That in itself is a testament to the relevance and massive pull of Michael Jordan's name attached to a sneaker brand. Brand Essence Wheel In A, What Is Brand Recall? As of July 23, 2020, Knight was ranked by Forbes as the 24th richest person in the world, with an estimated net worth of US$54.5 billion. Another risk I see in investing in Nike is the intense competition the company faces. Please do not hesitate to contact me. It looks like the NFL has recovered from any pandemic-related shortfalls, and then some. Celebrities wore them, turning it into a status symbol as a part of the elite. NikeThe Jumpman logo is owned by Nike to promote the Air Jordan brand of basketball sneakers and other sportswear. The movie, titled AIR and produced by Amazon Studios, will premiere globally in theaters on April 5. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. According to Mike Ozanian of Forbes, Jordan recently increased his ownership stake in the Charlotte Hornets from 80 percent to 89.5 percent, which put MJ over the billionaire threshold. The Jordan brand represents 10% of Nike's total revenue; this has become 1/10 the size of Nike's business model, which also comprises Converse as a separate brand. In fiscal 2022, Nike's Men's segment generated almost 19 billion U.S. dollars in wholesale revenues. For Jordan, every move he made on and off the court was about his ability to get a win. But opting out of some of these cookies may affect your browsing experience. stockelements/iStock Editorial via Getty Images. AP. With lower supplies, demands went back up and towards their direction. Guy Oseary and Ashton Kutchers venture capital firm, Sound Ventures, has closed a $240 million During the NFL Draft, Rich Paul unveiled the pieces from his inaugural Klutch Athletics collection with New Balance Rich Paul is one of the most prolific minds in sports. These days, a pair of Air Jordans costs around the $200 to $225 range. Show publisher information Here are two more data points to include when discussing the rise of women's sports In Nike's year-end earnings, the co. announced its "womens products outperformed mens and represented 24% of the total merchandising revenue for the company. German soccers governing body is reportedly set to resume discussions on selling a stake in a new media rights subsidiary. Nike's revenue by product category worldwide 2021 | Statista July 20, 2021. This website uses cookies to improve your experience while you navigate through the website. This provides further evidence that the company is currently undervalued. That means Michael Jordan made $150M+ from Nike last year aloneor nearly 2x his career NBA earnings. What Percentage Of Revenue Does Jordan Get From Nike? But the company big wigs in Germany deemed him too short at 6'6" because they were looking for a "seven-foot-tall guy.". Lorsque vous utilisez nos sites et applications, nous utilisons des, authentifier les utilisateurs, appliquer des mesures de scurit, empcher les spams et les abus; et. Compare NKE With Other Stocks LOOKS LIKE the wings on the Air Jordan 1 logo are buoying the Jordan Brand to new financial heights. Adidas ended up passing and committing likely one of the biggest (if not the biggest) missteps in its corporate history. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Jordan Brand Revenue Soars 31% to $4.7 Billion Nike's Jordan Brand continues its hot streak with revenue up 31% for the fiscal year ended May 31 to $4.7 billion. Based on Nike's current valuation and long-term competitive advantages over its competitors, combined with the company's growth prospects, driven by increasing direct sales and revenue of its Jordan Brand, I rate Nike as a buy. Last week, JPMorgan Chase & Co. expressed interest in investing up to $1.1 billion in Serie As media unit. The size of a potential stake, structure, or timeline has not been decided. The NBA legend and owner of the Charlotte Hornets made $90 million in salary over his NBA career. Jordan Tops All-Time Athlete Earnings List of a Billionaires Dozen 1 Novak Djokovic won his 10th Australian Open, earning $2.9 million for beating No. Table of Contents Our Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball using the Jumpman trademark. I have no business relationship with any company whose stock is mentioned in this article. These cookies do not store any personal information. Former Nike CEO Mark Parker disclosed last December that the Jordan imprint had recorded its first-ever $1 billion quarter. In fiscal '21, Jordan brand grew 31% propelling the business to nearly $5 billion, reported Donahoe. Michael Jordan likely made more than double his career NBA salary earnings in 2022 alone thanks to a decades-old licensing deal. Aerial Powers on Brittney Griner, WNBA Revenue Sharing & Jordan Brand For a short while, Adidas were the big boys in the sneaker scene. Family matriarch Deloris then advised her son to hear out Nike's offer. This equates to about 5% royalty for every pair of Air Jordans sold, or roughly $10 to $15 per shoe. In 2020, Jumpman, well jumped, and has continued to do so into 2021 as well. In 2021, the Jordan Brand accounted for 13.17% of Nikes wholesale revenues. 5 This allows the Knight family to exercise effective control of Nike even though it is a publicly traded business. In my analyses, I aim to identify companies that have strong competitive advantages over their competitors (for example, a strong brand image, cost advantages, special know how, strong pricing power, a strong distribution network, etc.) In 2021, the DFL terminated plans to sell a 25% stake in its overseas broadcasting rights following pushback from clubs. NIKE Direct revenues were $16.4 billion, up 32 percent, or 30 percent on a currency-neutral Next, I assume an average annual growth rate of 5% for the following 10 years. With the inspiration of Kanye West, the company birthed the Yeezys in 2013. (July 20, 2021). in order to support you to find excellent long-term investments. Please create an employee account to be able to mark statistics as favorites. This was the early '90s when sneaker culture wasn't a thing yet. The story will focus on how Nikes nascent basketball department signed Jordan in his rookie year, a deal that became perhaps the most lucrative athlete-brand partnership in history. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Learn more about how Statista can support your business. But when newer retros of the first Air Jordan hit the market, it was clear that Nike was back as the premiere sneaker brand in the game today. I have no business relationship with any company whose stock is mentioned in this article. Conversations were reportedly hindered late last year by the departure of CEO Donata Hopfen. The Jordan Brand just crossed $5 billion in annual revenue for the first time. Jordan Brand earned $19.4 billion in revenue over the last five fiscal years, a fact initially noted by Neon Money Club. Si vous ne souhaitez pas que nos partenaires et nousmmes utilisions des cookies et vos donnes personnelles pour ces motifs supplmentaires, cliquez sur Refuser tout. are so good, some are saying theyre better than their Moms French Toast. 80 Pine Street, Suite 3202 New York, NY 10005, Start and end your day with FOS in your inbox. If there was ever any question about who remains the king of sneakers and sporting apparel, Nikes latest quarterly financial reporting ended that debate with a nice $44.5 billion mic drop. But even after his swan song, the Jordan brand continued to rule the sneaker scene Until Adidas decided to spoil the party. According to Forbes Magazine, Nike has paid Michael Jordan about $1.3 billion since he signed his first contract with the U.S. sporting goods manufacturer back in 1984. Nike's Jordan Brand continues its hot streak with revenue up 31% for the fiscal year ended May 31 to $4.7 billion. In my opinion, the Nike stock is attractive for long-term investors who primarily focus on dividend growth. It is mandatory to procure user consent prior to running these cookies on your website. This all comes after a 15% gain last year despite the COVID-19 pandemic dragging down other divisions of the company. For one, MJ originally wanted to sign with Adidas before entering the NBA in 1984. This is an increase of 5% in comparison to 3Q21, where a revenue of $10.357 billion was generated. Woods has been with Nike since 1996, where he signed a huge $40m deal over five years, which was renewed for a reported $100m over a further five years. #1 Michael Jordan: $90-100 million/year, Jordan Brand On the one hand, its kind of ridiculous that a player whos been out of the league for 15 years is far and away the highest-paid athlete in the world when it comes to sneaker endorsements, but the Air Jordan line of basketball shoes is the whole reason players. The companys low dividend payout ratio also gives them room for future dividend enhancements. A notable exception was Nike. The end result? How Cisco helps connect and protect the league during the NFL Draft. Another U.S.-based financial services company has expressed interest in the media arm of Italys top soccer league. Tell your boss youre going to be a little late. dollars)." ", Nike, Nike's revenue worldwide from 2016 to 2021, by product category (in million U.S. dollars) Statista, https://www.statista.com/statistics/888793/nikes-revenue-by-product-category-worldwide/ (last visited May 02, 2023), Nike's revenue worldwide from 2016 to 2021, by product category (in million U.S. dollars) [Graph], Nike, July 20, 2021. Wendys Homestyle French Toast Sticks are so good, some are saying theyre better than their Moms French Toast. At the current share price, this results in an upside of 7.4%. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Based on those figures, Jordan may have earned. The bar for breakfast hasnt just been raised, its been completely replaced. The Nike contract after that one is said to have been worth anywhere in between $20m-$40m per annum for eight years. See what's happening with the Jordan Brand. We can say that Nike released its 2021 fourth quarter revenue and profits and 2021 fiscal earnings at the end of June. 49% of respondents play or has someone in their household who plays video games. The Jordan Brand in particular also plays a major role here. Aryna Sabalenka, who entered as the No. What Is The Meaning Of Product Development? I wrote this article myself, and it expresses my own opinions. What Percentage Of Revenue Does Jordan Get From Nike? They ended up raking in $126 million during the first year of sales alone. The Jordan Brand focuses primarily on athletic and casual footwear as well as on apparel and accessories. $4.711 billion, compared to last year's $3.609 billion. That 10-part series further boosted the stock of the iconic Jordan brand. The Jordan Brand Reached Over $5 Billion In Annual Revenue For - MSN Bloomberg exposed a notorious resellers connection to the company, Guy Oseary, Ashton Kutchers Sound Ventures Launches $240M AI Fund, Rooms You Cant Get Into: Klutch Athletics x New Balance VIP Brunch, JJ Watt, Kealia Watt Invest in Newly Promoted Premier League Club Burnley FC, Mat Ishbia on the Suns & Mercurys Huge Media Move, How TikTok Became the Home for the Rising Female Rappers of Gen Z. Michael Jordan And 'The Last Dance': By The Numbers - Forbes The exact amount? If nothing else, its only left them hungrier to retool and improve top to bottom and the numbers dont lie. Tomorrow is the last day to nominate for Rising 25! The Trophy Room x Air Jordan 1, limited to just 12,000 pairs, has been scandalous from when it first leaked up through its messy release last Wednesday. 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Available: https://www.statista.com/statistics/888793/nikes-revenue-by-product-category-worldwide/, Nike's revenue worldwide from 2016 to 2021, by product category, Value of the global footwear market from 2018 until 2028, Size of the global activewear market 2021 to 2028, Wholesale sales of athletic footwear in the U.S. 2008-2021, Wholesale sales of sports apparel in the U.S. 2008-2021, Value of the leading global apparel brands 2022, Global sales of the top performance apparel, accessories, and footwear companies 2022, Global sales growth forecast of top athletic wear companies 2022, American customer satisfaction index: athletic shoe companies 2010-2021, Global revenue share of Nike in 2022, by product type, Domestic sales share of Nike worldwide from 2016 to 2022, Global revenue of Nike from 2016 to 2022, by sales channel, Global revenue of Nike from 2016 to 2021, by product category, Global gross profit of Nike from 2014 to 2022, Nike's North American revenue 2009-2022, by segment, Nike's revenue in EMEA 2016-2022, by segment, Nike's revenue in Greater China 2009-2022, by segment, Nike's revenue in Asia Pacific & Latin America from 2016 to 2022, by segment, Number of Nike's retail stores in the U.S. 2009-2022, Number of Nike's non-U.S. retail stores 2009-2022, Nike's marketing expenses worldwide from 2014 to 2022, The adidas Group's net sales worldwide from 2000 to 2022, Global share of adidas retail sales in 2022, by region, Share of adidas' net sales worldwide in 2022, by product type, Share of Puma's sales worldwide in 2022, by region, Share of Puma's consolidated sales worldwide in 2022, by product category, Under Armour's net revenue worldwide 2008-2021, Under Armour's net sales share worldwide in 2021, by region, Global wholesale revenue of Nike from 2020 to 2022, by customer segment, Nike and adidas' share of the footwear market as of 2017, by region, Nike's revenue in Japan 2009-2017, by segment, Global brand value of Nike from 2016 to 2022, Global brand value comparison of Nike and adidas from 2010 to 2022, Nike's quarterly revenue worldwide from 2017 to 2022, Nike's revenue in Central and Eastern Europe 2009-2017, by segment, Gross profit margin percentage of Nike worldwide from 2014 to 2022, Nike's revenue in emerging markets 2009-2017, by segment, Nike's revenue in Western Europe 2009-2017, by segment, Nike's DTC revenue share worldwide 2011-2015, Nike and adidas' share of the sports footwear market as of 2017, Forecast of Nike's global market share in athletic footwear 2011-2025, Nike's scope 3 GHG emissions 2015-2021, by segment, Retail price breakdown of Nike Cortez/Roshe running shoes 2015, Number of employees at ANTA Sports Products China 2012-2022, Genesco's sales share worldwide in FY 2022, by brand, Sales value of Patek Philippe Espaa 2013-2017, Nike's revenue worldwide from 2016 to 2021, by product category (in million U.S. dollars), Find your information in our database containing over 20,000 reports. Get full access to all features within our Business Solutions. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Show sources information Jordan Brand Revenue Is Up 15% As The Rest Of Nike Struggles According to the magazine, it was the richest endorsement deal ever made and helped the company to convert itself into one of the most valuable consumer brands in the world. The fact that Nikes P/E (FWD) Ratio is currently 31.91, which is 10.27% below its average from the last five years (35.56), gives us yet another indicator that the company is currently undervalued. From the kicks, we now get to the merch. Goldman Sachs has yet to disclose how much it is willing to invest in Serie A. Meanwhile, Jordans deal with Nike included a clause for royalties. Eighteen years since he played his last NBA game in Philadelphia and 37 years since his first signature basketball shoe, Michael Jordan continues to put up stellar numbers. Sales rightfully plummeted, as a consequence. In 2021, Nike's sportswear category generated approximately 15.1 billion U.S. dollars in revenue. In my view, one of the biggest risks of investing in Nike is the danger the company would face if their brand image were to get damaged. All rights reserved.80 Pine Street Suite 3202 New York, NY 10005. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. But it wasnt just the Swoosh that continues to grow. The words of Nike founder Phil Knight also illustrate the importance of the Jordan Brand: in an interview with USA Today, he described signing Michael Jordan as the best business decision he has ever made. You may not like it, but you're going to go listen.' So what does Nike do? The company lost its contract with Kobe Bryants estate when the Laker legends widow chose not to renew it. This included dividends to the amount of $484 million and share repurchases of $1.2 billion. The Jordan Brand is far from done. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. The company has reportedly considered an investment since October 2022. Media Vous pouvez modifier vos choix tout moment en cliquant sur le lien Tableau de bord sur la vie prive prsent sur nos sites et dans nos applications. The gain comes on the heels of a 15% gain last year. The DFL, which is expected to agree on the talks at a meeting in early February, will consider both domestic and international rights, according to Bloomberg. Sasser spoke about Houston and how he's preparing for the draft. I wrote this article myself, and it expresses my own opinions. Revenues for NIKE, Inc. increased 5 percent to $46.7 billion, up 6 percent on a currency-neutral basis. T&Cs apply. Today, Nikes revenue is 93% higher than the revenue of competitor Adidas. The revenue of the Jordan Brand increased by 31% in 2021 in comparison to 2020. Due to the enormous strength of the Jordan Brand image in combination with the strong financial results it has brought Nike in the past, I assume that the Jordan Brand will continue to be one of Nike's growth drivers in the future. They became a fashion statement. pic.twitter.com/4xjEk8OzOt. Just like that, a sneaker revolution commenced. Ever since the initial release in 1984, the Air Jordan and its related products have expanded Nikes domain and continues to define the modern basketball and sneaker culture we know today. This data highlights that it was one of the. The athletic footwear as well as the apparel and equipment industry are all extremely competitive, not only in the U.S. but also worldwide. See draftkings.com/sportsbook for details. Currently, you are using a shared account. Working with Wit, the NFL launched a digital activation that put fans in charge: A Caused-Out Cleats generator that combined their favorite teams with their charity of choice, complete with the chance to win a real life pair of caused-out cleats. Nike has released its financial report for both the 4th fiscal quarter (March 1 to May 31 of this year), as well as its full fiscal year. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. China And 'The Last Dance' Propel Nike's Jordan Brand To - Forbes From his in-game stats to endorsement deals, Jordan has worked to ensure his household name is expanded beyond the basketball court. Jordan is getting around 10-12 dollars per shoe and he is selling millions. My Cause, My Cleats is one of the most successful undertakings by the NFL in recent years, raising awareness for charitable causes (and letting players rock some wild kicks in the meantime). This could have a serious impact on the company's financial results. It also came with a really cool and captivating TV commercial. According to data from Seeking Alpha, analysts are currently estimating a revenue growth for Nike of between 7% and 14% year-over-year in the periods between 1Q23 and 4Q24. Secondly, through Nike's partnerships with the best athletes in the world. How many companies does Michael Jordan own? Compared to 2020 (in which the revenue of the Jordan Brand was $3.609 billion), the revenue of the Jordan Brand increased by 31% in 2021. The fact that the Jordan Brand is Nike's second most important product category after Sportswear, shows us the enormous importance that the Jordan Brand has for the company. Michael Jordan doesnt own his brand, but he does get a cut of Nikes revenue. "Jordan Brand Shines" : Nike's Michael Jordan Brand Sales Rose to $5