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If that was true, why would Nike be against having another brand line like Jordan Brand. Jordan Brand was the fastest growing line at Nike. It probably made up for a lot of the losses in their other segments. Jordan Brand was potentially on pace to surpass Adidas in North America. Nike would have loved it if Jerry could have done that. But Nike wasn't happy with him. It's clear that he was on his own timeline and Nike wanted more footwear designs from him. It's footwear first before the clothing line for Nike. But I can see him wanting a clothing line more because most of his income probably comes from the Essential clothing and accessory lines. Also, Jordan Brand and Jerry's line wouldn't compete directly. His line is far more expensive than Jordan Brand. Just look at the prices for his Adidas line.
Nike would have 3 basketball line if that were the case - Nike basketball, jordan and fog athletic which doesnt make much sense. First off he aint a basketball player let alone legend to have permanent contract. Even kobe didnt get a lifetime conract when he was alive since nike deemed hes too old to be given one.