For more than 30 years, Nike has been known for its endorsement of legendary basketball player Michael Jordan.
While athletic companies may pay a lot for endorsement from professional athletes, Knight says both Michael Jordan and LeBron James were absolutely worth it. He did not confirm what Nike pays Michael Jordan today, but said that the original contract was for $250,000 a year.
According to Nike's co-founder Phil Knight, the company uses a very sharp pencil with its endorsements and if the athlete doesn't produce the sales, the deal isn't worth it.
"It's an art, and you're going to miss a lot of them … When it all comes together just right, it kind of creates magic," Knight said.