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.