Michael Jordan is a legend transcending basketball, with his impact as a global icon felt both on and off the court. In 1984, when MJ was about to get drafted into the NBA, he had three major sneaker brands vying for his signature. This gave Michael significant leverage in negotiating terms and earning a contract that would suit his worth as an athlete. And after hearing Nike’s bombastic $2.5 million pitch, MJ once revealed how he asked Adidas if they could match that, out of nothing but loyalty.
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Although then-$1.28 billion worth Adidas was initially Jordan’s first choice to sign a contract with, Nike swayed him away with their lucrative offer. They offered MJ his own line of shoes, called the Air Jordan, a $2.5 million deal for five years and an additional 5% royalties on the profit from the sale of his signature line. Adidas and Converse were not willing to match this offer at all, given their plate was already filled with a line of star athletes.
Michael Jordan’s first loyalty lay with Adidas before signing with Nike
Jordan always wanted to choose Adidas over any other company, even before he became a professional. In archival footage from before his professional career, Jordan appeared saying, “I like the Lakers, I like Marques Johnson, and I like Adidas. I like Adidas shoes.” This indicates Jordan’s natural faithfulness or loyalty toward Adidas over the other sneaker brands. In an interview much later in his career, Jordan said the following on the matter, something you can watch in Mike Damz’s YouTube clip below.
“I went through the presentation with Nike. You know, they really made a great effort of trying to have me and have my input on the shoe design, any shoes that I wanted to wear. But then I was very loyal. I went back to Adidas, the Adidas contract that I had and say ‘look you know this is the Nike contract. If you come in anywhere close, you know, I sound with you guys'”
However, Adidas’s offer was nowhere close similar to Nike’s. Michael’s agent David Falk revealed how Adidas was also dysfunctional during that time due to leadership changes, and also was not willing to offer Michael his own line of shoes.
Jordan ended up signing with Nike and creating history with the brand. The $2.5 million deal has made Jordan the face of Nike and its basketball presence globally. Besides, Jordan’s deal was a crucial business move for the Oregon-based company toward becoming a global sporting brand.
Nike and Jordan’s partnership was a solidified one for the future
It would have been hard to predict a mere NBA rookie’s career path. Yet, Nike signed him on with all the passion in the world. Their deal for Jordan was massive, especially considering the company’s mere $25 million net worth at the time. And because of it, top executives such as Phil Knight and Sonny Vaccaro were involved all the way in having MJ on board with Nike.
Air Jordan first started out being Michael’s line of shoes. However, in 1997, Nike formed a separate brand out of Jordan, with MJ earning a 5% royalty from the profits. In the last five years, the Jordan brand has earned $19.6 billion alone, which has benefitted Nike massively. On the other hand, Adidas lost out on significant opportunities and profits due to its rigid approach to business beyond the European continent back when it mattered most.
