The GOAT debate between Michael Jordan and LeBron James is unending. And while stats and other accolades remain the crux, many often fail to consider the brand value that both these superstars’ names generate. LeBron and MJ are both signed with Nike. In 2003, LeBron signed a seven-year deal with Nike worth $87,000,000. Jordan at the time signed for $2,500,000. Despite the difference in sum LeBron still lags in gaining the same popularity as Jordan’s shoes over his 20-year career.
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Comparing both Jordan’s and LeBron’s line of shoes by Nike, Brian Windhorst, in his book LeBron Inc. notes,
“By comparison, the Jordan Brand at Nike was pulling in more than a billion a year in sales during the 2000s and had crossed into more than $2 billion a year by the 2010s, according to industry analysts. Jordan gets a portion of the gross sales, racking up tens of millions each year in royalties.”
These figures are humongous, considering MJ signed with Nike in his rookie season for just $500,000 in 1984 and had a contract worth $2,500,000 in a five-year deal. This was almost $85,000,000 less than LeBron’s contract with Nike. However, the brand ‘Air Jordan’ always seemed to be the jewel in the crown for Nike. All of this is in spite of LeBron being touted as the successor to this brand name.
Comparing Michael Jordan’s and LeBron James’ contracts with Nike: What made Jordan a more successful brand?
Michael Jordan was Nike’s all-in attempt to increase their brand value. A risky move that paid off. Sonny Vaccaro urged Phil Knight to gamble on a rookie in the 1984 season, offering MJ $500,000 in 1984 to sign a five-year deal worth $2,500,000. This was perhaps one of the best decisions Phil Knight made, given the Jordan brand is now known beyond basketball. It has permeated into entertainment, and streetwear culture, and is revolutionizing the fashion and lifestyle industry.
Former vice president of Nike, Rick Anguilla, was quoted by Windhorst in his book where he said,
“The Michael Jordan situation was so unique, it probably couldn’t be relicated. It’s like the second man on the moon. It’s not the same.”
Nike had taken a similar gamble in an 18-year-old LeBron James in 2003. A seven-year contract worth $87,000,000 with the young high school athlete, James was touted as the virtual successor to MJ’s brand success. Perhaps, Rick Anguilla was right in his statement. Jordan’s brand value could never be replicated.
Windhorst further notes that the LeBron shoes’ sales were average compared to Jordan’s. Industry analysts figured LeBron’s signature shoe line was pulling in revenue of less than $100,000,000 annually in its first six years of launch in the United States. Although LeBron’s brand name had a good value attached to Nike, Jordan’s brand was unparalleled.
Indeed, MJ was able to make the Lakers stars’ signature shoe line look like chump change in front of his own brand value and image.
How much does Michael Jordan earn from his contract with Nike?
Michael Jordan has amassed around $94,000,000 with all his achievements during his time with the Chicago Bulls. In comparison, LeBron James is expected to make over $97,000,000 with the Lakers in his upcoming two seasons. However, considering how much MJ earns from Air Jordan, the figures might feel insurmountable compared to his career earnings as a player.
In 2022, Jordan made approximately $256,000,000, which is thrice the figure of his earnings from the NBA. MJ earns 5% royalties from the Jordan brand. He doesn’t have a contract deal with Nike.
Perhaps, the brand success behind Michael Jordan’s name comes from the inherent nostalgia attached to it. Even if it’s been 20 years since Jordan last stepped foot on an NBA court, basketball fans always associate him, the brand Jordan, and the number 23 as one of the greatest to play the game.
