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CNN Live Today

Interview with Peter Newcomb

Aired August 12, 2002 - 13:34   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

CAROL LIN, CNN ANCHOR: Well, a look now at power of celebrity and marketing. When basketball legend Michael Jordan launched his line of Nike sneakers, they flew off the shelves. Now Jordan is hoping his men's fashion line will do the same. But does Jordan still have "it" factor to make it sell?
Joining us live from New York is Peter Newcomb, he is senior editor with "Forbes" magazine. Peter oversees annual Celebrity 100 list -- hi, Peter.

PETER NEWCOMB, SENIOR EDITOR, "FORBES": Hi, how are you?

LIN: I'm doing well. So why do you think Michael Jordan has decided to take a stab at a clothing line?

NEWCOMB: Why? Well, he did real well with shoes, didn't he? You know, we figure in the past 12 months, Michael has made about $36 million, much of that comes from his deal with Nike, so Michael Jordan and clothes, I think, is a real money-maker.

LIN: Yes. Do you have any idea on what the styling is going to be like? Is it going to be for big and tall, or is it going to be for everybody?

NEWCOMB: I think it will be more for everybody. You don't want to limit the market there. I think it will be kind of a mix between high fashion and urban.

LIN: How do you describe his style?

NEWCOMB: Well, he is certainly a well-dressed guy. But again, I think, it is -- what is the hip-hop term -- maybe it is phat, it is glossy, it is flossy (ph). It reeks of rich and cool, and he is a well-dressed man.

LIN: Kind of like a "Who Wants to be a Millionaire" look.

NEWCOMB: It is a cross between that and -- maybe Michael and Puffy Combs, maybe.

LIN: Yes. Yes. Well, Puffy is not doing so bad.

NEWCOMB: That's right.

LIN: So what do you think of this combination of Michael Jordan and Spike Lee? NEWCOMB: I think it makes perfect sense. You know, if you look back years ago, they teamed up for the Nike commercials, "Got to be the shoes," that worked out wonderfully. It became, really, kind of a cult hit. And now I guess they will say, it has got to be the shirts.

LIN: Is this man untouchable? I mean, you put together this "Forbes" 100 list of the top earning sports figures. Since Michael Jordan -- has he ever lost his place in top ten since retiring from the NBA?

NEWCOMB: No, No. He's been in top ten all along, and I don't see any sign of that changing. We have tried to quantify what celebrity is, and for us, it is a combination of earnings and popularity, and Michael has always been in the top ten, up there with Oprah and Stephen Spielberg, and George Lucas, people like that.

LIN: Is he even 40 yet?

NEWCOMB: Michael is -- let's see -- you got me. I think he is 38, 39.

LIN: So he is getting up there, I mean for a certain generation. Do you think his appeal, because it is his athletic appeal that we know him for, do you think his appeal is going to last as he gets older?

NEWCOMB: I think so, and here is my one anecdote for you. It was just the other day, a colleague's daughter was in, she is 10 years old. I looked at her shoes. She had a pair of Air Jordans on. She is working this summer, trying to save up her money for what? Another pair of Air Jordans. So I think that he clearly is still reaching the younger audience, and I think if you look at people like Arnold Palmer, for instance. This is a guy who is in his 70's and can still can command a one or $2 million contract to sell Cadillacs. So, I think Michael has got a great future in front of him.

LIN: Do you think it is because he has really managed his image really well? I mean, you know, there is probably some history back there behind closed doors with Michael Jordan, and it was touch and go with the possible divorce from his wife, which didn't go through, fortunately.

NEWCOMB: There was divorce and some gambling -- little gambling rumors kind of tarnished it a little bit, but he has done so well managing his career and his image. I think it is nothing but upside for him.

LIN: How much money does this guy make?

NEWCOMB: We figure the last calendar year, he has made $36 million. The bulk of that comes from his deal with Nike, which earned him anywhere between 16 and $20 million. He has got a $5 million with Gatorade. He has got a 5 million annual deal with Bijan the cologne. Then he has got a handful of other deals that pay him 1 and $2 million, including Hanes, the underwear maker...

LIN: Oh, yes. I love those ads.

NEWCOMB: ... Wilson. He has got lots of deals.

LIN: How do you compare him with Tiger Woods, though?

NEWCOMB: Tiger is the one guy who does better than him. Tiger probably makes about $50 million off the course. So Tiger right now is number one. I don't think Michael can surpass Tiger any time soon.

LIN: Unbelievable.

NEWCOMB: They do well.

LIN: Yes, they do well. Good guys too. All right. Thanks so much, Peter Newcomb.

NEWCOMB: You bet.

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