A pair of Michael Jordan's Nikes just sold for more than $92,000, setting a record that solidifies sneakers as an asset class
Courtesy Rally
- Rally last week sold a pair of Jordan 11 "Concords" that Michael Jordan wore in 1996 for more than $92,000.
- The company lets investors buy shares of collectibles ranging from vintage cars to sneakers.
- While the market for sneakers has weakened, there's still strong demand for the most coveted kicks.
A pair of autographed Jordan 11 "Concords" that Michael Jordan wore on the court in 1996 sold last week for more than $92,000, allowing people who invested in the asset early to nearly double their money.
The seller is Rally, a company that buys collectibles such as vintage cars, watches, baseball cards, wine, and sneakers. It even owns a triceratops skull. It sells shares of each to investors, similar to an IPO.
Investors can book profits by selling shares — no different than selling a share of Nike on the New York Stock Exchange — or hope a collector buys up all outstanding shares for a premium, no different than when Elon Musk bought Twitter.
Last week, a private buyer did that with the "Concords," paying $7.68 a share for a pair of shoes that listed for $4 a share in January 2021, a nearly 92% gain in less than two years, and further proof that high-end sneakers can be an asset class.
In that same time period, the S&P 500 increased roughly 2% and Nike shares decreased around 12%.
Cofounder Rob Petrozzo said Rally helps retail investors access markets that are typically playgrounds for the 1%.
"Our mission is turning aspirations into equity," he told Insider. "We wanted to give everybody equal access to this new world of investing."
Petrozzo said the company has around 500,000 users and 450 assets on the platform. There's no minimum for investors.
The first offer for the "Concords" last week was $65,000. Similar to a public company that receives an offer, the shoe's 545 investors were asked to approve or reject it.
Before that 48-hour process concluded, Petrozzo said another bidder came forward and offered $70,000. The bidders went back and forth before one made a winning bid of $92,135.
Petrozzo said the price is a record for "Concords," although other game-worn Jordan sneakers have gone for more, including a pair that sold for $560,000 in 2020.
He said Michael Jordan memorabilia remains popular. Rally also sold a pair of game-worn Jordan 3s for $61,500 in December, generating a nearly 180% profit for investors who purchased shares in January 2020.
But not all Jordan merchandise is a winner, and the secondary market for sneakers has cooled recently. Rally's other listings include a game-worn pair of Jordan 1s that are down 48% since first listing in November 2020.
Petrozzo said the market tends to be strongest for the rarest, "most relevant" pairs of sneakers with the most specific, meaningful stories.
"Investors are a little more defensive" now, he said.
But he said Rally sees the lull as a buying opportunity. He also said there's still a robust market for "best-in-class" products.
"We're starting to see much more discerning sneaker investors," he told Insider. "The 17- and 18-year-olds flipping sneakers on eBay are now in their early 30s and they're discerning."