Jordan empire to continue
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January 12, 1999: 3:39 p.m. ET
Michael Jordan's marketing power will last into retirement, insiders say
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NEW YORK (CNNfn) - Perhaps no other player has brought to basketball such flair and depth of talent, nor inspired such adoration from his fans.
And perhaps no player ever will again.
But as far as Michael Jordan's marketing power is concerned, those following his career say they expect the 35-year-old superstar to keep the slam dunks coming long after he announces his retirement, which is expected Wednesday.
"Michael Jordan at this point has really almost reached a God-like status," said Bill Doyle, vice president of Performance Research in Newport, R.I., which tracks corporate sponsorship of sports teams and players. "He will continue to be a spokesperson for companies for years to come. The fact that he isn't playing basketball isn't really an issue."
Doyle likened Jordan to pro-golf legend Arnold Palmer, who has retreated from the game in recent years but maintains his celebrity status.
"What will probably happen over the long term is the products and services that Jordan represents will be less and less performance oriented and more product oriented," he said, citing the MCI WorldCom commercials Jordan already does as an example.
Jordan retired once before -- to pursue a career in minor league baseball in 1993. He returned to the court in 1995 after a less-than-stellar stint with the Birmingham Barons, and led the Chicago Bulls to their sixth National Basketball Association championship.
This go-round, however, NBA insiders don't expect MJ to return. Moreover, they say, it comes at an inopportune time for the league, which is scrambling to salvage the last few games of the season after resolving a six-month lock out.
Beginning the season without its most closely watched player could be a tough blow for the owners, who now need to win back the fans they lost this year to the college teams.
Greg Ambrosius, editor of Sports Cards Magazine, said Jordan's second retirement will deal a devastating blow to the trading-card industry as well.
"Michael Jordan IS the basketball-card market," he said. "Most people in the card industry go after rookie cards, but he's transcended all that. People go after anything he's on. He's beyond anything in this industry."
Ambrosius said Jordan's 19986/87 rookie year Fleer brand trading card sells today for around $1200 but could climb several hundred dollars more in the next few months. The card's value has climbed from $800 since his return from retirement.
But once the excitement over Jordan's retirement wears off, he said, the value of that coveted card could plummet - as it did after his first retirement.
"There'll be a spike at first in the price of the card, but in three months from now you'll start to see softness in that card," Ambrosius said.
Same goes for Jordan's worn athletic wear and autographed basketballs.
"He's the No. 1 seller of all athletes," he said. "His retirement just kind of hurts everybody because he spurs sales of merchandise."
Endorsements
As he shattered point-per-game records, Jordan also shattered the ceiling on marketing deals for sports players.
Those following the industry estimate Nike alone coughs up between $15 million and $20 million a year. (He makes another $40 million or so from his other sponsors, including Hanes, MCI WorldCom and Ball Park Franks.) They also say Jordan will remain on Nike's payroll for as long as he wants.
"That relationship (with Nike) is guaranteed to continue," said Jim Andrews, editor of IEG Endorsement Insider, a trade publication following athlete and celebrity marketing deals. "They created the Jordan brand line of shoes and apparel, a whole company for which he is chief executive officer. That relationship is guaranteed."
Wall Street's relationship with Nike, however, isn't so stable.
Nike (NKE) shares slipped more than 4 percent on Tuesday after news of Jordan's pending retirement leaked out. Shares of the company fell 2 to 42-3/8 on the New York Stock Exchange.
Andrews added he believes Jordan will continue to endorse products that aren't related to his status as a basketball player.
"I don't think there's really going to be a lot of fallout here," he said. "I would imagine he will continue to be a leading endorser of a lot of different products and services, with the exception of say Gatorade, which is tied to his performance on the court. But just because he stops being Michael Jordan the basketball player doesn't mean he stops being Michael Jordan the sports star."
If Jordan needs a few extra bucks after walking away from the game, some say his retirement also will boost sales of his latest autobiography, "For the Love of the Game."
Jordan's second retirement, however, isn't expected to pose a significant setback for the sporting-goods industry, which already is struggling to regain its footing from the six-month NBA lockout.
So far this year, a handful of major sporting-goods retailers have either warned of weak fourth-quarter earnings, declared bankruptcy or faced increased pressure from shareholders.
Most, including Hibbett Sporting Goods Inc. (HIBB), blamed warmer winter weather and the NBA lockout for their troubles.
But athletic apparel analysts say Jordan's basketball jersey and trading cards will retain, if not increase, their value once his retirement is made official.
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