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Nike is synonymous to almost every sport and is highly preferred by some of the world's top athletes. Formerly known a Blue Ribbon Sports (BRS) and with a starting capital of roughly a thousand dollars, Nike did quite well in its early years, but not as dominating as Converse or Adidas back then. When Nike started in 16, it had to wait years for the right promotion strategy that will catch everyone's attention. And it had to wait years for the right endorser, Michael Jordan.
The right endorser
Nike was willing to gamble on Jordan, a gamble that meant paying Jordan $ 50,000 a year for 5 years, incentives and royalties (a percentage on sales, similar to a commission) on all Nike basketball related items. It was a hefty deal, not to mention a risky one because no one in the industry offered that kind of deal. There was also the fact that the people from Nike never knew how Jordan would perform in the NBA because they never saw him play.
The Right Promotion
Three games in to Jordan's rookie season, (184-185) the NBA did a huge favor for Nike. The league banned the Air Jordan shoe because it did not conform to the Chicago Bulls uniform. (back then, the shoes had to match the team uniform's colors) But Jordan kept wearing them and Nike was willing to pay a $ 5000 fine every game. It made the news, receiving all the media mileage it could get. The first commercial showed Michael Jordan's head, then came down slowly to his body and down to his feet. When the camera focused on his shoes, a big "X" was stamped on the screen and a voice-over said "banned".
But behind all of these, Michael Jordan never actually wanted to sign with Nike. Back then, Jordan was an Adidas fanatic. Adidas never did made an offer to Jordan. If Adidas did made an offer to Jordan, then the Jordan shoes that you might be wearing right now will have stripes on it instead of a swoosh.
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