Nike faces financial struggles affecting Michael Jordan's brand

Nike is facing serious challenges as its sales decline in 2024. This situation could impact Michael Jordan, who has seen significant earnings through his long-standing partnership with the brand. Their collaboration began in 1984, and the original Air Jordan sneakers launched in 1985 made history. However, Nike is struggling with dropping revenues that threaten Jordan’s royalty income. A recent report highlights a slowdown in sales and a 35% decrease in app downloads. Third-quarter profits are also expected to drop notably, from $12.44 billion in 2023 to $11.01 billion in 2024. Additionally, Nike's recent marketing campaigns have faced backlash on social media due to their pricing and advertisement design. Despite these issues, the Jordan Brand itself remains strong. Recent reports indicate it continues to perform well, contributing 14% of Nike’s total revenue. Although some Jordan products have received criticism, the brand's overall stability may support Jordan's royalty earnings and maintain his cultural impact.