Nike is dealing with serious financial challenges, marked by a significant drop in sales in 2024. This downturn could affect Michael Jordan’s $260 million earnings from his iconic partnership with the brand—an alliance that began with his endorsement deal in 1984 and the launch of the first Air Jordans in 1985.
As Nike navigates rough waters, the future of this legendary collaboration may be at risk.
Inside the Game-Changing Nike-Jordan Deal
In 1984, as Michael Jordan entered his rookie NBA season, he was courted by major sports brands like Adidas and Converse. Though he initially leaned toward Adidas, his agent David Falk saw potential in Nike and arranged a meeting.
Nike offered Jordan a five-year deal worth $500,000 annually—triple the average NBA endorsement at the time—and promised a signature shoe line. That led to the launch of Air Jordan in April 1985.
Nike hoped to make $3 million from the shoes over three years, but the line brought in $126 million in its first year. The deal not only boosted Nike’s rise but also changed sports marketing forever.
A groundbreaking part of the contract included royalty payments, which have earned Jordan over $1.3 billion to date—securing one of the most lucrative athlete-brand partnerships in history.
What’s Causing Trouble for Nike?
A new report from Reuters highlights 11% drop in foot traffic at stores and a sharp 35% decline in app downloads during the fourth quarter of 2024.
The financial outlook doesn’t look any better. Reuters says Nike’s third-quarter revenue is expected to fall by 11.5% compared to the previous year — dropping from $12.44 billion in 2023 to $11.01 billion in 2024. That’s a massive $1.43 billion loss.
But the problem isn’t just financial. Recent Nike marketing efforts haven’t connected with customers, facing backlash online for high prices and unappealing ad designs.
Jordan Brand: Still Soaring?
While Nike facing tough times, Jordan Brand continues to hold strong in the market. Recent figures estimate $7 billion in sales for 2024, making up 14% of Nike’s total $51.4 billion revenue during that time.
And even though some releases, like the limited Air Jordan 1 High ’85 “Banned,” received mixed reviews from sneaker fans, the brand saw a 6% increase in yearly sales, keeping Jordan’s royalty income steady and proving his lasting influence in pop culture.
