A civil trial focused on Michael Jordan’s brand value and how much Dominick’s, a Chicago-Land grocery store chain should pay for invoking his name in an ad without permission continues in U.S. District Court in Chicago.
Andrew Zimbalist, a Smith College professor who has consulted for players unions, teams, leagues and states about sports economics issues, was the first witness to testify Monday morning in Jordan’s case against the defunct Dominick’s grocery chain in U.S. District Court in Chicago.
He also shared how image-conscious Jordan and his team are, occasionally turning down deals that do not fit the image he wants to cultivate, like offers from Jim Beam or from a headphones company that he did not consider age-appropriate. The headphones company was offering to pay him nearly $80 million over 10 years, and give him a 10 percent royalty on sales and a 10 percent stake in the company if certain goals were met.
By limiting the supply of the deals, Jordan’s value is kept up, Zimbalist said. Since 2000, Jordan’s typical endorsement deal has exceeded $10 million, Zimbalist testified.
Jordan remains among the most popular athlete years after his retirement, Zimbalist said, citing a “Q score” that measures the popularity of celebrities. As recently as 2010, Jordan had a Q score of 51, with the next-highest basketball player having a score of 41.
In 2009 — the year of the Dominick’s ad — Jordan had a Q score of 50, Zimbalist said.
U.S. District Judge John Blakey has ruled that limited details from Jordan’s endorsement contracts with Nike, Hanes, Upper Deck and Gatorade — including the size and basic terms of those contracts — can be used as evidence by Dominick’s, which argues Jordan’s $10 million demand is much too large for a single print ad.
Just two customers redeemed $2 coupons for steaks attached to the advertisement in a commemorative edition of Sports Illustrated. The ad declared “Michael Jordan … you are a cut above.”
