also increased by leaps and bounds.
In conclusion, the Bulls surpassed all their expectations. The potential they had anticipated in Michael Jordan was nothing compared to the real deal. So, when Jerry Reinsdorf offered MJ an 8-year contract worth some $25 million, it clearly seemed like the team was taking advantage of their golden goose.
Jerry Reinsdorf criminally underpaid Michael Jordan
In his book, Michael Jordan: The Life, Roland Lazenby, who also authored Showboat, wrote about Michael’s contract and how he was underpaid compared to most stars. Even in the wake of his $25 million contract, Jordan was nearly not making as much as he should have.
Michael’s performances made Bulls tickets the most demanded in the entire league. People lined up to watch him play live and all the while, Bulls profited from their sales. In addition, so did the teams MJ and his team played on the road.
Roland Lazenby: “Besides, anyone could see that the Bulls were getting better, driving more exciting change for the franchise. For example, the supply of Bulls season tickets was exhausted by the fall of 1988. If you wanted to ride on the Jordan express, you had to get on the waiting list. His team coffers plump with revenue just four short years from the time that the Bulls seemed doomed, Jerry Reinsdorf rewarded his star with a contract extension that September, reported to be worth about $25 million over eight seasons. This new deal, too, would be outdated in record time. They were all headed into a blizzard of cash.”
$25 million perhaps could have been an understandable contract if Chicago was only making money from ticket sales. But in reality, they controlled 40% of all merchandise sales across the NBA. The combined profits were staggering, for the league and the Bulls. Yet, Reinsdorf only offered MJ $25 million.
Roland Lazenby: “That season, the Bulls would lead the league in the sales of licensed merchandise and they would do so for the foreseeable future. “To put that in proper perspective,” recalled longtime Bulls VP Steve Schanwald, “about 40 percent of all NBA licensed merchandise sold was Bulls-related.”
AGAIN: The reason Jordan’s Bulls were broken up prematurely is that the owner, Jerry Reinsdorf, ALLOWED Jerry Krause to get jealous and resentful of MJ and Phil and ALLOWED HIM TO BREAK THEM UP. Kraft always took Brady’s side, even after 20 years.
— Skip Bayless (@RealSkipBayless) April 27, 2020
Reinsdorf wasn’t too kind to his stars
With all the success Chicago saw after Scottie Pippen and Michael Jordan rose to success, one would imagine the owner showing his gratitude with at least a good contract.
But Reinsdorf did not. He underpaid both his stars, who were unfortunately two of the best talents in the league. He even engaged in a rather spiteful battle with MJ in 1996. Though he eventually relented and offered MJ the contract he deserved, it was a little too late to reclaim himself as a grateful owner.
