Michael Jordan was without question the best player in the NBA during the 1990s. He was also the most popular star.
You’d think MJ would’ve been the highest paid player in the league, but that was not the case. In 1988, Jordan signed an extension on his rookie deal, giving him an eight-year, $25.7 million contract.
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This did not make Jordan the highest paid player in the NBA. During Jordan’s last season before his first retirement, the 1992-93 season, MJ made $4,000,000.
This was second in league behind David Robinson’s $5,720,000. Robinson was certainly a good player at this time, but he wasn’t a champion. He also didn’t draw the same type of crowds Jordan did.
MJ deserved a better contract and everyone knew it. The next time he needed a new one, Jordan looked to set a record.
Jordan’s New York hotel bluff
After Jordan’s first full season was completed in 1996, he sought a new contract. Jordan won the scoring title, MVP, Finals MVP, and led the Bulls to a then-record 72 wins and a championship.
Jordan made a dismal $3,850,000 during the season, which made him the 32nd highest paid player. This was simply inexcusable for the Bulls franchise to pay their star so low.
MJ wanted to receive a salary that reflected his true value. During contract negotiations, he used the idea of investing in a New York hotel as a strategic bluff. His plan was that if the Bulls didn’t meet his demands, he would consider taking a lower salary with the New York Knicks.
Jordan would make up for the difference in income through the hotel investment in New York. This was a frightening situation for Bulls owner Jerry Reinsdorf to be in. He once spoke about the incident and how Jordan used this bluff to secure a then-record $30.1 million deal.
“I was on the phone with Michael and [David] Falk and offered $20 million. No one had ever made that much before. Falk said they wanted $30 million for one season or $55 million for two,” Reinsdorf explained.
“If I didn’t give in, I don’t know if he said he’d go or might go to New York and take less money. I didn’t put much into it, that it was a bluff. But we were going to have a deal.
“I called [fellow investor in the Bulls] Lester Crown and asked his opinion: Should I do $30 million or $55 million? He said to do the thirty, to do the one year, and worry about the next one after that. I don’t believe Michael would have gone to New York, but I wasn’t taking any chances. I guess I should have gone for the fifty-five. It cost an extra $8 million. But we all came out okay.”
Reinsdorf made the right deal. Jordan led the Bulls to two more titles and they certainly were the most popular team in the NBA.
Today, players earn salaries that most fans would call outrageous—and it all started with Michael Jordan’s New York hotel bluff to the Knicks.
