Michael Jordan’s Decades-Old Risky Move Resulted in $20 Million Win vs Nike CEO

The deal between Michael Jordan and Nike stands out as one of the most iconic ones in the world of sports. When the NBA banned the MJ’s sneakers due to the use of too many colors, Nike covered all fines imposed on Jordan, ensuring he could continue wearing the sneakers during games. The bold move fueled a surge in demand for the shoes and the brand as a whole. But there was more than one risk involved in the deal. One was on the champion’s part as well. David Halberstam, in his New York Times bestseller, ‘Playing for Keeps: Michael Jordan and the World He Made,’ explored the entire captivating story.

Back in 1985, Jordan injured his left foot during a game against the Golden State Warriors. He had to miss out on 64 games. Following this injury, MJ almost made up his mind to sign with Adidas. This was even mentioned in ‘The Last Dance’ series. Because of this situation, Nike decided to have a meeting with Jordan and his agent. But it wasn’t off to the best start as His Airness kept then-CEO and co-founder Phil Knight and others waiting in the meeting for four hours.

That might have been a risky move on the Chicago Bulls star’s part. After all, even if Jordan went with Adidas, making an enemy of Nike wouldn’t have benefitted anyone. As David Halberstam wrote, “The prospect of an enraged Phil Knight using all of Nike’s not inconsiderable might and muscle to keep a new Jordan- driven company out of the world’s biggest sneaker stores was not something Jordan or Falk [agent] wanted to take on.”

However, it was MJ’s family who later convinced him to sign the deal considering the dedication and faith Nike had in him. Thanks to that Jordan was able to amass $20 million a year with his Nike deal. Furthermore, it seems that Mike’s opening move gained him some leverage during the negotiations. 

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“One thing that did come out of those negotiations was a far better cut in the revenues for Jordan, and by the early nineties, very quietly, without too much public fuss, he was making around S20 million a year from Nike,” said Halberstam. From not even being wanted by Nike’s CEO to signing the most lucrative sneaker contracts in sports history, the Black Cat was a master at changing the minds of people.

Phil Knight initially didn’t want to sign Michael Jordan

Sports marketing executive, Sonny Vaccaro unveiled yet another fascinating insight into Nike’s co-founder’s initial reluctance to sign the 5x NBA MVP. This choice was because of Knight’s strategic business decision-making.

Phil Knight considered to use to the cost of signing Jordan to sign multiple promising star athletes instead. There was also another factor of injury that could impact the company. Despite these initial doubts, Nike eventually opted to sign the deal with Jordan. And from Phil Knight to Sonny Vaccaro and even Deloris Jordan; everybody reaped the rewards.

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The debut of the Air Jordan line in 1985 was a significant deal propelling both the 14x All-Star and the Nike brand into unparalleled success. What are your thoughts on this captivating deal of sports and marketing history? Do tell us in the comments section below.