How Michael Jordan's Nike deal changed sports marketing forever

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.

http://edgardaily.com/en/life/2015/how-michael-jordans-nike-deal-changed-sports-marketing-forever-10185

Adidas vs. Nike

Over time, Adidas and Nike have both been the biggest companies in the world of sports players endorsements. Both represent many players and teams coming from just about every professional sport. So what is the difference and how do players and teams chose which one they would rather represent?
It is always a battle between these two companies. Nike may sponsor the entire NFL now, but Adidas still has more individual sponsors worldwide, including most of the European futbol players and much of the most recent fifa world cup. In the financial battle right now, Nike is on top, but Adidas is a close second. Both companies have a huge industry with many workers and dedicated owners. Practically all professional players in the world now are sponsored by the or the other, so there is little variation between the two.

How can players decide which companies they want to sponsor, especially when it comes to the two highest profiting ones in the world? What is the criteria these players are looking for, especially with two companies that are so similar?

http://www.bbc.com/news/business-28791088

Being the Best Pays Off (Literally)

In what is considered to be the oldest and most prestigious tournament in the world,  the Wimbledon Tennis Tournament, lucrative endorsement contracts seems to be where these athletes make a majority of their money. The goal for these tennis players is obviously to win Wimbledon and with that they would get prize money of 2.74 Million Dollars. However the endorsement possibilities that they rack up are is what's really keeping them afloat. For example Rafael Nadal, a spanish tennis player made 28 Million dollars in endorsements alone. He represents companies such as Nike, Tommy Hilfiger, and Richard Mille. A perfect example of representation is on game day. He will come out on court wearing a 1 million dollar Richard Mille watch and even play in it, all while dressed in Nike from head to toe. What are some pros and cons to making more from endorsement deals versus the official matches?

Biggest Athlete Endorsement Deals In Sports History

http://www.totalsportek.com/money/biggest-endorsement-deals-sports-history/

15 Athletes Who Made More Money off Endorsements than Playing

It seems unusual to most people that an athlete could earn more from endorsement, advertising and sponsorship deals than they actually get paid for doing the very thing that has made them so famous, but the reality is that it far from a rare occurrence. The greatest sporting figures are recognizable faces across the globe, as well known as the biggest movie or pop stars, and therefore it is not surprising that they are targeted by major companies and brands.

Furthermore, some sports do not pay their athletes as lucratively as you may think. Of course, the likes of soccer, football, basketball and boxing all pay their top athletes huge fees, but many of the athletes on show at the Olympics who compete in less watched sports which are not awash with cash do not always earn a great deal. As such, these athletes often rely on endorsement deals for a hefty chunk of their income.

http://www.thesportster.com/entertainment/15-athletes-who-made-more-money-off-endorsements-than-playing/?view=all

How much money is really involved?

Celebrity athlete endorsements Have Become a huge money making revenue for the companies That sponsor These athletes. In the year of 2015 alone, athletes Brought $ 917 million to the various companies That sponsor them. This has Become a much more prominent occurrence over the past few years. The amount of money was made That athlete endorsements from This Year, in 2015, Went up 24% from the previous year. Why Such a big jump? These companies do depend completely on Their athlete endorsements to bring in much of Their revenue? At the top of the list for the athlete Who Brings in the MOST money for His endorsers is Roger Federer. Roger Brought His companies Wilson, Nike, Rolex, Mercedes-Benz and Gillette $ 58 million in 2015. Much of This Money was made from His tweets About These companies, in Which I Makes the specific company I have is tweeting About $ 16 762 PER tweet. Will Roger and other high profile athletes be targeted by more and more companies in the coming year to endorse them too? Is it possible That These athletes endorsing May be up to 10 companies at a time in the near future?



http://opendorse.com/blog/highest-paid-athlete-endorsers/

Obsession and Business Strategy

Much of today's society Seems somewhat Obsessed with celebrity figures. They are curious to know what They are eating, wearing, breathing and How They Live Their everyday lives. It's a bit strange how we as a society place Often celebrity figures on a pedestal as we Tend to treat them much differently than the average person. Marketing companies Have Realized the Importance of celebrity figures and use it as a marketing tool for Their products aka endorsements. Certain corporations hire celebrities in hopes That the association with the celebrity, In This case the athletes, will Their Attract Consumers to purchase goods in hopes of being "One with the athlete." Normally celebrity advertising is used for Achieving attention and higher sales. The goal of These corporations That is the message celebrities will deliver a Certain appeal and attention to Consumers. These do not come cheap to These corporations as They Have to pay hefty fees in hopes of Maximizing Their returns. What do you think about this idea? Do you agree or disagree with this strategy ? 




http://www.brandingstrategyinsider.com/endorsements