Michael Jordan, part-owner and president of basketball operations of the Washington Wizards and believed by many to be the all-time king of sports endorsements, wants to move beyond endorsements and into an active ownership role in companies that wish to use his brand name, according to his agent, David Falk of SFX Entertainment.
"Michael is transitioning to a new role in the world of business as an owner rather than an employee," said Falk. "He is moving in the direction of ownership and design of any company he's involved with."
Falk pointed to Jordan's involvement with Nike, which includes a stake in ownership and a role in the direction of the subsidiary, Brand Jordan.
Falk said Jordan intends to honor all of his current business commitments, including endorsement deals with Nike, Gatorade, Sara Lee subsidiary Hanes, Rayovac and MCI WorldCom Inc. as well as an Imax movie scheduled to debut May 5 called "Michael Jordan to the Max."
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Jordan, 37, who retired from the NBA a year ago after winning six world championships with the Chicago Bulls, became active in January in owning and running the Wizards. Jordan also has an interest in a Web site called mvp.com, and is estimated to be worth well in excess of $300 million, according to Fortune magazine. Jordan's endorsement agreements with companies are estimated to be worth as much as $40 million a year, according to Chicago-based firm Burns Sports Inc.
Falk said Jordan's plans, first reported in yesterday's Chicago Sun-Times, are similar "to when he went from a player to a businessman. Now we have him transitioning from a businessman and endorser to an owner."
Falk said Jordan plans to spend "more time" running the Wizards--as well as other business ventures in which he has an ownership and "hands-on" role. The amount of time--or lack of--Jordan has spent in Washington working with the Wizards players and organization has come under scrutiny by some observers. "Have patience, give us some time," Jordan said last week.
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Jordan, who could not be reached yesterday for comment by The Post, told the Sun-Times that endorsing is "a stage you get past."
"Now I don't want my name just used," Jordan told the Sun-Times. "Endorsements are good for a while--they give you a personality, a lot of credibility. And now I have that name. But I want to understand the business itself, see the value in something other than just endorsing."
Falk said, "In this new role, Michael will be hiring others to endorse products for him."
Pamela Neferkara, director of marketing for Nike's Brand Jordan, said the shoe giant has had a relationship with Jordan since 1984 and looks forward to maintaining that relationship in the future.
"Michael is more than just a spokesperson," Neferkara said. "He is the heart and soul of Brand Jordan. He's expressed a lot of interest in becoming more involved with the brand and he has. There has been no change in his relationship with us."
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Jordan and Nike together pioneered a new era in sports endorsements, and many observers believe the former Chicago Bulls superstar was largely responsible for the wild popularity of Nike footwear. Fortune estimates the Jordan persona and product line have been worth $5.2 billion to Nike.
"You can make a pretty good case for him accelerating the growth of the sneaker industry by himself," said Terry Lefton, editor-at-large at Brandweek, a trade publication.
Lefton also said that Jordan's brand power may be on the wane since his retirement from the NBA. Marketing experts said athletes tend to lose their appeal a few years after they retire.
"Some people think his endorsement prowess will be long live," said Lefton. "I don't think he has more than a couple of years left."
Lefton said Jordan's retirement from basketball is also partly responsible for the athletic shoe industry's current disarray. The league's television ratings also have suffered since Jordan's retirement, and NBA officials hope for the emergence of "the next Jordan."
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"He broke ground being the greatest basketball player on the planet, the top endorser on the planet and the top Afro-American endorser on the planet," said Bob Williams, of Burns Sports Celebrity Service in Chicago. "He's reinventing himself into Michael Jordan businessman/investor. He's gotten so big and made so much money that he's forgoing the endorsement income and channeling his energies into being a basketball executive and the Internet and other ventures that he sees fit."
Claire Hassett, a spokesman for Mississippi-based MCI WorldCom Inc., said the company is in the fifth year of a 10-year contract with Jordan that she called "very successful."
"These have been the most successful ads in our history," Hassett said. "Viewers admire him, respect him, and want to be like him. That's motivating to consumers." Hassett said "we're not even going to think about" what happens after the contract expires.
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Hanes spokeswoman Peggy Carter said Jordan has been a spokesman for Hanes men's underwear for 10 years, and that the company looks forward to continuing that relationship.
The Jordan campaign "moves the needle very considerably on the interest in our brand," said Carter.
What Mike Likes
Michael Jordan's endorsements have included:
Nike shoes and apparel
MCI long distance telephone service
Rayovac batteries
Ballpark Franks
Hanes underwear
Coach Leather products
Bijan fragrances
Upper Deck trading cards
Oakley Sunglasses
Wilson balls, watches and sports equipment
CBS SportsLine Web site
Chicago Chevrolet dealers
NBA Entertainment/CBS-Fox home videos
Michael Jordan's Restaurant
Source: Associated Press
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