We all know that Michael Jordan is a very, very, very rich man. In addition to being regarded by many to be the greatest basketball player of all time, Michael is also the first black billionaire athlete. Most of Michael Jordan's current $2.2 billion net worth is derived thanks to his majority ownership stake in the Charlotte Hornets. The other major source of perpetual wealth and income for Jordan is his deal with Nike.
In 2022, the Jordan brand crossed the $5 billion revenue mark for the first time. As a result, Jordan was paid approximately $200 million in royalties from his Jordan brand sales.
While those numbers seem more than solid, wait until you hear how much Jordan's yearly royalty is projected to be by the year 2030…
Michael Jordan's 2030 Royalty
Nike generated $46 billion in total revenue in 2022. If you recall from a moment ago, the Jordan brand generated $5 billion in sales for Nike. So in other words, Jordan brand generated 10% of Nike's overall revenue last year. And that equated to $200 million in earnings for Michael, which implies a roughly 4% royalty rate.
These numbers are consistent with Michael and Nike's historical performance. For example, in 2015, Nike generated $30 billion in total revenue, with $2.6 billion coming from the Jordan brand. At that point Michael was earning around $100 million in royalties every year from Nike.
Between 2010 and 2020, Nike's revenue roughly doubled.
So let's say by 2030 Nike's revenue will be $90 billion.
If we make the general assumption that the Jordan brand continues to generate around 10% of Nike's overall revenue, that would mean the Jordan brand would be generating around $9 billion for Nike by 2030.
If we assume Michael continues to make a 4% royalty, in 2030, his annual royalty payment will be…
For perspective, during Michael's entire 15-year NBA career, he earned a total of $93 million in salary. So if this scenario proves out, by 2030 Michael will be earning nearly 4X his entire NBA career earnings every year from Nike.
Oh and in case you were wondering, despite being a massive source of revenue for Nike, Michael actually has zero influence over which athletes wear his shoes. There is actually an NBA rule that prevents Michael from being involved in negotiations between Nike and athletes. The fear is that without the rule, Michael could use his ability to offer massive shoe deals as a way to entice players into joining the Hornets.
How Rich Will Michael Be In 2023?
All this makes you wonder…. what how much will Michael Jordan be worth by the year 2030 if things fall in the right place???
To figure out Jordan's projected 2030 net worth, we'll approach each asset starting with the Hornets. Based on how other NBA teams have appreciated in value over the previous 5 years, it's reasonably to project that the value of the Hornets rises to $3 billion by the year 2030. That would make Jordan's stake in the team worth around $2 billion.
Let's assume Michael earns $1.5 billion in Nike royalties between now and 2030. He'll keep a little over half that much after taxes. That could add an additional $750 million in value.
Finally, add in his liquid assets and real estate investments, which will likely appreciate in value over the course of five years; let's say those grow to $600 million in value.
When you add it all up ($2b + $750m + 600m), and by 2020 it would not be crazy for Michael Jordan's net worth to be around…
And before you go, here are a five crazy facts about Michael Jordan's wealth and money:
- #1) He once turned down an $80 million offer to endorse a headphone company… because he apparently doesn't wear headphones!
- #2) Thanks to a lawsuit, we know that between 2002 and 2012, Nike paid Michael $480 million.
- #3) His first Nike contract paid $500k per year for 5 years. It was the largest shoe contract ever at that time and Michael had never work Nike shoes in his life before signing the deal.
- #4) Michael paid his ex-wife $170 million in cash when they divorced.
- #5) Michael paid $170 million for his majority stake in the Hornets.