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| Jordan's https://mail.chicagofanatics.com/viewtopic.php?f=91&t=85406 |
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| Author: | Nas [ Thu Feb 27, 2014 4:04 pm ] |
| Post subject: | Jordan's |
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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| Author: | Hawg Ass [ Thu Feb 27, 2014 4:05 pm ] |
| Post subject: | Re: Jordan's |
He might not be able to feed those twins on that 90 million, poor fellow. |
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| Author: | denisdman [ Thu Feb 27, 2014 4:06 pm ] |
| Post subject: | Re: Jordan's |
Nas wrote: 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? 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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| Author: | Dr. Kenneth Noisewater [ Thu Feb 27, 2014 4:09 pm ] |
| Post subject: | Re: Jordan's |
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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| Author: | Don Tiny [ Thu Feb 27, 2014 4:09 pm ] |
| Post subject: | Re: Jordan's |
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| Author: | sinicalypse [ Thu Feb 27, 2014 4:11 pm ] |
| Post subject: | Re: Jordan's |
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| Author: | denisdman [ Thu Feb 27, 2014 4:11 pm ] |
| Post subject: | Re: Jordan's |
Dr. Kenneth Noisewater wrote: 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. 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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| Author: | denisdman [ Thu Feb 27, 2014 4:14 pm ] |
| Post subject: | Re: Jordan's |
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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| Author: | Nas [ Thu Feb 27, 2014 4:14 pm ] |
| Post subject: | Re: Jordan's |
Dr. Kenneth Noisewater wrote: 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. That's my thinking as well. Production cost for his shoe can't be that high. |
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| Author: | Dr. Kenneth Noisewater [ Thu Feb 27, 2014 4:17 pm ] |
| Post subject: | Re: Jordan's |
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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| Author: | Nas [ Thu Feb 27, 2014 4:20 pm ] |
| Post subject: | Re: Jordan's |
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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| Author: | Dr. Kenneth Noisewater [ Thu Feb 27, 2014 4:21 pm ] |
| Post subject: | Re: Jordan's |
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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| Author: | Nas [ Thu Feb 27, 2014 4:23 pm ] |
| Post subject: | Re: Jordan's |
I believe those numbers are just for the shoes. |
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| Author: | Nas [ Thu Feb 27, 2014 4:26 pm ] |
| Post subject: | Re: Jordan's |
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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| Author: | Michael Jeffrey Jordan [ Thu Feb 27, 2014 4:30 pm ] |
| Post subject: | Re: Jordan's |
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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| Author: | Bagels [ Thu Feb 27, 2014 4:33 pm ] |
| Post subject: | Re: Jordan's |
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| Author: | Nas [ Thu Feb 27, 2014 4:33 pm ] |
| Post subject: | Re: Jordan's |
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| Author: | bigfan [ Thu Feb 27, 2014 4:44 pm ] |
| Post subject: | Re: Jordan's |
Nas wrote: 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. 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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| Author: | denisdman [ Thu Feb 27, 2014 4:53 pm ] |
| Post subject: | Re: Jordan's |
Nas/Ken, I found this (1995 cost): http://www-personal.umich.edu/~lormand/poli/nike/nike101-8.htm |
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| Author: | Dr. Kenneth Noisewater [ Thu Feb 27, 2014 4:53 pm ] |
| Post subject: | Re: Jordan's |
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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| Author: | pittmike [ Thu Feb 27, 2014 6:28 pm ] |
| Post subject: | Re: Jordan's |
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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| Author: | T-Bone [ Fri Feb 28, 2014 8:09 am ] |
| Post subject: | Re: Jordan's |
Ground Pippen
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| Author: | Mr. Hernandez [ Fri Feb 28, 2014 6:17 pm ] |
| Post subject: | Re: Jordan's |
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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| Author: | Nas [ Fri Feb 28, 2014 6:20 pm ] |
| Post subject: | Re: Jordan's |
Apparently Nike is saying they are giving them to the stores for about $100 |
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