The Business Legacy Of Michael Jordan: How A Basketball Star Became A Billionaire

Michael Jordan last played in the NBA in 2003, yet his name has remained synonymous with the sport. He owned the Charlotte Bobcats/Hornets for a stint before selling the team last year, and media features like The Last Dance and Air have introduced him to the younger generation. Air highlighted perhaps the most important relationship in Jordan's life: his partnership with Nike. He rejected offers from more established companies like Converse and Adidas to sign with the upstart shoe company, and the move has worked out incredibly well for both sides. As Jordan's career progressed, his Jordan Brand line became more popular, with fans around the world wanting to be like Mike.

Shortly after The Last Dance aired in 2020, Jordan Brand had about $3.6 billion in sales over the previous 12 months. In 2023 — a full two decades after Jordan's final NBA game — Jordan Brand shoes hit $6.6 billion in sales. And because Jordan knows the power of a good brand, he set up a fantastic deal with Nike. He receives a 5% royalty on all Jordan Brand revenue.

Five percent of $6.6 billion is $330 million. That's how much Michael Jordan made from Nike in 2023.

Jordan earned more in 2023 than the largest contract in NBA history — and that contract is a five-year deal. The Nike royalties are especially staggering when you consider Jordan's career on-court earnings.

In 15 NBA seasons, Jordan made $94,022,050, with about two-thirds of that coming in his final two seasons with the Chicago Bulls. He earned about 3.5 times his entire NBA career salary in 2023 alone.

The Nike deal is a significant factor in Jordan becoming a billionaire, and he’s not slowing down anytime soon. At his current pace, Jordan could hit $500 million in annual royalties in the next decade, which would double his net worth to $5.2 billion.

Jordan's deal with Nike is very likely the best business decision an athlete has ever made. It’s still paying dividends decades after his retirement — and will continue to do so as long as people are playing basketball.