5 Ways Michael Jordan Made His Billions, It Wasn’t Just the Shoes!
Who would love to not only be a millionaire but also be a billionaire! I just want to wrap my head around this Last Dance documentary that I had talked about previously as well. Just kind of trying to figure out how Michael Jordan made his money. Because it’s one thing to be a player but another thing to be a billionaire. Michael Jordan is considered to be the first-ever billionaire athlete.
Today, I am going to go over some insights into how Michael Jordan became a billionaire. These insights might even help you out in your aspirations to not only become a multimillionaire but also a billionaire. So, first off, consider his perspective. For every typical American that spends $1, Michael can spend $21,000. That’s how rich he is.
Now let’s get down to history. Michael Jordan was being paid only $550,000 a year during his first year and that too as the third overall pick for the NBA. Nowadays, the first overall pick makes at least $40 million for a four-year contract! That’s a huge difference in merely three decades.
Michael surely put in the hard work for the money he started making later. He played 12 seasons, won four NBA titles, won four MVPs, before his 13th season when he finally got paid a huge sum. It only then did he become the number one overall highest-paid player in the NBA. He finally started getting paid $30 million a season. He put in 12 years of his life to achieve this.
The second major way Michael made his money was through endorsements. He had signed with Chevrolet, Haynes, Gatorade, Wheaties, Coke, and so many more. But there was one that was the most significant. It paid him a billion dollars in cash flow since the inception of them signing the contract. And that company is none other than Nike.
Jordan was initially confused between Adidas and Nike but since Adidas was not eager to match Nike’s offer to Jordan, he signed on to the former. Nike wanted a return of 3 million dollars in five years from the deal. However, Jordan’s popularity was so high that he sold 126 million dollars in shoes in the first year itself! This was the third way he made his money.
The fourth way was a purchase of the Charlotte Hornets in 2010 for 180 million dollars. Due to an unrelated event that affected all the NBA teams as a whole, Jordans’s Charlotte Hornets’ value skyrocketed. So, Jordan’s wealth went up too as a result. The fifth way is plain old investments. He has investments in so many brands and companies and that increases his wealth over time as well.
So, if you take a good hard look at his life, he has had multiple sources of revenue. In many cases, his money did the earning for him. That is why he is a billionaire and he is poised to reach even greater heights in the future.