How Much Does Michael Jordan Make A Year?

In 2023, Michael Jordan made over $330 million as royalties paid by Nike for the sales of Jordan’s shoes and apparel (which amounted to over $6 billion in 2022 alone). Between 2018-2023, Michael Jordan made over a billion dollars in royalties from the sales of the Jordan brand.

Key Highlights:

Remarkable Royalties: Michael Jordan’s earnings in 2022 reached an exceptional milestone, surpassing $250 million. These earnings were primarily generated through lucrative royalties paid by Nike as a result of the immense popularity of his signature Jordan brand shoes and apparel.
Significant Sales: The influence of Michael Jordan’s brand was evident in the remarkable sales figures. The Jordan brand’s merchandise achieved an extraordinary sales volume, crossing the $5 billion mark in 2022 alone. This robust sales performance highlighted the enduring appeal of his products in the market.
Long-Term Triumph: The period from 2018 to 2022 witnessed an impressive financial journey for Michael Jordan. Over these five years, his cumulative royalties from the Jordan brand’s sales soared close to a billion dollars, reflecting a consistent and sustained presence in the market and consumer demand.

Related to Jordan

Who Owns Nike

The Knight family owns Nike. Indeed, the top individual shareholder is Travis A. Knight, son of Philip Knight, co-founder of Nike, with a 7% stake in Class A stocks and a 2.7% stake in Class B stocks. On the other hand, the Knight family also controls the company tightly through their Trusts and an LLC called Swoosh (the Nike logo’s shape is a “swoosh”). Through individual shares, Swoosh LLC, and Travis Knight’s irrevocable trust, the Knight family controls over 97.1% of Class A and 21.4% of Class B stocks.

Nike Business Model

Nike follows a wholesale strategy combined with a very strong direct distribution. The company makes money primarily from footwear. As of 2022, over 62% of revenues came from footwear and 29% from apparel. The most successful Nike brand is the Jordan Brand, which in 2022 generated $5.2 billion in revenue. Nike is the master of demand creation and generation through its influencer campaigns, where athletes become an inspiration for everyday people.

Nike Strategy

Nike leverages both a wholesale and direct distribution strategy. Indeed, while still in 2022, most sales come from wholesale distribution, in reality, since 2020, Nike has been ramping up its direct distribution through its NIKE stores and e-commerce platform (SNKRS).

Nike Revenue

Nike generated most of its revenue from footwear. Indeed, in 2022, Nike generated over $29 billion in revenue from footwear, over $13.5 billion in apparel, $2.35 billion in equipment, and over $1.6 billion from the Converse brand.

Nike Financials

Nike generated over $47.7 billion in revenue and over $6 billion in net profits in 2022, compared to over $44.5 billion in revenue and almost $5.8 billion in 2021.

Nike Mission Statement

Nike’s vision is “To bring inspiration and innovation to every athlete in the world.” At the same time, its mission statement is to “do everything possible to expand human potential. We do that by creating groundbreaking sports innovations, by making our products more sustainably, by building a creative and diverse global team, and by making a positive impact in communities where we live and work.”

Nike SWOT Analysis

Nike Competitors

Jordan Business Model

Jordan follows a demand generation business model, where its iconic brand works as a propeller for the sale of its footwear and apparel, that in 2022 generated more than $5 billion in revenue for Nike or more than 10% of its total revenue.

Converse Business Model

Converse is an independent brand part of Nike’s family of brands. Indeed, Converse generated $2.35 billion in revenue in 2022. And like Nike, it follows an heave Wholesale distribution strategy, where most of its sales are made, through footwear. However, Converse follows also a direct distribution approach where it sells directly via its monobrand stores.