Five thousand dollars. That was the fine that the NBA slapped on a 21-year-old Michael Jordan every time he stepped foot on the basketball court in 1985. Given the choice, most people would deem being fined $5,000 every time they went to work a rather unwise investment – but most people aren’t Michael Jordan. Thirty years ago, American apparel company Nike took a risk. It was no secret that Michael Jordan was set to be a star, but while others balked at the idea of investing too much in the young rookie, Nike went the other way, offering him a deal that would earn him $7 million over five years. By comparison, up until that point the previous highest contract was James Worthy’s arrangement with New Balance, an eight-year deal worth $150,000 per year. Nike had well and truly placed their chips on the black and red uniform of Chicago’s number 23.
I am confused if there is a question being posed here or if you agree that Michael Jordan's deal did change sports marketing? The blog post is just an exact snippet of the article.
ResponderEliminarHowever, I do believe this deal was a complete game changer in sports. Up until this point, there had been local city companies endorsing players and even some national campaigns featuring players. Nike was the first to have an all out global campaign with one player as their face...and it worked. Other companies took notice of what could happen if they marketed players the right way, and the rest was history.
The deal that Michael Jordan signed with Nike was a huge risk for the company but one that is still paying extremely high dividends to this day. Jordan originally wanted to sign with Adidas but Nike took a gamble and hit the jackpot. Jordan's deal definitely shaped the sports endorsements world as it is today.
ResponderEliminarIt is clear that this deal was a precedent of what would come in terms of sports sponsorships. Larger and larger risks are being taken by companies trying to identify and get their logo on potential star players. Identifying talent is difficult to do and with a competitive market like this one, there must be sponsorships deals that have fallen through due to lack of progressive careers. An example that first comes to mind is Jack Wilshere who had unbelievable potential but has in recent years fallen off the path due to injuries- Nike and Pepsi surely took a risk and the return on investment might not be coming back to them.
ResponderEliminar-Colin Zaccagnio
Very interesting analysis of how the risk Nike took with Jordan is monumental. It's amazing to think that although he doesn't play anymore his influence on the game, sports clothing, and merchandise still exists. I can compare this to the lifetime deal Nike recently made with LeBron James. Even when he is retired and done with basketball for good his name will still be part of Nike's advertising strategy and brand. I am a bit confused as to why you started out the article discussing his fines though. What does that have to do with his endorsement deal? Overall, very well written and interesting initial post.
ResponderEliminarI think you're right that Nike changed the way companies look at endorsements. They are always looking at the next big star and taking risks. Getting young and potential super stars to sign deals is huge for up and coming companies like Under Armor signing Steph Curry. I am surprised this did not lead you to talk about how this could affect college sports players or even young players in youth leagues in Europe. I think now a lot of questions are being raised such as, is it ethical to give a deal or even talk to a young players. Jordan was just the start and now people unfortunately are doing shady things to talk to players even younger than Jordan when he signed the deal as a rookie.
ResponderEliminarJordan's endorsement deal with Nike was easily the best decision ever made by both parties. Jordan STILL makes more money than almost every current athlete. According to Forbes, Jordan made more money in the last 18 months ($100 million+) than any active athlete not named Pacquiao or Mayweather. That statistic alone shows exactly how Jordan's Nike deal changed sports marketing forever. As for Nike, the Jordan endorsement provided incredible brand value to the company. I dont think any athlete will ever reach the same sphere of iconic influence as Michael Jordan's Nike deal.
ResponderEliminarI am surprised that Adidas or Converse wasn't able to sign him before Nike though. Before the Nike deal, all Michael Jordan wanted to wear was adidas in the NBA and he made that blatantly clear, but Adidas just dropped the ball. As for Converse, who had players such as Magic, Bird, and Dr. J on their roster, didn’t have the desperation it should have had in negotiations with Jordan.
If one of these companies had signed him to an endorsement deal instead of Nike, the sports marketing world might be completely different than what it is today.