How Did Michael Jordan Became the First Billionaire in Sports History? Explained.

Michael Jordan, widely regarded as the greatest athlete of all time, was a pioneer in bringing NBA basketball to a global audience. His unwavering pursuit of excellence inspired a generation of players, dashed the aspirations of everybody who stood in his way, and earned him six rings. Jordan is a successful businessman, in addition to being a fantastic basketball player.

Jordan is the owner of the Charlotte Hornets and has collaboration arrangements with a variety of firms and brands, with an estimated net worth of $2.2 billion. He is a savvy financier as well as a dominant NBA player. With a net worth of around 2.1 billion dollars, he has become one of the wealthiest sportspersons on the globe, thanks to his investments and sound financial management. But how did that make Jordan a billionaire? Let’s find out.

Michael Jordan
Mar 11, 2021; Charlotte, North Carolina, USA; Charlotte Hornets owner Michael Jordan watches his team against the Detroit Pistons during the second half at Spectrum Center. Mandatory Credit: Jim Dedmon-USA TODAY Sports

Michael Jordan’s salary during his NBA career

Jordan earned a total of $94 million before taxes across 13 seasons with the Chicago Bulls and two years with the Washington Wizards, including the $4 million the Bulls paid him to sit out the 1993-94 NBA season to play minor league baseball. Jordan’s first deal, which he signed in 1984, earned him $2.8 million over four years. Jordan returned to the NBA in 2001 with the Washington Wizards, where he was a part-owner and president of basketball operations, dedicating his $1 million yearly playing pay to relief efforts for 9/11 victims.

Endorsement Deals

Michael Jordan’s present money is largely derived from endorsements. He’s made $1.7 billion (pre-tax) off the court from companies like Nike, Coca-Cola, McDonald’s, Wheaties, Chevrolet, and others, and he’s still working with Nike, Hanes, Gatorade, and Upper Deck. Jordan’s primary source of revenue has always been Nike.

In 1984, he secured a five-year Nike agreement earning $500,000 per year (about $1.2 million in today’s currencies), plus royalties. According to Forbes, his salary was $130 million last year (included in the sum above), four times that of LeBron James, who has the NBA’s second-largest shoe contract.

Furthermore, with the signing of star player Lionel Messi to the French club Paris Saint-Germain in 2021, Michael Jordan is said to have earned $6 million in jersey sales. It’s worth noting that the Jordan Brand produces the football uniforms for Paris Saint-Germain.

Businesses and Investments

Michael Jordan is recognized for investing in tech firms, such as the Gigster initiative in Silicon Valley. This agency serves as a link between managers, designers, freelance software developers, and businesses. Jordan is also a part-owner of the Miami Marlins baseball team. The AMA Pro Road Racing motorcycle team, the Nissan Auto Show in Durham, and the Michael Jordan’s Steakhouse restaurant chain all contribute to the fund.

Jordan also purchased a minority ownership in the Charlotte Bobcats, who were renamed the Hornets after Jordan’s purchase. In a $175 million acquisition that was partly funded with debt, he acquired majority control of the team in 2010. He subsequently increased his shareholding to 90%.

Apart from his huge investments in the Hornets and Jordan Brand, MJ also teamed up with Jeanie Buss of the Los Angeles Lakers, Wes Edens of the Milwaukee Bucks, and Wyc Grousbeck of the Boston Celtics to develop Cincoro, a super-premium tequila brand, last year. Extra Aejeo, the most costly bottle in the range, costs $1,600.