Over the years, Air Jordan shoes from Nike Inc NKE have become popular to wear, collect and to invest in thanks to the lasting legacy of NBA superstar Michael Jordan and the popular shoe brand.
While Jordan shoes may be out of reach for some financially, a retailer has a way to make things affordable. But, there’s a catch.
What Happened: In 1984, apparel and shoe company Nike took a risk signing NBA prospect Jordan to a shoe deal. The agreement included naming rights and royalties that went above what most athletes were getting for endorsement deals at the time.
The deal has worked out well for both parties. The Air Jordan brand is now a staple for Nike and Jordan earning billions of dollars from the company over the years, surpassing his NBA earnings.
There are many Air Jordan shoes on the market and some are also part of endorsement deals with teams and athletes.
Air Jordan 5 Racer Blues can sell for $200 to $300 on secondary sneaker markets like StockX. A rent-to-own company offers the shoes with a payment plan according to a tweet from sports business reporter Darren Rovell.
“A Rent-A-Center is renting out Jordans for $19.99 a week. These Air Jordan 5 Racer Blues sell for about $300 on secondary sneaker sites. The offer is $375 to buy. After passing $375 in rental, there’s an offer to then buy the shoes for $525. And if you rent them a year, you keep them for $1,050,” Rovell tweeted.
Rovell credited an Instagram account that showed a picture of the shoes in question. Reports of the shoes being available to rent at Rent-A-Center locations made their way online months ago, including the Reddit subreddit r/Sneakers.
Benzinga reached out to Rent-A-Center and did not hear back at the time of publishing.
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Why It’s Important: Rent-A-Center, which is part of Upbound Group Inc UPBD, is one of the leading rent-to-own companies in the U.S. Upbound Group has over 2,400 locations under the Rent-A-Center and Acima brands in the U.S., Mexico and Puerto Rico.
Rent-to-own locations allow consumers to rent products for short periods as needed, or to make regular payments and take eventual ownership of the items. Under the rent-to-own practice, consumers can end up paying significantly more than they would if they purchased the item originally.
News of the Jordan shoes being offered by Rent-A-Center comes as more consumers are using buy now, pay later offerings from retailers, with many younger consumers utilizing the practice during the holiday shopping season.
Edwin Dorsey, author of the Bear Cave Newsletter, may have had the best caption to Rovell’s story with “Walk Now Pay Later.”
The story of signing Jordan to a Nike deal became a major motion picture from Amazon.com, Inc AMZN titled “Air,” starring Ben Affleck, Matt Damon and Viola Davis. The movie was nominated for several awards including multiple Golden Globe awards.
Image by Domenik from Pixabay