NBA legend Charles Barkley has revealed how financial advice from Michael Jordan helped him earn approximately $50 million through Nike stock options.
Barkley explained that Jordan encouraged him to change the structure of his endorsement agreement with Nike, suggesting he accept a smaller cash payment in exchange for company stock options.
The former NBA star recalled thanking Jordan for the advice, which ultimately proved highly profitable.
“So I wore 32 one year, but I called Michael and I said, ‘Hey, send me a pair of shoes. I just want to tell you how much I appreciate everything you did for me, giving me that advice on that Nike stock that made me $30 million.’”
According to Barkley, the conversation took place during a round of golf when he was earning approximately $3 million annually from Nike.
“Because at the time I was making about $3 million a year, and we were playing golf, and he said, ‘Chuck, I was talking to somebody. So I want you to quit taking $3 million. Take a million and take the other $2 million in stock options.’”
Barkley subsequently contacted his representatives to discuss Jordan’s recommendation. However, they initially expressed concerns about the risks associated with the proposed arrangement.
“So I called my people and said, ‘Hey, Michael told me to do this,’ because Mike’s always been a brilliant businessman. And they’re like, ‘This is risky. You think he’s going to be that great?’”
Despite those concerns, Barkley trusted Jordan’s judgment, having recognized his potential since their first meeting at the Olympic trials.
“I said, ‘Man, I ain’t never seen nobody like that dude,’ because I had met him at the Olympic trials. I said, ‘He’s going to be amazing.’”
Barkley ultimately followed Jordan’s recommendation and accepted stock options as part of his Nike compensation, a decision he says generated substantial additional earnings.
“And we did it. And like I said, I ended up probably making, seriously, another $50 million, to be honest with you.”
