While Nike won't disclose how much it currently pays Michael Jordan, the brand's co-founder is more than willing to discuss Jordan's first Nike contract. In a new interview with Jim Cramer, Phil Knight confirmed that Jordan's first contract in 1984 was worth $250,000.

Knight also recalls the flak Nike received for paying Jordan that much.

"Fortune magazine ran a piece that said, 'There's no greater indication that Nike's lost its way than to pay that much money for Michael Jordan'" Knight remembers.

Knight also talks current sneaker prices and why he thinks paying that much for the likes of Jordan and LeBron James is worth it for Nike.