Nike sold $2.35B in his shoe last year and he made $90M from it. That seems low. Shouldn't he have a better deal than that for his own signature shoe?

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He might not be able to feed those twins on that 90 million, poor fellow.

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2018
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You want kids to pay $500 for a pair? That $2.35B is the revenues, not the profit. The question is, how much did Nike earn off the shoes and what portion went to Michael? I looked it up, Nike has a pretax margin of 11%, so on average, they would make $262M before taxes on $2.35B in sales. Seems fair to me.

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Hawaii (fuck) You

That margin seems low. I know they have huge promotional expenses but that still seems pretty low for a shoe that probably costs them $5 to make.

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Power is always in the hands of the masses of men. What oppresses the masses is their own ignorance, their own short-sighted selfishness.
- Henry George

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Gross margins are 41%, although that is for all their products. The SG&A expenses are going to be all that promotional cost, like paying Jordan $90M, which is 4% of the revenues right there.

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Hawaii (fuck) You

I just caught it in their filings and have never seen this before....they call marketing expenses, "demand creation expenses". I have read thousands of public filings and have never seen that term before. It is 10.7% of their revenues defined as follows:


Demand creation consists of advertising and promotion expenses, including costs of endorsement contracts.

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Hawaii (fuck) You

That's my thinking as well. Production cost for his shoe can't be that high.

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41% still seems low to me. These things are being made overseas, aren't they. I suppose it costs some dough to throw them on a boat and get over here but 59% COGS seems really high for something that would have almost no labor costs. Maybe they have huge depreciation expenses.

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It seems like Nike should net about $1.5B after all of their cost. Not much marketing goes into a pair of Jordan's. You could announce it 24hrs before they come out and the would sell out in 2 mins. IIRC over half the shoes sold in America are Jordan's. That's a huge chunk of a multi billion dollar market.

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It's not just the shoes, is it?

Gotta be the shoes, Mike.

Does the $2.35B include all the athletic wear with his little logo on it? That's got to be a couple hundo million more.

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I believe those numbers are just for the shoes.

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Rose shoes grossed $40M last year and LeBron's shoes grossed $300M. Don't they have like a 6 year deal for $300M? That means they are making more off of their shoes than Jordan.

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Quite financially, I do well. In addition to my wildly successful Air Jordans, I have a line of lesser known products commonly known as Ground Pippen that has sold, as one might assume, quite poorly.

Certainly it's attributable to the Ground Pippen theme song -

Sometimes I dream,
Scotty is me,
Quite naturally that's what he wants to be,

I dream he moves,
to Baton Rouge,
Take a hike,
You'll never be like Mike, never be, never be like Mike
Take a hike,
You'll never be like Mike, never be, never be like Mike

Buy Ground Pippen.

That's bad. YOU TELL HIM!! YOU TELL HIM I SAID IT!!

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If Lebrons and Roses make either of them $90.00 a year 20 years after they are done playing, then we can talk. While people will always acknowledge Lebrons ability, he just will never be THEMAN

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Nas/Ken, I found this (1995 cost):

http://www-personal.umich.edu/~lormand/poli/nike/nike101-8.htm

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Hawaii (fuck) You

That jingle always bothered me since the first time I heard it (the real one, not the Ground Pippen one).

Sometimes I dream,
that he is me,

Why would I ever dream that Michael was some bad, white rec-league player with a 9" vertical and a sweet jump shot from the University of Illinois?

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Don't forget how much more MJ makes on the clothing and what not Nike sells of him. Not just shoes.

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Elections have consequences.

Ground Pippen

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Flew too close to the sun on wings of pastrami

Retail price for retro Jordans is $170 msrp
His premier model which is at Jordan 28 retails for $225 i believe.

People line up for them and spend all day on twitter awaiting the link. They sell out in less than 10 secs online

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"You can kill the revolutionary, but you can't kill the revolution."

Apparently Nike is saying they are giving them to the stores for about $100

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