Back in the 1980s, Nike was a shoe brand that hardly gained notice. That was until it collaborated with Michael Jordan.

From then on, most know how the company got back on track. They initially focused on joggers and runners, which is why they were hailed as America’s fitness craze. However, as the fitness craze evolved, Nike failed to see the trend. They overlooked investing in other sports areas, so business went terribly.

Although revenue took a hit, the company was able to explore other areas it could tap into and potentially boost revenue. They tried out basketball but knew they needed a player the world would look up to. That turned out to be MJ.

Air Jordan saves the day
Nike had several players to consider. Larry Bird of the Boston Celtics and Magic Johnson of the Los Angeles Lakers were the top trusted names back then, although it would cost them a small fortune to sign them.

In the end, they opted to invest in Jordan. They offered the Chicago Bulls rookie a $5 million five-year deal with royalties. He was also given Nike stock options that jacked up his compensation to $7 million in that span. Given that Jordan was wowing basketball fans with his dunks and gravity-defying plays, it was a worthy gamble.

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From there, things just fell into place. Air Jordan sales skyrocketed to $107 million over the last three quarters of that year, helping Nike etch its name in the athletic shoe market.

“We hit a home run with Air Jordan,” Kevin Brown, head of Nike’s communication department said back in 1986, said via UPI.com. “It has single handedly turned us around,” he added.

Although Nike was still known at the time as a running shoe company, it was only a matter of time before they made their mark in the basketball shoe niche. To this day, 58% of basketball shoe sales are Air Jordans, generating over $2.5 billion in sales annually per Celebrity Net Worth.

Jordan’s net worth
As for Jordan, this catapulted him into one of the wealthiest athletes of all time. His annual royalty check ranges from $80 to $100 million, although his check has topped $100 to $120 million in several years.

In addition to Nike, Jordan has endorsement deals with other brands, such as Gatorade, Wheaties, McDonald’s, Coca-Cola, Chevrolet, Ball Park Franks, Rayovac, Hanes, and MCI.

Taken together with other business investments, Jordan was recognized as the first-ever athlete to crack Forbes’ annual list of the 400 richest people in America. As of April 29, 2024, he had a net worth of $3.2 billion.