Helena Frye
Nike's first steps towards becoming a global brand began with its association with basketball. In 1984, Nike, then known primarily as a running shoe company, wanted to expand into the basketball market. They signed a deal with NBA rookie Michael Jordan, which would change the way brands approached celebrity endorsements. Jordan's signature shoe, the Air Jordan, became a massive success, with Nike making $70 million in sales within the first two months of its release. The Air Jordan 1 is now considered the most influential sneaker of all time. The success of the Air Jordan brand helped Nike grow into the world's largest athletic apparel company and established its reputation for high-quality products.
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Signing Michael Jordan
In 1984, Nike signed a five-year, $2.5 million contract with NBA rookie Michael Jordan to promote the Air Jordan, a black-and-red basketball shoe that initially sold for $65 a pair. This deal was a gamble for Nike, which spent its entire marketing budget on the contract. The risk paid off, as the partnership transformed the company into the world's largest athletic apparel company and established Jordan as a global and cultural phenomenon.
The Air Jordan I, released in 1985, defied the NBA's prevalent white footwear policy, resulting in a $5,000 fine per game. Nike embraced the controversy, choosing to pay the fines and creating ad campaigns around the ban, such as "The NBA can't stop you from wearing them." This marketing strategy generated substantial publicity for the brand, with the shoes selling out at 50,000 pairs and generating more than $150 million in sales within the first two months.
The success of the Air Jordan I challenged traditional norms and changed the athletic footwear industry. It became a symbol of individuality and rebellion, coinciding with the rise of hip-hop artists in the 1980s. The shoe's popularity led to the creation of the unique Jordan Brand within Nike, which has continued to thrive and expand into new markets and categories.
The partnership with Michael Jordan revolutionized the sneaker industry and set a new precedent for brands signing athletes and celebrities to marketing deals. It demonstrated the power of leveraging influential figures to create exclusive, highly sought-after products that drive demand and maintain brand desirability. The Jordan Brand has brought significant revenue to Nike, with Michael Jordan himself earning substantial royalties and reaching billionaire status in 2014.
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Air Jordan 1
In 1984, Nike spent its entire marketing budget to sign NBA rookie Michael Jordan to promote the Air Jordan 1, a $65 black-and-red basketball shoe (equal to $192 in 2023 dollars). The Air Jordan 1 was the first shoe to be worn in the NBA with multiple colorways, and the original black and red colorway was banned by the NBA for violating the league's uniform policy, with a $5000 fine threatened each time Jordan wore them. Nike embraced the ban and the controversy surrounding the shoes, paying the fines on Jordan's behalf and creating ad campaigns around the ban, saying, "The NBA can't stop you from wearing them." Within the first two months of the shoe's release, Nike sold $70 million worth of Air Jordans. By the end of 1985, the company reported revenue in excess of $100 million.
The popularity of the Air Jordan 1 coincided with the rise of hip-hop artists in the 1980s, who were known for their music and their clothing. With a deep bench of classic sneakers and its broad newer offerings and collaborations with athletes and designers, Nike was able to expand its reach. The success of the Air Jordan 1 helped to cement Nike's status with one foot in the serious sports world and another that spoke to the non-athlete, challenging the status quo.
The Air Jordan 1 is still a best-seller for Nike, with the shoe available in a range of colors and styles for men, women, and children. The shoe continues to be a cash cow for Nike, netting the company billions of dollars more than 20 years after Jordan retired from basketball.
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The NBA ban
In 1984, Nike spent its entire marketing budget to sign NBA rookie Michael Jordan, in an attempt to boost its basketball shoe division. Jordan signed a five-year, $2.5 million contract to promote the Air Jordan, a black-and-red basketball shoe that initially sold for $65 a pair.
The Jordan brand evolved into a trademark beyond basketball and became a fashion statement in pop culture. Sneakers went from an athletic necessity to iconic casual wear. The popularity of Air Jordans coincided with the rise of hip-hop artists in the 1980s, who were known for their music and their clothing. The success of using controversy and creative marketing helped to cement Nike's status in the sports world and beyond.
The Nike/Michael Jordan contract changed how brands sign athletes and celebrities to marketing deals, as well as how they market themselves. Jordan makes around $255 million per year from his Nike endorsements, and Air Jordans continue to be a cash cow for the company, netting billions of dollars more than 20 years after Jordan retired from basketball.
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Be Like Mike
In 1984, Nike spent its entire marketing budget to sign NBA rookie Michael Jordan, in an attempt to boost its basketball shoe division. Jordan signed a five-year, $2.5 million contract to promote the Air Jordan, a black-and-red basketball shoe that initially sold for $65 a pair.
The Nike/Michael Jordan contract changed how brands sign athletes and celebrities to marketing deals, as well as how they market themselves. The NBA banned Jordan's shoes and issued a $5,000 fine each time he wore them. Nike paid the fines and created ad campaigns around the ban, saying, "The NBA can't stop you from wearing them." Within the first two months of the shoe's release, Nike sold $70 million worth of Air Jordans.
The "Be Like Mike" slogan became well-known in the '90s. Consumers believed that buying Jordan's shoes could improve their game. The company developed a reputation for releasing high-quality products and was able to raise sneaker prices. The popularity of Air Jordans coincided with the rise of hip-hop artists in the 1980s, who were known for their music and clothing.
Jordan's influence expanded beyond basketball and into sports marketing, athlete endorsement deals, fashion, popular culture, and the rise of sneaker culture. Jordan has had a symbiotic relationship with Nike, and together they grew into two of the most popular sports brands in the world. Jordan's likeness crossed over to brands such as Hanes, Coca-Cola, Wheaties, Gatorade, and McDonald's, increasing his marketability.
Nike has continued to build partnerships with the biggest names in basketball. LeBron James was given the slogan "We Are All Witnesses" when he signed with Nike. Similar to Air Jordan, James' brand became massively popular. Some athletes have had signature shoes designed for them, including Kobe Bryant, Jason Kidd, Vince Carter, Kevin Durant, Giannis Antetokounmpo, Jayson Tatum, Paul George, and Luka Dončić, among others.
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Nike's marketing strategy
In the 1980s, Nike recruited rookie basketball player Michael Jordan, signing him to a five-year, $2.5 million contract to promote the Air Jordan shoe. This partnership changed how brands sign athletes and celebrities to marketing deals and helped launch sneaker culture. Nike embraced the controversy surrounding the NBA's ban on Jordan's shoes, paying the $5000 fines for him and creating ad campaigns around the ban. This strategy paid off, with Nike selling $70 million worth of Air Jordans in the first two months. The popularity of Air Jordans also coincided with the rise of hip-hop artists in the 1980s, further cementing their cultural significance.
Nike has continued to build partnerships with the biggest names in basketball, such as LeBron James, Kobe Bryant, and more recently, Giannis Antetokounmpo and Luka Dončić. In 2015, Nike signed an 8-year deal with the NBA to become the official uniform supplier, taking over from Adidas. The deal required all franchise team members to wear jerseys and shorts with the Swoosh logo.
Nike's innovative product development, emotion-based messaging, and heavy investment in advertising have solidified its position as the world's largest sportswear brand, with more than double the annual revenue of its closest competitor, Adidas.
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Frequently asked questions
Nike gained brand exposure through men's basketball by signing NBA rookie Michael Jordan in 1984. Jordan signed a five-year, $2.5 million contract to promote the Air Jordan, a black-and-red basketball shoe. The partnership transformed Nike into the world's largest athletic apparel company and Jordan into a global and cultural phenomenon.
The Nike/Michael Jordan contract changed the way brands sign celebrities to marketing deals by demonstrating the power of athletes as endorsers of a product. After Nike's success with Jordan, more brands shifted their marketing focus to individual athletes, not teams.
The Air Jordan 1 is considered the most influential sneaker of all time. Within the first two months of its release, Nike sold $70 million worth of Air Jordans. By the end of 1985, the firm reported revenue in excess of $100 million.
Nike leveraged the success of the Air Jordan brand by creating ad campaigns that embraced controversy. The company also paid fines on Jordan's behalf when the NBA banned his shoes, creating ads that said, "The NBA can't stop you from wearing them."
