$260 million. That’s how much Michael Jordan pocketed from Nike last year – just in royalties. But with Nike’s revenue expected to plunge by this quarter, its worst drop in five years, Jordan Brand’s financial dominance might face its biggest test yet. As downloads of Nike’s apps decline and foot traffic to stores shrinks, one question looms large: will the man who helped build Nike into a powerhouse see his earnings take a hit?
For decades, nostalgia has fueled Jordan Brand’s success. But even nostalgia isn’t enough to stop Nike from facing hard times. As per KicksFinder, the brand is reportedly experiencing its biggest revenue drop in five years. And the numbers tell the full story. Projections indicate that Nike will experience an 11.5% revenue drop, marking its steepest decline in half a decade.
Nike previously acknowledged a lack of innovation in its recent collections. In April 2024, the company initiated a multi-year innovation cycle, introducing a new product lineup and involving athletes in the co-creation process. Notable projects include the development of the Nike Air cushioning to prepare for last year’s Summer Olympics.
A post on X suggests a 35% drop in downloads of Nike’s mobile apps compared to last year. This could be concerning, as it indicates reduced consumer interest in online shopping through Nike’s platforms. Another piece of bad news highlighted in the post is an 11% decrease in foot traffic at Nike stores, meaning fewer consumers are visiting physical retail locations.
The post read, “Nike is expected to post a revenue decline of 11.5% to $11.01 billion in the third quarter, according to data compiled by LSEG. It would be the steepest fall since the 38% decline Nike reported in fourth quarter of fiscal 2020 during the pandemic.”
BREAKING NEWS: Nike reports worst revenue fall in 5 years due to stagnant demand
– Downloads of Nike mobile apps for the quarter were down 35% from a year earlier
– Foot traffic at Nike stores was down 11%
“Nike is expected to post a revenue decline of 11.5% to $11.01… pic.twitter.com/vwrd3OWg3h
— KicksFinder (@KicksFinder) March 20, 2025
This could result in a decline in Michael Jordan’s annual earnings from the brand. As per Forbes, the Chicago Bulls legend’s latest royalty check from the brand was nearly $260 million. While Nike’s overall revenue has declined, the Jordan Brand remains a strong performer, bringing in $7 billion last year according to Nike’s 2024 Fourth Quarter Fiscal Report. It accounted for approximately 14% of Nike’s total revenue of $51.4 billion. This represents a 6% increase from the previous year. Despite Nike’s shortcomings, the Jordan brand remains a staple in mainstream culture.
Fans criticised Nike’s marketing campaign
To celebrate the 40-year anniversary of the Air Jordan 1, the brand launched the Air Jordan 1 High ’85 “Banned.” This limited-edition collection with 10,000 pieces was made available in only 23 select stores across the United States. Many fans argued that most sneaker lovers wouldn’t get the chance to buy these sneakers.
Others debated that the shoes were a bit too pricey. While some even compared the limited edition to other versions of the brand. “Sh*t still not worth $250 for a Jordan 1,” a netizen wrote. The design of the ’85 “Banned” closely resembles the original version released 40 years ago.
With inflation rising and spending habits shifting, Nike isn’t the only brand feeling the pressure. Could sneaker culture itself be changing?
While the release sparked nostalgia, it failed to satisfy some fans. A netizen wrote, “I just don’t see the logic behind spending SO MUCH on marketing a product only to limit its quantity and not be able to recoup what was spent on said marketing.” The brand went above and beyond to promote the sneakers, starting last Christmas by placing black “banned” stickers on various Air Jordan versions to remind fans of the story behind Jordan’s red-and-black colorway getting banned. However, considering the recent updates, did the campaign really help the brand?
Nike’s golden goose, the Jordan Brand, has long defied economic downturns, but can it withstand this storm? A declining consumer base, strategic missteps, and a lack of fresh innovation are testing its resilience. If Nike fails to course-correct, Jordan’s royalty checks may shrink. But more importantly, the cultural dominance of Air Jordans could face its biggest challenge yet
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