Ronaldo's Lifetime Deal With Nike Demonstrates the Power of Social Media

Portuguese and Real Madrid soccer star Cristiano Ronaldo agreed to a $1 billion lifetime deal with Nike (NKE) in November 2016.

The deal, in part, was due to Ronaldo's expansive fan base and social media outreach.

Ronaldo reaches 262 million people worldwide via social media. The soccer phenom has 120 million followers on Facebook (FB) , 92 million on Facebook's Instagram, and 50 million on Twitter (TWTR) .

Ronaldo's broad outreach on social media presents a substantial opportunity for Nike as the company can tap into his fan base. His presence on social media alone generated some $474 million in media value for Nike in 2016, according to report by Hookit.

If that holds, Nike can recapture its $1 billion investment in Ronaldo in just over two years.

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