I am curious and lazy when it comes to math. What’s 5% of $19 Billion?

Translate the heading of my post and you’ll discover that past fractions I suck at math.

Question: Do you think that this a good deal for MJ?


Jordan Brand Earned Nike $19B
Jordan Brand Earned Nike $19B Of Which Michael Jordan Only Gets 5%


https://blackamericaweb.com/2023/02/01/how-much-do-michael-jordan-make-nike/

Assuming units = billions of dollars:

19 * 0.05 = 0.95 billion dollars

or

5% = 1/20

so 19 * 1/20 = 19/20 = .95 billion dollars.

In regular dollars:
$950,000

Ktron wrote:Translate the heading of my post and you’ll discover that past fractions I suck at math.

Question: Do you think that this a good deal for MJ?


Jordan Brand Earned Nike $19B
Jordan Brand Earned Nike $19B Of Which Michael Jordan Only Gets 5%


https://blackamericaweb.com/2023/02/01/how-much-do-michael-jordan-make-nike/

Based on the numbers MJ earned $950,000,000.  According to the article that would be what he made over 5 years ("According to The Sports Rush, the Jordan Brand has earned over $19 billion dollars in revenue over the past five years")

That is a lot of lettuce for allowing Nike to use  your name and symbol (as a brand)

MJ has no direct costs associated with manufacturing and distribution or advertisement.  So he made close to a billion dollars.   Of course that is not take home given the taxes that he would be required to fork over to the government.  Getting paid off of revenue is better than getting paid off of margin.

The question about fairness in what MJ derives can only be assessed if there are viable comparisons.

MJ could ask for more when his current arrangement is eligible for renegotiations.

gyso wrote:Assuming units = billions of dollars:

19 * 0.05 = 0.95 billion dollars

or

5% = 1/20

so 19 * 1/20 = 19/20 = .95 billion dollars.

In regular dollars:
$950,000

I gotta add three more zeroes. (tx, dboss)  

$950,000,000

gyso wrote:

gyso wrote:Assuming units = billions of dollars:

19 * 0.05 = 0.95 billion dollars

or

5% = 1/20

so 19 * 1/20 = 19/20 = .95 billion dollars.

In regular dollars:
$950,000

I gotta add three more zeroes. (tx, dboss)  

$950,000,000

gyso

I will gladly take the money with or without the extra zeros!

“A billion here, a billion there and pretty soon you’re talking about real money.”

Everett Dirkson I believe.

That comes out to more than i thought.
Would they have made 19B without his name attached? Naw.
Time to renegotiate…:>)

.95B net - no operating expenses. MJ only has to pay the taxes on that. He's doing more than ok.

bobc33 wrote:“A billion here, a billion there and pretty soon you’re talking about real money.”

Everett Dirkson I believe.

BobC,

Correct.  It was Senator Everett McKinley Dirksen (R-IL) that quote is attributed to specifically, I believe, to the defense budget.


Bob


.

Considering Nike bore all the costs of manufacturing, administration and overhead, and marketing while MJ only had to invest a little bit of his time filming the commercials and posing for photos for posters and billboards, I'd say MJ did ok.

And let's be fair here.  With Bird and Magic aging and facing retirement MJ became the face of the league.  Why shouldn't the undisputed face of a major league sport get rich from his contributions? The NBA became synonymous with "Be Like Mike". No MJ, no Kobe since it's clear that Kobe modeled his game after MJ's and Kobe was the face of the NBA for a decade and a half.  No Kobe, no Tatum.  Kids need role models.  Not every kid is athletic, so MJ and Kobe might not mean anything in particular to them, but even casual athletes like to have untouchable heroes.  Other than Kobe's one well-publicized peccadillo both of those men were good role models for young'uns.


Bob


.

I’m pretty sure that MJ was additionally compensated for his appearances and commercials promoting the brand.
The $9.5 I believe is separate.
I think he should’ve gotten more but he didn’t and I won’t cry a river or better yet a rain drop over it. He knows his business better than I do.

As for as role models, I wouldn’t want any of my children to look to athletes for role models. In a perfect world parents should be looked to as role models.
Athletic wise, how does a yungun decipher who’s a good person and who is not?
Some would make great models but they are few and far between.
Parents 1st..

Amen, Ktron, AMEN! My wife teaches the future of America (9th Grade math) and if I've heard it a thousand times, I've heard it once, she says the EXACT same thing. I call those kids my Social Security check!

She's still looking for a lot of parents as role models. It's across the board. No distinction. They are few and far between, always wanting to be their child's friend and not their parent. But hey, they get a trophy for showing up. That's important.

db

Not a bad deal for MJ. Seems like his income and net worth continues to grow. this is one deal and does not include other endorsements or income. He's set himself up well. Other professional athletes should look at his business model.

From what I understand, the Jordan brand was born out of kids going to Nike stores and other Athletic stores asking for “those shoes that Jordan wears”. At that time there was no Jordan Brand. From there Nike approached Jordan about creating a brand with his name attached.
I think 5% is a bit short but its still a lot of money to all of us. (I guess).
Apparently he’s happy with so there it is.

There's more but here’s a few others that have done pretty well for themselves:

Jamal Mashburn has a big stake in over 100 franchises that include

34 Outback Restaurants
37 Papa John’s
4 Dunkin Donuts
Several Toyota and Lexus car dealerships
And Waste management company

Former Buck Junior Bridgeman’s portfolio (some of which he’s since sold) includes:

120 Chili’s restaurants
400 Wendy’s restaurants
Coca Cola Bottler company


Shaquille O’Neal:

40-24 hour fitness gyms
150 Car washes

He is also the 2nd largest shareholder of Authentic Brands
(Subsidiaries)
Forever 21, Barneys New York, JC Penny and Reebok.

His endorsements alone has earned him over $200 million.

Then there is of course Magic Johnson….and others. Great read here.

https://www.franchisewire.com/how-magic-johnson-fosters-black-entrepreneurship/

Ktron,

Another math law. The law of large numbers. 5% of a very large number is still a very large number!!

db

dbrown4 wrote:Ktron,

Another math law.  The law of large numbers.  5% of a very large number is still a very large number!!

db

We all would step up to the plate for that kind of cheese! :>)