Billionaires are not only tech giants, like Musk, Zuckerberg, or Bezos. A considerable number of athletes also have extremely “heavy” bank accounts. The hundred highest-paid athletes last year earned a record 6.2 billion dollars from salaries, prizes, and sponsorship contracts. The highest earners were footballer Cristiano Ronaldo – 260 million dollars and basketball player Stephen Curry – 154 million dollars. But still, one “retiree” surpassed them. Although we have not seen him under the hoop for 20 years, legendary NBA star Michael Jordan earned about 300 million dollars in the past twelve months. If we add this sum to what he has earned since the start of his career, way back in 1984, Jordan has solidified his total earnings at three billion dollars, or 4.15 billion dollars when adjusted for inflation. He also occupies the top of the list of the highest-paid athletes of all time. Right behind him is golfer Tiger Woods, who has earned 2.79 billion dollars in his career, adjusted for inflation. Ronaldo is third with 2.23 billion dollars, while fourth place in earnings is held by LeBron James with 1.88 billion dollars.
Revolutionary contract with Nike
At the time of Magic Johnson and Larry Bird, Nike was not at the top of sports brands. Adidas was the leader in revenue, and Converse was the number one choice of shoes that stars chose for the court. Nike, at that time far from today’s sports equipment giant, decided to give a chance to the then-young NBA star –Michael Jordan.
And when Nike signed a contract with Michael Jordan, probably the brand’s managers did not think that the Nike Air Jordan shoes would so quickly reach the top of popularity. Nike modestly estimated at the time that it would earn about three million dollars during that period. It turned out they had severely underestimated the potential – in just the first year of sales, revenue exploded to an incredible 123 million dollars. The contract, negotiated by David Falk, initially for five years, was worth 500.000 dollars per year and included a percentage from shoe sales. It was a contract three times bigger than all the contracts signed in the NBA at that time.
Jordan’s agent David Falk also “coined” the name “Air Jordan,” while then Nike’s creative director Peter Moore designed the iconic logo of the ball and wings.
After the incredible initial success, Nike offered Jordan something revolutionary for that time: a percentage from sales (5%) and the freedom to design his own shoe. Thus, a brand would actually be created that today dominates the market, and Michael Jordan would become the first athlete in history to earn over one billion dollars by collaborating with a brand.
To understand the scale of that success, it is enough to say that the brand needs only five hours in one day to earn three million dollars. In the last five years, it has brought almost 20 billion dollars in revenue to Nike.
Earnings from shoe sales
Nike reported that it earned seven billion dollars from these shoes last year, which is about six percent more than the previous year.
However, Jordan’s business influence does not stop with the shoes and this company, but for many years he has also successfully cooperated with brands such as: Gatorade, Five Star, Upper Deck, and 2K. Michael Jordan simply has a nose for recognizing potential in a business, and it is clear that he plays on the card of industry diversity. Thus, two years ago, he assessed that he should sell the majority stake in the NBA team Charlotte Hornets, while remaining a co-owner of the NASCAR team 23XI Racing. In addition, he invested money in Axiomatic (gaming), Cincoro tequila, DraftKings (sports betting), and Sportradar (sports analytics).
That earnings do not stop when the referee blows the final whistle on the field and the player hangs up his boots, was also shown by David Beckham – the biggest football star of his time. As a retired athlete, Beckham annually earns up to 50 million dollars. He knew that the Chinese were no less passionate football lovers, so immediately after the end of his active playing career, he signed several business contracts in China.
Beckham also earns in retirement
Beckham’s connection with Chinese football dates back to 2013, when he was appointed as the global ambassador of the Chinese Super League. His role at that time was to promote football in the country, attend matches, and cooperate with clubs in order to popularize the sport among young people.
Besides ambassadorial roles, Beckham showed enviable business ability through his company DRJB Holdings, which manages his brand and sponsorships. In 2022, he sold 55% of the stake in DRJB to the company Authentic Brands Group for 200 million pounds. That deal significantly increased the company’s revenues, which the following year reached 72.6 million pounds.
Last year, he became a global brand ambassador for AliExpress, an international e-commerce platform owned by the Chinese giant Alibaba. This move was part of the company’s strategy to strengthen its presence on the global market and compete with rivals like Temu and Shein. The partnership was presented alongside AliExpress’s sponsorship of UEFA Euro 2024, and Beckham’s football legacy was used to connect with fans through the “Score More” campaign during the tournament. In his career, he earned 1.61 billion dollars, adjusted for inflation.
Another star, but of American football, Tom Brady, earns a true fortune. One of the most famous quarterbacks in NFL history, he earned on average, including bonuses, 14.5 million dollars as a player, and later 21 million dollars.
Just like Beckham, Brady also had a lucrative business opportunity last year, becoming the leading NFL commentator for Fox Sports. A contract worth 375 million dollars was signed for ten years. However, as foreign media wrote, the new beginning in the new role was challenging when he faced criticism for his lack of experience in the commentary booth. Also, his minority ownership stake in the Las Vegas Raiders imposed certain restrictions, such as a ban on attending team preparatory meetings, which affected his preparation and game analysis.
Tom Brady among the 50 richest
Also, at the beginning of 2024, Brady announced the merger of his brands TB12 (focused on health and wellness) and Brady (sportswear line) with the Boston-based company NoBull, known for sports equipment. With this merger, a unique wellness company was formed, where Brady became the second-largest shareholder, right behind BodyArmor founder Mike Repole.
Brady was ranked 50th on the list of highest-paid athletes in 2023, with annual earnings of 45.2 million dollars. His ability to capitalize on his sports career through various business ventures continues today.
Besides Jordan, Beckham, and Brady, among the top 50 highest-paid athletes of all time are: former golfer Tiger Woods, Ronaldo, Roger Federer, boxer Floyd Mayweather, Michael Schumacher, and baseball star Alex Rodriguez. Serena Williams is the only woman in this group, while her sister Venus and Maria Sharapova enter the list of the top 100 highest-paid.
LeBron James has solidified his wealth with investments and production, and Cristiano Ronaldo with the CR7 brand.
5 athletes with the highest earnings of all time (adjusted for inflation): Michael Jordan (basketball) – 4.15 billion dollars; Tiger Woods (golf) – 2.79 billion dollars; Cristiano Ronaldo (football) – 2.23 billion dollars; LeBron James (basketball) – 1.88 billion dollars; Lionel Messi (football) – 1.85 billion dollars, Forbes writes.
