Despite his stunning $3 billion net worth, NBA star Michael Jordan has dropped out of the list of the 1,000 richest billionaires. He was added to the exclusive list in October after selling his majority ownership in the Charlotte Hornets, a professional basketball franchise, for $3 billion.
According to Forbes, this increased his net worth to $3 billion, making him the richest basketball player of all time. Jordan’s controlling ownership in the Charlotte Hornets was sold to a group managed by Gabe Plotkin and Rick Schnal.
Forbes’ Real-Time billionaires list now ranks him at 1023 with a net worth of $3 billion after being ranked at 982 on October 5. It is unclear what accounted for the drop in ranking but it highlights the dynamics of wealth and wealth accumulation.
Jordan, after retiring from the NBA, pursued entrepreneurship and became one of the world’s few Black millionaires. His paycheck from Nike, his main financial and marketing backer, accounts for a sizable portion of his fortune.
Indeed, Nike’s partnership with Jordan has not only made him a billionaire but also a cultural icon. According to Forbes, it is the largest athlete endorsement agreement in history, but it is also perhaps the best value because Jordan helped Nike go from a relatively unknown brand to one of the most valued in the world today.
According to Forbes, Nike initially offered Jordan a basic salary of $500,000 per year, which was treble the average NBA sneaker contract. The initial Air Jordan sneaker was an instant success, selling $100 million in the first year. As the Jordan brand grew in popularity, so did his salary.
Jordan reportedly received $130 million from Nike in 2020, which Forbes thinks was four times more than LeBron James earned. Among active NBA players, James presently has the largest shoe contract.
Jordan’s other sources of income included an interest in the Charlotte Hornets, a professional basketball franchise in Charlotte, North Carolina, and a tiny ownership in DraftKings.