The Phone Call That Changed The World | Air | Prime Video

Summary

In this intense dialogue, the topic of Michael Jordan's compensation for his namesake Nike shoes is debated. The speaker argues that while Nike benefits from marketing his likeness, Michael should receive a percentage of the sales due to his exceptional talent and impact on the brand. The conversation highlights the struggle between the value of individual performance and the traditional business model of investment and reward, suggesting a potential shift in how exceptional athletes are compensated.

Takeaways

• 🤝 The discussion revolves around the business model of Nike and the potential revenue share for Michael, presumably a high-profile athlete, from the sale of shoes bearing his name.
• 📊 There is a misunderstanding about the revenue sharing; Michael does not participate in the gross sales of the shoes, which is contrary to the assumption made in the conversation.
• 💼 Nike, as a public company, has a set business model that does not allow for individual participation in gross sales, which would disrupt the industry.
• 🏀 Michael's performance and achievements, such as scoring 40 points a night or winning MVPs, are crucial for his marketability and the value of his endorsement.
• 👟 The significance of the shoes is tied to Michael's personal brand and his ability to create meaning and demand for the product.
• 🚀 The expectation is that Michael will not only excel in his career but also bring exceptional value that could potentially change the business model.
• 💰 The current offer from Nike is considered the biggest deal the company has ever offered, but it is met with resistance as it may not reflect Michael's worth.
• 🤔 There is a debate about the fairness of the compensation model, with the argument that extraordinary individuals should be compensated according to their exceptional value.
• 🔄 The speaker suggests that the traditional business model may need to change to accommodate the unique value that certain individuals bring to the table.
• 🚫 There is a warning that if the current business model does not adapt, Michael's influence could shift the balance of promotion, with him promoting the NBA rather than the other way around.
• 🏆 The speaker asserts that Michael's mother understands his worth and is advocating for a fair deal that reflects his potential and market impact.

Q & A

What is the main topic of discussion in the transcript?

The main topic of discussion is the business model and compensation structure for Michael Jordan's endorsement deal with Nike, specifically regarding the revenue from the sale of Nike shoes with his name on them.

What is the misconception about how Nike's business works according to the transcript?

The misconception is that Michael Jordan would receive a percentage of the gross sales from the Nike shoes with his name, which is not the case as Nike operates on a licensing fee model.

What does the speaker argue is Michael Jordan's main concern in this business deal?

Michael Jordan's main concern is creating meaning and value for the shoes that bear his name, as it is his performance and reputation that can drive sales.

What is the speaker's view on the importance of Michael Jordan's performance to Nike's marketing?

The speaker believes that Michael Jordan's exceptional performance, such as scoring 40 points a night, being Rookie of the Year, and making All-Star and All-NBA teams, is crucial for Nike's marketing and thus should be compensated accordingly.

What does the speaker suggest as a fair compensation for Michael Jordan's contribution to Nike's sales?

The speaker suggests that Michael Jordan should receive a piece of the revenue from the sale of the shoes and all future Air Jordan shoes, as his name and performance add significant value to the product.

What is the speaker's argument against the current business model used by Nike?

The speaker argues that the current business model is unfair to individuals like Michael Jordan, who bring exceptional value to the company, and that it may need to change to reflect the worth of such individuals.

What is the potential consequence if Michael Jordan does not get the compensation he believes he deserves?

The potential consequence is that Michael Jordan may not be promoted by the NBA, and instead, he could end up promoting the NBA, which would be a significant shift in the dynamics of their relationship.

What does the speaker imply about the rarity and value of individuals like Michael Jordan?

The speaker implies that individuals like Michael Jordan are extraordinarily rare and valuable, and they have the right to demand compensation that reflects their worth.

What is the speaker's belief about the relationship between Michael Jordan's self-belief and his mother's understanding of his worth?

The speaker believes that Michael Jordan's self-belief and his mother's understanding of his worth are significant factors in negotiating a good deal and recognizing his value.

What is the speaker's final offer to Michael Jordan in the transcript?

The speaker's final offer is $250,000 and a Mercedes-Benz, which they argue will be forgotten in a year, but emphasizes the importance of getting a piece of the revenue from the shoes.

What does the speaker suggest about the impact of Michael Jordan on the perception of the shoes?

The speaker suggests that a shoe is just a shoe until Michael Jordan steps into it, implying that his involvement transforms the product into something more valuable.

Outlines

00:00

💼 Business Model Discussion

The paragraph discusses the business dynamics of endorsement deals, specifically focusing on Michael Jordan's potential agreement with Nike. It highlights the misunderstanding about revenue sharing from shoe sales and clarifies that Nike, as a public company, operates on a licensing model rather than direct sales participation. The conversation emphasizes the importance of Michael Jordan's personal brand in driving sales and the need for him to perform exceptionally well to increase his marketability and the value of his endorsement.

Keywords

💡Revenue

Revenue refers to the total income generated from the sale of goods or services. In the context of the video, it is the income from selling Nike shoes, specifically those with Michael Jordan's name on them. The script discusses the potential percentage of this revenue that could be shared with Michael Jordan, highlighting the financial aspect of his endorsement deal with Nike.

💡Licensing Fee

A licensing fee is a payment made to use someone else's property, such as a trademark or patent. In the script, it is mentioned as a one-time payment that Nike might make to Michael Jordan for using his name on their shoes. However, it is clarified that this is not the same as participating in the gross sales of the shoes.

💡Public Company

A public company is a corporation whose shares are traded on a stock exchange and are available for the general public to invest in. The script mentions Nike as a public company, implying that its financial dealings, such as sharing gross sales with an individual, could have implications for its stock market performance and industry standards.

💡Economics

Economics is the social science that studies the production, distribution, and consumption of goods and services. The script refers to a 'set of Economics' around the business model of Nike and Michael Jordan's endorsement, indicating the complex financial arrangements and market dynamics involved in such deals.

💡Endorsement

An endorsement is when a celebrity or well-known person publicly supports a product, service, or brand. In the video, Michael Jordan's endorsement of Nike shoes is central to the discussion, as it is the basis for the potential revenue-sharing agreement being negotiated.

💡Likeness

Likeness refers to the depiction or representation of a person, often used in marketing and branding. The script mentions Michael Jordan's likeness being marketed by Nike, suggesting that his image and reputation are being used to sell products, which is a key point in the negotiation for a percentage of the revenue.

💡Rookie of the Year

Rookie of the Year is an award given to the most outstanding first-year player in a sports league. The script uses this term to illustrate the high expectations placed on Michael Jordan, indicating that exceptional performance on the court could enhance the value of his endorsement.

💡All-Star

An All-Star is a player selected to play in an exhibition game featuring the best players in a sports league. The script mentions All-Star selection and All-Star MVP as achievements that would increase Michael Jordan's marketability and, by extension, the value of his endorsement deal with Nike.

💡Defensive Player of the Year

Defensive Player of the Year is an award given to the best defensive player in a sports league. The script uses this term to emphasize the high level of performance expected from Michael Jordan, and how such recognition could justify a more lucrative endorsement deal.

💡Championships

Championships refer to winning the title in a sports competition. The script suggests that winning multiple championships is a key factor in establishing Michael Jordan's worth and the value of his endorsement, as it would significantly increase the appeal of the Nike shoes he endorses.

💡Compensation

Compensation is payment or reward for services rendered. In the script, the discussion revolves around the fair compensation that Michael Jordan should receive for his endorsement, which is tied to his exceptional performance and the value he brings to Nike's brand.

Highlights

Michael will receive a percentage of the revenue from the sale of Nike shoes with his name on them.

The business model does not involve Michael participating in the gross sales of the shoe.

Nike, as a public company, cannot disrupt the industry with direct sales participation.

The economic model around licensing fees is complex and not directly tied to sales.

Michael's concern is creating meaning and value in the shoes for young consumers.

His name on the shoe is seen as a marketing benefit by Nike.

Performance milestones like scoring 40 points a night and winning championships are crucial for marketing value.

The discussion highlights the disparity between exceptional talent and standard business practices.

The negotiation emphasizes the need for a fair compensation model that reflects Michael's worth.

The potential for Michael to change the NBA's promotional dynamics by leveraging his personal brand.

The argument that extraordinary individuals should be compensated according to their exceptional value.

The idea that wealth should be shared with those who bring extraordinary value to a business.

The transcript suggests a potential shift in the traditional business model due to Michael's influence.

The importance of recognizing and rewarding exceptional talent in professional sports.

The negotiation for a piece of the revenue from the shoe sales as a fair compensation.

The significance of the Air Jordan shoe brand and its potential impact on the industry.

The debate over the value of a single shoe versus the value added by Michael's presence.

The closing argument for a fair deal that acknowledges Michael's unique contribution to the brand.

Transcripts

Michael will get a percentage of the

revenue the sale of each shoe that is

sold

I'm sorry

Nike shoes just the ones with this name

on them

oh uh Mrs Jordan so that's not how

the business works at all I mean I I

understand the assumption

licensing fee in this case obviously a

groundbreaking fee but they don't

actually participate in the gross sales

of the shoe I mean because Nike's a

public company so that they can't that

would disrupt the industry and if they

wouldn't they um there's a whole other

set of Economics around this it's very

complicated yeah I'm sure it's quite

complicated but

quickly what's going to come in every

year well that's not his concern

um okay his concern

is that in order for the shoe to be

in order for young people many not have

real means to want to go out and spend

the money that they've worked all week

two weeks at the mall for then Michael

has to create the meaning in that shoe

his name is on that Shield yeah so

actually we think that's a benefit to

him because his likeness gets marketed

by Nike no

no is not in any way meaningful to Nike

unless he scores 40 points a night every

night pizza king is Rookie of the Year

makes All-Star and all NBA team

okay that would be exceptional and and

um you know it is the NBA so these are

the best of the best well he has to be

better he will win championships

multiple championships final MVPs I know

my son All-Star selection All-Star MVP

defensive player of the year but man

with respect Sydney Moncrief is the

defensive player of the year Adrian

Dantley won the scoring title they're

not you don't get to be magic and

Michael Cooper it's basketball but if he

does it he deserves to be compensated

you eat we eat that's all he's asking

that's a fair point but that's just not

how

business works I mean they they invest

the capital and they get the reward and

that's how it goes well maybe that needs

to change

he does what I think he's going to do

what you also think he's going to do and

what Michael knows he's going to do then

it won't be the NBA promoting my son I

promise you it'll be the other way

around and in that case he deserves a

piece

this is Jordan I

I understand what you're saying I

I actually agree with you

but that's just not how it goes

with gold people like your son

people who work for a living they don't

let us all

take the best we can get

and this is a great deal this is the

biggest deal this company has ever

offered anyone by far

Michael could blow out his knee next

week

oh I agree

since it's unfair

it's unfair to my son it's unfair to

people like you

it once in a while

someone comes along that's so

extraordinary that it forces those

reluctant to part with some of that

wealth to do so not out of charity

but out of greed because they are so

very special

and even more rare

that person demands to be treated

according to their worth because they

understand what they are worth

or their mother does

to know a good deal about my son

you tell me

is it me who believes in Michael his

name

or am I just a healthy reflection of who

he is and what he believes about himself

hmm

isn't that why you came to my home

yes it is

I'm gonna put it to you plain once again

we'll get 250 000 and a Mercedes-Benz

that will be forgotten in a year but he

gets a piece

of the revenue of the shoe and all

future Air Jordan shoes

a shoe is just a shoe

until my son steps into it

[Music]