[Slate] Nike Soars Again... Together with Jordan

Movie 'Air': Nike Faces Crisis in Early 1980s
Scout Bacaro Focuses on Michael Jordan Before NBA Debut
Convinces Mother and Company President... Puts $2.5 Million Investment All In
Considered the Best Success Story of Corporate Promotion Using Sports Stars

Companies utilize entertainment content in marketing to enhance brand awareness, customer relationships, and sales. They incorporate the personalities and characteristics of movie and animation protagonists, popular celebrities, and sports stars into corporate and brand images and product promotions. The most successful case in history is Nike's 'Air Jordan.'

In the early 1980s, Nike faced a crisis. Just as it rose to mainstream status, surpassing Puma and others, it encountered another competitor: Reebok, which entered the U.S. market in 1979. CEO Paul Fireman targeted the emerging aerobics market and achieved great success. By providing shoes and clothes free of charge to popular instructors, Reebok recorded sales more than forty times higher within four to five years.

Nike sought new markets to outpace Reebok and focused on the National Basketball Association (NBA). Although it was predominantly African American players and did not initially attract much popularity, viewership gradually increased thanks to the performances of these athletic giants. Nike took notice of Michael Jordan, who was about to debut in 1984. Despite ongoing deficits, Nike significantly increased its promotional budget and took a gamble.

'Air,' directed and acted by Ben Affleck, is a film that intriguingly highlights the negotiation process at that time. The protagonist is Nike scout Sonny Vaccaro (Matt Damon), who played a key role in signing Jordan, beating Adidas and Converse. He recognized Jordan's extraordinary talent early on and simultaneously persuaded Jordan's mother, Deloris Jordan (Viola Davis), and Nike chairman Phil Knight (Ben Affleck). "We've found the player. This time, I have a good feeling." "A rookie?" "Yes!" "A player who hasn't even set foot on an NBA court?" "That's exactly what a rookie is."

[Image source=AP Yonhap News]

Director Affleck adapted and condensed various true events to fit the film. A representative example is Vaccaro repeatedly playing a videotape showing Jordan's performance. On the television, the 1982 NCAA basketball tournament final held at the Louisiana Superdome (now Caesars Superdome) is replayed.

The University of North Carolina, led by Jordan and James Worthy, faced Georgetown University, anchored by Patrick Ewing and Sleepy Floyd. The game was a close contest. North Carolina led 61-58 after Jordan made a layup near the end, but Ewing and Floyd scored consecutively, turning the score to 61-62. With 32 seconds remaining, coach Dean Smith called a timeout. "Pretend to look at Worthy or (Sam) Perkins, then pass to Jordan on the opposite side."

The game resumed, and the players executed the play exactly. Jordan received a pass from Jimmy Black 5 meters to the left of the basket with 15 seconds left and took a jump shot without defensive interference. The swish of the net filled the arena with cheers. CBS commentator Billy Packer recalled the moment:

"It was almost an open shot. Honestly, looking back now, it doesn't matter who devised the play that created that shot. Jordan always wanted the ball and intended to take the shot himself. That shot was the signal that a great legend of this era was beginning. Some players miss open shots or hesitate even when given such opportunities. Jordan kept waiting for that chance, and the result is well known. At that moment, there was no hesitation or unnecessary movement. He was simply ready to take care of it as soon as the ball came to him. Jordan's competitive spirit was that strong even then."

When victory was confirmed, the University of North Carolina players jumped for joy. The tournament's Most Outstanding Player award went to Worthy. Jordan took off his shoes and sat in front of the locker room, responding quietly to an NBC reporter's question about how he felt when he took the final shot. "I didn't feel any pressure. It was just a jump shot I always took from the weak side (the area with less defensive coverage)."

Director Affleck omits a series of events, repeatedly showing only Jordan's final shot. He points to Vaccaro's foresight, who recognized Jordan's role as the solution. Extraordinary wisdom does not arise spontaneously in front of a television. It is the result of relentless effort and patience.

Vaccaro entered the basketball world at age 24 in 1964. Together with his college dorm roommate Pat DeCesare, he organized the Dapper Dan Roundball Classic in Pittsburgh. The event attracted great attention as high school basketball all-stars gathered. College coaches had the opportunity to scout outstanding rookies, and Vaccaro built friendships with them.

Rob Strasser, a key Nike executive, noticed Vaccaro's unique approach and offered him a job. He deposited $30,000 into Vaccaro's bank account and instructed him to sign sponsorship contracts with college basketball coaches. Vaccaro visited each coach to get signatures on contracts. He handed out checks and sent free sneakers to players. When Larry Bird of Indiana State University appeared on the cover of Sports Illustrated wearing Nike shoes in 1978, Nike's credibility soared.

Vaccaro had been watching Jordan for a long time. They had no special relationship. Coach Smith was sponsored by Converse. At that time, Jordan's favorite brand was Adidas because the shoes were comfortable straight out of the box. He didn't have to break them in. So, he wore Adidas shoes during practice and Converse shoes during official games according to team rules.

Vaccaro judged Jordan's basketball skills to be superior to any player he had seen so far. He confidently claimed that Jordan, with leadership abilities, would elevate basketball shoe marketing to a higher level. He proposed to Nike executives, including Strasser, not only to sign a sponsorship contract but also to create a product line themed around Jordan. At that time, Jordan had not yet decided whether to skip his senior season and enter the NBA.

The sponsorship contracts between professional basketball players and sports companies at the time were less than $10,000. Only Kareem Abdul-Jabbar of the LA Lakers earned about $100,000 annually. Vaccaro insisted that Nike invest the entire $2.5 million it planned to distribute among several young, talented players into Jordan alone. Roland Lazenby recalled the time in his book 'Michael Jordan' as follows:

[Image source=AP Yonhap News]

"At that time, Michael didn't particularly stand out or qualify as a popular idol. He was recognized as just a player on Dean Smith's team with good skills. My point was, let's give all the money we have to Michael. Strasser listened carefully and asked, 'Would you say that risking your position?' I smiled and replied, 'Of course.'

Another key aspect of the 'Air' story is persuading the Jordan family. Vaccaro negotiated almost all deals with Deloris. In reality, it was through George Raveling, the Olympic team coach, that Vaccaro first met Jordan. Jordan was indifferent because he didn't know the Nike brand at all. Vaccaro was considered arrogant when he suddenly asked for a car while seriously discussing shoes. Even though he was told he would become a millionaire if the contract was signed, Jordan's main concern was a new car.

"Jordan was really difficult to deal with then. He didn't care about money at all. Although he graduated from the University of North Carolina, he was still like a kid. Basically, that was the issue, and since shoe contract amounts weren't that large in the 1980s, he showed no interest in my story. Moreover, he wanted to go with Adidas, not Nike. Adidas sportswear was the best back then."

Vaccaro met Jordan again the day after the U.S. Olympic basketball team won the gold medal. He offered a deal worth $2.5 million over five years, including a signing bonus, contract guarantee, and annual payments. They also promised to produce advertisements for Air Jordan basketball shoes. It was an unprecedented special treatment. Especially notable was the clause granting Jordan a 25% royalty on every pair of Air Jordans sold. Jordan was also to receive royalties on other Nike Air shoes.

Regarding Nike's terms, Lazenby wrote in 'Michael Jordan': "It was a gamble that risked the company's survival. Objectively, Jordan was a rookie who had not yet officially debuted, playing for a team with poor management in an NBA tainted by the hedonistic culture and cocaine in the 1970s. At that time, several Chicago Bulls players regarded cocaine as a life pleasure and praised it. If Nike had formally assessed the risks beforehand, they might have immediately abandoned the contract with Jordan. However, this venture began purely based on Sonny Vaccaro's intuition without a definite business plan."

Director Affleck adapted some of Nike's conditions, such as royalties, as proposals from Deloris. "Shoes are just shoes." "Until my son wears them." It is clear that she had a significant influence on the negotiations. Vaccaro said, "She was someone who staked her son's life on the deal," and "Jordan listened to his mother. He gained confidence from her words, 'These people want you as a business partner.'" Affleck strengthened her agency further, portraying her as a spiritual pillar. Why?

Before Jordan, there were several African American athletes considered idols of their era in the U.S. These included Jackie Robinson, the first black Major Leaguer; home run hitter Willie Mays; NBA legends Bill Russell and Wilt Chamberlain; football hero Jim Brown; and the eternal champion Muhammad Ali. Each carved their path amid widespread racial discrimination and the black civil rights movement. However, the advertising industry never regarded them as central figures in marketing activities.

By making his first deal with Nike, Jordan gained enormous economic power that changed his life completely. Director Affleck believes this would have been impossible without Deloris's education and dedication. Like Lazenby, he considers her the "source of Black Power," beyond mere resistance to racial discrimination.

"The source of Black Power was the Coastal Plain of North Carolina, where white supremacist forces once used violence to exclude blacks from political and social activities. Deloris Jordan inherited this concept from her father, grounded in economic awareness through sharecropping. Economic power was the greatest strength blacks could have in the past, exemplified by black-owned banks and small businesses thriving in Atlanta and Durham during segregation. Although the exact profits earned by black entrepreneurs and professionals are not well known, the wealth they accumulated firmly established the core of black society."