We all know that Michael Jordan is a very rich man. In addition to being regarded by many to be the greatest basketball player of all time, MJ is also the first black billionaire athlete. Roughly half of MJ's net worth can be attributed to his 90 percent ownership stake in the Charlotte Hornets (Jordan's stake is worth around $500 million, net of debt). The other major source of wealth for the 52-year-old is his deal with Nike. In 2014, Jordan brand sold $2.6 billion worth of shoes in the United States alone. As a result, Jordan was paid approximately $100 million in royalties from his Jordan brand sales. While those numbers seem more than solid, wait until you hear how much Jordan's yearly royalty is projected to be by the year 2020…
Nike is the world's leading sportswear company, with a reported revenue of $30.6 billion in revenue this past year. Despite the fact that Nike has such a stranglehold on the athletic footwear market (the company has nearly 60 percent of the North American athletic footwear market), the Oregon-based company is not resting on its laurels. Nike CEO Mark Parker said at a recent investor's meeting that the company projects to hit $50 billion in annual revenue by 2020, with over half of that amount being the women's apparel business (the women's apparel business made $5.7 billion worldwide this past year).
Now to the Jumpman. According to Parker, the company wants to move the Jordan brand above being something that is limited primarily to basketball. Basketball has made up the lion's share of the Jordan brand's revenue over the past 30 years. As a result of the company's plan of taking on creating more products for other sports, Parker projects the Jordan brand to be a $4.5 billion business by the year 2020.
If that comes true, how will MJ's bank account be impacted? Michael Jordan made $100 million in royalties off of Jordan brand's $2.6 billion in revenue. That equates to somewhere between a four and five percent royalty. So if we extrapolate that to Parker's projection of $4.5 billion in 2020, Jordan will likely earn around $200 million in Jordan brand's revenue in 2020. That would be more than TWICE what he made over the course of his entire 15-year career ($93 million)!
Even though he hasn't played an NBA game in over a decade, it's safe to say that MJ is still ballin'.