Top 5 Ways Michael Jordan Still Makes His Money?
Why Michael Jordan earns more money today than when he played in the NBA.
HoopsVibe’s Very Quick Call: MJ shows us all how branding is king for long term success.
Some NBA stars go broke soon after retirement, but Michael Jordan actually earns more today than when he was in the NBA. Jordan brought in an estimated $80 million last year and has a net worth close to $650 million according to Forbes Magazine. Some are already speculating that he could be the first former NBA player to become a billionaire. Here is the breakdown of Michael Jordan’s Top 5 revenue channels.
1. The Jordan Brand. This is the golden egg. The Jordan brand is a division of Nike that remains hugely profitable and massively influential. In 1984 Jordan originally signed a 5-year $500,000 contract with Nike. Last year this was worth an estimated $60 million. The Jordan brand deserves it too. They dominated over 71 percent of the basketball shoe market in 2012.
2. Earnings from playing in the NBA: This is a relatively small part of the Jordan empire. If you total up all the money MJ made for actually playing basketball it comes to $93.7 million of his roughly $650 million in net worth. His money from actually playing basketball is still a serious chunk of cash, but in comparison to his business ventures makes up far less in the Jordan empire than many assume.
3. Charlotte Bobcats: This investment has actually lost Jordan money, but he double downed on it last year and upped his ownership to 80 percent of the Bobcats. Yes, MJ is a serious gambler. Now that he is the majority owner, if MJ can turn the Bobcats around this could be a hugely profitable portion of his portfolio. If Charlotte did become a relatively successful team this would likely be the piece of the equation that would make Jordan a billionaire.
4. Hanes, Gatorade, Upper Deck Endorsements: MJ’s endorsements add up to just under $20 million. Jordan remains one of the most identifiable athletes in the world and uses that status to his advantage as a family oriented brand. His long-standing relationships with these companies continue to garner top dollar in the market.
5. Restaurants: You’re hardly a celebrity unless you own at least a couple restaurants. Michael Jordan Steakhouses are in New York, Connecticut, and Chicago. These are a relatively small drop in the MJ portfolio, but it just goes to show the diversification of his income.
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