By Adam Riddick
Michael Jordan’s Shoe deal
Michael Jordan, one of the greatest basketball players in the world, has the most expensive shoe deal in the NBA. During the 1980’s, Nike was very underdeveloped and desired to make a difference in the market. They decided to make a $250,000 a year shoe deal with Michael Jordan and give him profit share of the shoe sales. The shoe was very unique and was made to gain attention from the public. Air Jordan was released in 1985 and the demand for the shoes was set extremely high.
The demand for the shoes were so high that Nike experienced a shortage in shoes, which forced them to make different variations of the shoes. The sales for the ads of the shoes went up to around $2 billion by 1986. The sales for the shoes by itself went up to around $100 million in only a year. Air Jordan turned Nike into a successful and well-developed company. This shoe deal was said to be one of the biggest marketing successes in the history of sports itself. This shoe deal is still going on today and its value is around $130,000,000. Inflation started to rise and the prices for the shoes started increase, but demand was and still is high. The shoes would be considered inelastic due to the price change having minimal effect on the demand
Jordan’s last season with the Bulls
During Michael Jordan’s last season with the Chicago Bulls, he made a great impact on the economy itself. Michael Jordan gained around 27.5 million dollars after he finished his eight year deal with the Chicago Bulls in 1996. The salary cap in the NBA was said to be 24.3 million dollars, but Jordan exceeded that heavily when he signed a 30 million dollar one-year deal with the Chicago Bulls right after his eight-year deal with them ended. The Bulls valued Michael and wanted to keep him in Chicago for as long as they could. Jordan’s deal had a incredible impact on the market as a whole as it was the first 30 million one-year deal in the NBA.
Jordan continued to break records when his salary went up to $33.1 million right before his predicted last season with the Bulls. The demand for Chicago Bulls games increased heavily since this was his final season and fans did not want to miss out on the last chance to see him play for the Bulls. The demand for Michael Jordan’s games was so high that ticket sales went up to $30.5 million and NBC was paying over $200 million to show these games. He was said to have had a 10 billion dollar impact on the economy. The impact Michael Jordan had over the NBA Market and the economy itself was incredibly powerful.
Works Cited
https://www.linkedin.com/pulse/how-michael-jordans-250000-sh oe-deal-became-100-million-kelechi-ogoke#:~:text=However%2C %20something%20changed%20his%20mind,the%20sales%20of% 20his%20shoes.
https://boardroom.tv/michael-jordan-last-dance-season-economic -impact/#:~:text=In%201998%2C%20Fortune%20estimated%20 Michael,PTI's%20Michael%20Wilbon%20told%20Boardroom.
https://www.theshitbot.com/most-expensive-nba-sneaker-deals/# :~:text=1.,34%20years%20of%20amazing%20sneakers!