1962 – Synopsis | Travel the World to Get Insights & Chase Dreams
Phil Knight, aged 24, traveled across the world to chase his Stanford MBA dream of creating a shoe importing business. Now a days, air travel is accepted as part of pop culture, with bucket lists, gap years and travel vlogging becoming the norm. But back in the 1960s, ninety per cent of Americans had never boarded a plane. Most Americans had not travelled more than 100 miles from their home.
Phil or Bucky, as his dad used to call him, felt hesitant to ask his father for money to support a plan to travel the world from Hawaii, Berlin, London, Paris to Tokyo, Cairo, Athens while also exploring his business venture idea in Japan. Phil knew before going into the chat exactly why his father would reject the travel plan. Phil Knight’s dad ran a local Portland-based publisher and was a former lawyer with a poverty stricken upbringing. He was someone whose aim in life was to achieve respectability, and more importantly, to be seen as respectable by the society around him. Respectability demands a stable career, a beautiful wife and obedient children – children who don’t randomly have the urge to travel around the world. However, Phil’s request plays on his father’s youthful regret of not travelling much, and he gets his way immediately.
Knight decides to enlist a friend for the journey, his Stanford buddy Carter was excitedly on board with the global adventure. They had an amazing ‘beach-drenched’ time in Honolulu, where the itinerary goes out of whack because they fall in love with the place so much that they decide to rent a place and find jobs. From selling encyclopedias to securities, Phil finds he is uncomfortable being a salesman, and even more uncomfortable with rejection. Eventually, he moves on in his travels alone, as Carter chooses to stay behind for a girl he found. The journey Knight is on is one of self-discovery, to find out what interests him – and perhaps denotes something we all can relate to at one point of time or the other.
He describes his travels through various countries, elaborating on the ones he enjoyed the most while the rest are clipped to a couple of sentences. Knight searches for spiritualism everywhere he goes – as if he is seeking out a power higher than himself to give him directions. He does find the teachings of various cultures, but nothing moves him as he expected it to. Greece and its architecture, however, leaves a lasting mark on him. Athena the goddess of victory “Nike” is of particular interest. It might be historical revisionism but that name might come up later…..
Phil Knight creates his first business pitch in Kobe. Japan at the HQ of Tiger Shoes, Onitsuka Co. He was warned by two American ex-occupation military guys about how Japanese negotiating is completely different than the typical aggressive American manner. So Phil practices what he will say and how he will deal with his proposed pitch of the “Crazy Shoe Idea.” In the meeting, which featured top Tiger Shoe brass, Knight ends up speaking from a safe space – channeling the speech he gave at his entrepreneurship presentation at Stanford, something he had studied really hard for (‘58-’62) and which had been then the basis of his “Crazy Shoe Idea.” The basic pitch can be captured in the title of his small business class paper: “Can Japanese Sports Shoes Do to German Sports Shoes What Japanese Cameras Did to German Cameras?”
Knight was pleased with how the meeting went. The Onitsuka team seemed intrigued with his US distribution strategy which was peppered with quantitative insights, market sizing and a vision for getting Tiger ensconced into the US mainstream. When they asked what the name of his company was, Knight replied with “Blue Ribbon”. His pitch also hit a nerve as the Japanese management were seeing Yen ($) signs via the US track. Without knowing the outcome of the meeting (as Japanese are stereotypically hard to read), Phil had his father wire fifty bucks to Onitsuka so that they could send over shoe samples they talked about in the meeting.
When Phil arrives home, looking bohemian and travel worn, the first thing he asks his dad is if the shoes have arrived. This part of the ShoeDog story is interesting not just because there is a very beautiful description of every country he visited, but because the reader can see the author’s passion for shoes developing in successive stages – from nothing in Honolulu to noticing the shoes of even beggars and statues. Great minds connect desperate events to create innovation; Knight was already on his way to greatness.
The above synopsis is based on notes from ShoeDog by Phil Knight.
1963 – Synopsis | Accounting is a very useful skill
Mr. Frisbee had officially ‘made it’ in life – he was an alumnus of Harvard Business School and had quickly risen to become the CEO of a New York State Exchange Company. This makes quite an impression on Phil. In a meeting with Frisbee, Knight hears a useful philosophy of working, saying that everyone typically changes three jobs before they hit upon the right one.
Phil quickly discovers the downside of a small branch at L.R.Bros & M. There is no one to take up the slack when the workload increases, which means that everyone is logging in long hours, not leaving much opportunity for the learning process. However Knight admires the CEO, Al Reser, who happens to be a mere three years older than Phil.
1964 – Synopsis | Finding Bill Bowerman & the Importance of Rejection
1965 – Synopsis | Banks are Risk Averse & The PwC Experience
Phil also begins drinking a lot, courtesy the company of Mr. Hayes and the Reserves. With a full day ahead of him, he begins to handle his job, the Reserves training as well as his company all at once. With so much alcohol in his system, it becomes difficult to handle but Knight rallies on. Bowerman, on the other hand, rises up to help the company while Knight is so engaged. Having received a grand reception in Japan upon visiting the shoe factory offices, Bowerman gets excited about new possibilities and works on endless new shoe modifications for adapting Tiger’s Japanese products specifically for the American feet. Knight also picks up life lessons from Bowerman in ’65 about making the most of twenty four hours in a day. Apart from shoe design and his coaching, at a time Bowerman had multiple projects going on; for instance, trying to make the perfect energy drink for track racers. Bowerman was effectively inventing Gatorade. On top of that, Bowerman managed a family life as well as reveals that he is writing a book.
1966 – Synopsis | Bluff When You Have to & Failure is Okay
The difference between the last time and this time is evident to Phil – there is more confidence, more poise and much more ease in handling the negotiations. He successfully bluffs his way into making sure he is awarded the contract, but Knight does this by lying that he had an East Coast office where Tiger could ship their shoes. Phil faces the problem of actually having to erect an East Coast office and paying for a large shipment by biding his time.
1967 – Synopsis | Appreciate Dedicated Staff
Returning back from Japan with a 3 year contract of Onitsuka, Knight procrastinated in his communicating to Johnson that Blue Ribbon needed an East Coast store because Phil wanted someone else to do that job. Sometimes procrastination is difficult to avoid, Phil kept procrastinating giving Johnson the news that Johnson had to move to the East Coast. So much so that Knight hired a new store manager in Santa Monica to replace Johnson without telling him. When Johnson phoned Knight, however, Johnson accepted because of his lack of confidence. The next day however, he asked for a stake in the company or a profit participation and a raise. Via letter; Johnson threatened to quit with a two part ultimatum, one was to make Johnson a full partner in Blue Ribbon and two was to raise his salary to $600 per month + 1/3rd of all profits beyond the first 6000 pairs of shoes sold or he walks.
This is also the turning point where Blue Ribbon actually begins to expand into a company. Hires are made one after the other on the recommendations of Bowerman, new offices are moved into both by Knight and Johnson. It is plain that the failure that Knight had always seen forthcoming and prayed for to come early is held at bay for now. The growth of the company seems positive and inevitable. Woodel is a special hire out of Oregon, whom Knight hired under the recommendation of Bowerman. Woodel was a track athlete but was wheelchair bound after he was injured when a float fell on top of him while moving it with a team of 20 guys.
Knight’s relationship with Bowerman is also further developed in 1967. Bowerman’s book, a thin volume on jogging, goes viral and changes people’s outlook on running, almost making it seem ‘cool’. Knight is pleased at first, hoping it would add to the company’s success, but when he actually gets down to read it, he finds that Bowerman has clearly stated that running is not about shoes or branded apparel – one can use any kind for running.
This hits Knight badly for the purpose of his business, of course, but also on a personal level as even now Knight is looking for approval from Bowerman. That urge hasn’t gone away, and is the same since his school days. It also reflects on Bowerman’s character that running is something that is above business or profit for him.
Even with the company making-do with less than best facilities – like cracked windows that let in the cold or the noises of the pub that start from four everyday – beyond all of that, the beginnings of big success are evident. From a single basement in Knight’s parents’ home to multiple employees and offices, the company is growing fast and quickly. Even though Blue Ribbon was successfully doubling revenue year on year, it still could not support it’s co-founder Phil Knight after 5 years of operation. But Phil did not enjoy PWC enough and that work was too time consuming so he found a low key job as an assistant professor at Portland State. Phil decided he would focus on his shoe business which was as far as Phil’s father was concerned “still jackass-ing around.” Even the equity problem at the bank is staved off by meeting revenue expectations.
This chapter begins with Phil Knight deliberating about leaving his long-hours job at Price Waterhouse to be able to devote more time to Blue Ribbon. However, financially, it wasn’t possible to just work at Blue Ribbon. So he accepted the assistant professor at Portland State University, which allows him to earn income as well as have more time for his company. His senior at Price Waterhouse and his father both are baffled at his decision to quit his job.
He eventually asks her if she would be interested in doing accounting work for his company, and she acquiesces. She soon becomes indispensable, both from a professional as well as a friend perpective. Phil one day finds that she has kept all her salary cheques uncashed in her drawer, and this is what perhaps gives him the courage to ask her out on a date. They go to the zoo where he tells her more about himself, his travels around the world and his dream for his company. She is suitably impressed as she has only dated ‘boys’ who are interested in sports and cars.
They go on a couple more dates, and become more comfortable with each other. They end up meeting each other’s parents, and discover that their homes are as different as possible. Phil’s parents are polite but insist on knowing more about her. Parks’ home, in contrast, is rowdy and in disorder. Phil eventually connects with Penelope’s mother, who begins to like him.
With things going smoothly at the office and at home and Penelope spending increasingly more time with him, he asks her mother permission to take her away for a weekend with him. She refuses the first time, but Phil uses his negotiation skills to get her to agree the second time round.
The trip is successful, he proposes since having a relationship with a student wouldn’t bode well long-term, and ends with the couple very matter-of-factly deciding about their upcoming marriage.
This chapter also deals with Knight’s observations on Japan and its culture. He openly admires their way of doing things, their shyness and his growing camaraderie with Kitami, who invites him to his department’s annual picnic.
An important incident here that highlights the author’s character is his sending fifty dollars to a man in Japan named Fugimoto who lost his home and bicycle in a typhoon. Phil has just met and conversed with this man once, yet considered it important enough to help him out. The man replies saying he can’t accept the money as per the instructions of his superiors, but cleverly adds a postscript saying that if Phil instead sends the money to his home address, he will be able to take it. So that’s what Phil does so. Fugimoto would later become Knight’s spy against Onitsuka.
Now that the company is running in a stable manner with regards to steady sales, attention is drawn to other important factors like advertising, athletic endorsements etc. Knight recruits a broke art student for painting advertisements when he realizes how behind they are in that field.
Knight’s naiveté is also shown in this chapter when he openly puts in the mail to all his employees saying he has his own spy working on Kitami. He is also revealed to be a difficult person to live with, absentminded, a bad driver, not neat and spoiled in the sense that he is unable to take care of himself. His wife lovingly puts up with all of it. However, when she gets pregnant and they buy a house and Knight makes it clear that the house will be taken away if the company goes under, a major development in her character is reflected.
Knight also mistakenly takes a harder than necessary stance with an employee who is overburdened with work and wants a raise and is starting to detest Knight’s offhand management style. Woodell helps patch this trouble over by staying with the employee for a few days and effectively bonding with him.
Penny has always been shown as a diligent person who becomes indispensable to the office, but now, she works harder than ever before even when she is pregnant. Her fear of not having stability drives her more than anything else. She fills out uncertain and badly drawn orders, keeping up sales numbers through her days of morning sickness and weight gain. She is a stellar character who rises up to the challenges of Knight’s life.
Knight also reaches another key point in his life – he becomes a father. He is both scared but mostly wondrous at the feeling of having created his own child with his wife when he first holds his son Matthew. He is ecstatic, and the first thought that comes into his mind is to find his father and tell him the news.
This is the point when Knight faces many challenges, including one in his personal life. The gamut of challenges starts with a meeting for contract renewal in Japan that goes well but leaves him in doubt nevertheless. He secures 3 more years of Tiger shoes with distribution rights but simultaneously, orders start coming in with even worse delays – earlier, they used to be merely late, now they are the wrong models as well the wrong sizes. Customers start getting frustrated in large numbers. Of course, the Blue Ribbon staff understands that Onitsuka Tiger are likely first fulfilling their demand in Japan and then sending the leftovers to America.
He trains hard, comes back and beats Grelle in a running bet. This is perhaps the beginning of better days, because Knight finds out about Japanese trading companies, who like to extend lines of credit to fledgling companies. This provides Knight an option after the bank debacle. But he is careful, and takes time to decide.
1971 – A Synopsis
This chapter is whirlwind of ups and down, and reveals the character of the mysterious Mr. Kitami at length. While the Knights make his and his assistant’s American visit as hospitable as possible in order to help re-centre their relationship since Knight was told that Tiger was looking for alternative suppliers in the US, Kitami appears to be intentionally over react during a meeting at the bank by outright demanding that the bank “give Blue Ribbon more money to support its operations” and then storms out of the meeting. Knight is shocked, but catches the smug expression on Kitami’s face as they exit the bank, understanding that Kitami is trying to sabotage this deal in more ways than one.
Phil’s position was clear: Blue Ribbon could increase sales if they had more shoes and would have more shoes if the bank could lend more money, and the bank would lend more money if Onitsuka’s contract with Blue Ribbon was greater than 3 years and if the terms of service for delivering the shoes were tightened up. Blue Ribbon could seek funding from a trading company such as Nissho but Kitami said that they would send money first then take over second.
- Onitsuka was only manufacturing 1/4 of their own shoes and subcontracting the other 3/4st to cheaper suppliers;
- Kitami was worried that Nissho would find out which cheap suppliers were involved and then go around Onitsuka to produce the product and put Onitsuka out of business;
Kitami continues this irritable behaviour at the new offices, refusing to acknowledge the steady double growth as a good thing, demanding more. Here is where a side of Knight previously unseen is revealed. On continuously hearing that their growth should be triple through reference to a folder, Knight becomes curious and pilfers through a folder from Kitani’s briefcase while he is in the toilet. Shocked at himself, he confides in Woodell, who is shocked as well, but wants to analyze the contents nevertheless. The folder showed 18 US manufacturers and Kitami was interviewing half of them on this trip to replace Blue Ribbon. This was the ultimate betrayal. The next day, Woodell and Knight slid the folder back into Kitami’s briefcase when he wasn’t looking.
Here it is evident that although both men have a good conscience, when it comes to their business, there are some lines that they wouldn’t mind crossing.
For the first time, Bowerman’s goofy side is shown. He is always the quiet, resilient and diligent person in the background, but at this get-together, he does not mind being the verbose centre of attention. Perhaps it was this effect of alcohol that made Mrs. Bowerman forbid any alcohol in the house.
Kitami goes off on a two week trip and then returns to Portland where he proposes that Onitsuka would like to buying out Blue Ribbon (51% ownership stake) or otherwise Onitsuka would have to seek out superior distributors. Knight is forced to come up with a strategy to save his company. He stalls his decision and Kitami leaves without a problem.
Then First National decided to stop supporting Blue Ribbon just around this time. The perfect storm was brewing. So Knight got a deal with a small bank in California. But he turned back to the Japanese trading company (Nissho) which was looking for huge upside ventures like Blue Ribbon. Nissho was willing to take a second position to Blue Ribbon on their existing loans which would have quelled their bank needs. And to top it off, Nissho had been rejected by Onitsuka and so Nissho was embarrassed and wanted to work with Blue Ribbon. They were offering them access to a whole host of Japanese manufacturers to work with. The only problem being that Blue Ribbon’s contract with Onitsuka forbade importing any other track and field shoes…but the wheels were turning and Phil Knight was introduced to a shoe factory producer in Mexico that was called Canada and he was impressed to the point where he made an order of 3,000 pairs of soccer shoes which were not track shoes. This didn’t violate the terms but it broke the spirit of the contract with Onitsuka. The factory owner wanted to know the name of Knight’s brand, he said he’d get back to them on an answer soon.
One of the most historic moments of the story also falls within this chapter – the naming of the brand as Nike. Woodell wanted Falcon, on of the other staff wanted Bangle and Knight wanted Dimension 6. All terrible. After thinking of various names that the employees could not agree on, Jeff Johnson phoned Woodell to explain that he had a dream, the Greek goddess “Nike”. The name Nike was decided on in desperation. Nike was like Xerox, Kodak. He thought about the victory in World War 2. and so is a symbol resembling a swoosh of air. Knight sent the message that the product is called Nike.
Knight had spent 3 weeks in Japan finding manufacturers. And knew that Onitsuka would hear about his visit so he invited Penny over for the last week to make a visit to Kobe. Onituka and Kitami all got together. Fugimoto the spy was also invited.
1972 – A Synopsis
Kitami flew over to Portland in a rush and demanded to understand what had gone on at the trade show. He confronted Knight asking what was the deal with the orange boxes and the “Nik-e” pronouncing Nee-kay. Knight explained that it was a sideline he had developed in case Onitsuka did as threatened and yanked the rug from under Blue Ribbon. Kitami was on his heels, how many Nike’s did you order? Who manufactured them? Knight answered. Knight fibbed that the Nike’s were not in stores….Kitami finally wanted to know when Phil would sign his papers and sell Blue Ribbon to Onitsuka…clueless.
The rest of the chapter deals with Nike and how it gets itself into the endorsement business. It begins with the National Sporting Goods Association Show, where despite having mediocre product the company manages to exceed all of their collective order expectations. In disbelief, when asked why they were ordering the product at all, the salesmen confess that they know that this company always tells the truth. Although bewildered that such a simple thing could be behind this success, the answer sticks with Knight.
To top it all off, the University of Oregon Ducks unexpectedly win, and they do so wearing Nike waffles. Knight is ecstatic because it is a double whammy – his team is winning while wearing his product.
Finally, Bowerman reveals another facet of this character, which comes as a big surprise. After a shocking disaster where eleven Israeli athletes are kidnapped and killed, Bowerman is irrevocably shaken, and resigns from coaching a few days after. This is the first time Bowerman is shown in a defeatist stance. But he continued to develop the waffle shoe design. Johnson also worked on the Pre-Montreal.
Overall, the tone of the chapter is promising, and everything is going good for Knight. It seems there is nowhere to go but up.
1973 – A Synopsis
Knight takes another important managerial decision – he gets Woodell and Johnson to switch cities. This is difficult because both of them have settled well in the cities they already are in, but Knight convinces them to do it. And he calls them butt heads in the process.
A suit is filed against the company in Japan, and they sue back with the help of Knight’s cousin, Houser. Houser is tenacious and competitive, and plays well in front of a judge or a jury. Knight feels drained because of the depositions he has to go through, where various questions are asked of him just to somehow get him to accept breaking the contract. His father provides him valuable support during this time, both familial and legal. Having such a focused thing to concentrate on gives his father a mission too.
Meanwhile, Penny is about to have another child. Knight is worried about supporting two children financially. However, after the child is safely delivered, Knight’s mind returns to his business, and Penny can feel it. Although Knight realizes that what he did wasn’t something he should have done, he doesn’t stop himself. Neither does Penny. It is amply clear that she understands him and his state of mind completely.
Knight starts a completely new system where distributors commit to support the Blue Ribbon supply with advance commitments which would give strength to Nike’s capital raising ability. This picks up pace with the shoe suppliers for solving the problem of demand and supply. Specifically, he asks for bulk non refundable orders six months in advance. Although he faces resistance in the beginning, by the end of it, the stores who aren’t included beg to be let in.
1974 – A Synopsis
Other witnesses don’t do too well either. Bowerman refuses to prepare for his testimony because of his deep disdain for the Japanese business and ends up getting intimidated on the stand, and Woodell gets so nervous he starts giggling while spelling his name for the judge. After the judge passes a gag order forbidding both sides to talk about the trial, the very next day, Johnson speaks to a salesperson who turns up in the court with the defense team. Overall, the case looks like a wreck. But amidst all of this chaos, Knight manages to convey the unstoppable belief that he has in his cousin – and it seems the cousin is the only one who does not in some way contribute to the worsening of the case.
This chapter is extremely well worded – throughout the proceedings, it seems that Knight and his company will lose, but when the point of ruling actually comes about, there isn’t incredulous surprise at them winning. The feeling of joy afterwards is very well captured, and Knight especially gets carried away with the feeling of victory.
The other side however does not render the cheque immediately as per their settlement agreement. Another great victory is Jimmy Connors surprisingly winning the Wimbeldon and the US Open, both in Nikes.
Another important part of the chapter is Knight trying to recruit Strasser. Till now, Knight has never actually prepared a speech or arguments to try to hire someone. But he knows how valuable Strasser can be – and knows that Strasser too would love to work with Blue Ribbon. Eventually, Strasser’s only problem turns out to be getting his father’s permission – something Knight hasn’t prepared for. But that works out for the best and Strasser becomes the company’s first in-house counsel. It is clear that this is the bedrock of a relationship that is going to last for a long time..or is it? The number of similarities in their personal lives is already quite great, and now they are beginning a professional relationship too. As we see Bowerman becoming less and less focused, Strasser’s involvement simultaneously grows along side them.
1975 – A Synopsis
Through all the troubles that emerge, the characters of three people come out through and through – Ito, Knight and Giampietro, the man Knight had hired for managing the shoe factory.
Giampietro gets the company out of a huge fix in a very unconventional manner. When the cheques bounce and the angry employees swarm around Johnson, Giampietro drives around to the owner of a local box company, demanding a loan of five thousand dollars. It is a mark of Giampietro’s personality that he actually gets the loan. He then hands out crisp notes to the employees, staving off one disaster.
Ito comes out as a sterling character who believes in Knight. Single handedly, after knowing the exact circumstances, he visits the bank and shuts up their threats forever. He pays off the remaining debt and tells the bank that they can stop hoping to get business with Nissho from now. Knight is delighted and relieved in equal measures.
The chapter ends on a positive note, a much more positive place than could have been expected with the way the financial state of things were. It is clear that Nissho is in with Blue Ribbon for the long haul. It becomes apparent again, that like at the time of the courtroom troubles, it is truth and straightforwardness that saved Knight and his company this time too. Nissho buys out the bank (remember that in the US, there hundreds of banks to choose from) and that the Bank of California was to no longer be involved with Blue Ribbon.
Penny, once again, displays her faith in Blue Ribbon and gives Knight a positive assessment to rely on in times of intense stress.
Part two, 1975 – A Synopsis
This is a very short, very sad chapter. Everything up to this point has been a description of Knight’s struggles with his identity (at first), and then the troubles of getting his business set up. Much of the other parts of Knight’s life – like, death, which everyone deals with – has not come in a large enough form for it to have affected him majorly. This chapter shows how the major characters deal with such a crisis.
The chapter begins quite happily – Blue Ribbon has come out of all the trouble, but they still lack a bank. After trying a number of them, they end up finally getting a bank who is ready to take them on – the First State Bank of Oregon, in Milwaukie. Knight is finally relieved and gets a good night’s sleep after weeks.
The Memorial Day weekend is coming up, and Penny wants to get away, and so does Knight. But as has been shown before, Knight loves to mix business with pleasure – and so he proposes going to Pre’s weekend meet, where he has invited a mix of some of the best runners in the world. The weekend promises to be fun and exciting.
Pre’s death is heartbreaking particularly because he was so young. Knight compares it to his age – when he was twenty four, he had hardly lived life. Pre was already world famous and had so much to do. Bowerman is particularly broken down about Pre’s death, having been his coach through tough times, and having also survived the attack on Israelis at the time of the Olympics. Bowerman gives a beautiful eulogy, but look completely spent thereafter. Having been an unstoppable force, it looks like Bowerman is finally slowing down, and this may be a hit from which he may never recover.
Pre was a beloved athlete, and people start leaving gifts at the place he died – flowers, letters, notes, even Nikes. Knight and the rest of Blue Ribbon decide that they will collect everything and build a shrine for Pre, because he deserves that. They have no idea how they will be able to collect the money for this sort of a thing, but Woodell and Knight agree that as long as they are in business, they will somehow find the money for things that matter the most.
1976 – A Synopsis
For solving the factory problem, Knight selects Gorman and takes him to Taiwan with him to give him a refresher course of Asia. Here, Knight fulfills one of his earliest wishes – he goes and lives in a suite he could not afford at the time of his student world tour. This shows how far he has come from then. People also appreciate Nike at the trials, and Knight overhears a statement that says Nike is really beating Adidas.
Nike gets a huge victory when at the Olympic trials, most unexpectedly, the three men wearing Nikes all end up crossing the victory line first. Flushed with success, they hope for a Nike Olympic winner, knowing that this is the most legitimate way for a shoe company to show that it is truly in the game. However, as the competitor’s shoes are shown on television, it is revealed that Frank Shorter is actually wearing Tigers for the ’76 Olympic marathon. This is the defining moment when Knight realizes how invested he is in his Nikes – he is not making Nikes, the Nikes are making him.
Meanwhile, Knight’s family life is suffering as he is spending less and less time with his friends. He ruefully admits that this is not a problem he can solve with the help of his friends and his team. He questions his parenting style – which is also his leadership style, i.e. not being hands on – and wonders if it is wrong or right. As a parent, one of his boys is perpetually frustrated with him because he doesn’t have enough time for the family; while the other boy adores him no matter what.
1977 – A Synopsis
Knight starts focusing on college teams and getting them to wear Nikes. Strasser proves more invaluable than ever, because he shows himself to be a great negotiator. For the third time in this story, honesty is what leads them to what they want.
Nike becomes popular not only because of sportsmen wearing their shoes, but because of the relentless efforts of one of the guys on the team handing out Nikes to anyone and everyone on Hollywood. Appearance in a couple of very famous shows ensures that those models sell out like hot cakes.
Knight still is skeptical of the reach of advertising, although he loves the new campaign.
The question of going public comes up again, and this time Knight cannot evade it. He realizes that it is inevitable, and so puts it to a vote. The answer is inconclusive. While still going through this mental upheaval, Knight gets a letter from the Customs Service saying his company owes them twenty five million dollars.
Knight’s frustration and anger are highlighted like never before. Earlier, he has been in tough situations but he is never portrayed as particularly aggressive. In this situation, he ends up mashing his phone to a pulp thrice.
Meanwhile, with sales climbing, the Knights decide to buy a new home. Although emotional about leaving the one in which their kids grew up in, they decide they need more space, and they can definitely afford it. Knight’s struggle with fatherhood continues. He begins to rectify his lack of presence by being available for all weekend games and sports that his kids participate in. He soon realizes that Matthew isn’t really interested in sports. Unfortunately, this effect rubs off on Travis as well, who is actually quite talented.
Knight feels let down by his kids, because sports are such an integral part of his life. It isn’t just that he mentions Nike as his third child, it is also that he has seen life through sports metaphors, and has climbed out of the most difficult times in his life by simply going for a run.
1978 – A Synopsis
Strasser is once again ready to defend Nike against injustice, but both Strasser and Knight are aware of the fact that he can’t on the US Government alone – they would need help. Enter Werschkul. Werschkul is an eccentric but extremely intelligent person whose job is to move to Washington DC and help sort the case out. Though starting out very well, Werschkul eventually loses his mental balance working over the project, and Knight decides he himself will have to head to Washington.
Knight also decides to start a line of apparel because that would give Nike more respectability and diversification. Till now, Knight has made sound choices about his staff and their positions. This is when he makes a major mistake for the first time – he hires Nelson as head of the apparel department, and realizes later how unfashionable Nelson is. It is too late to make a change, however.
Nike moves out into new offices, and Knight notices the fact that his team looks eccentric and underdressed at best and ridiculous at worst. He institutes a dress code, which is met by rebellion. Sticking to his guns, he starts religiously fining anyone who doesn’t follow the letter as well as the spirit of the dress code.
Eventually, as Nelson comes out with a disastrous result (as was expected), though horrific, the situation is so hilarious that it breaks the tension for everyone involved, including Knight. Knight then puts Woodell in charge of the apparel line, and competent as ever, Woodell churns out a brilliant result.
Knight also reflects on the fact that he is steadily approaching burnout at a time when he is facing one of the biggest problems facing his company. He sits in his office – in his new chair that his designer has fashioned like a baseball mitt – and instead of appreciating himself and his team for having come thus far, can only see the problems looming in the distance.
Knight’s faith in Woodell has always been a salient point of the story, but is outright stated in this chapter when Knight wonders if he should just make Woodell do every job including his own, since he does everything so well. Knight is not looking forward to going to Washington but realizes it is something important, and deserves the best he can do. He also thinks that maybe the only way out of a potential burnout situation is to work harder.
1979 – A Synopsis
Finally in Washington, Knight tries to logically argue with the Customs official, but there is nothing which seems to move him – flattery, appeals, the American spirit, the truth, nothing. Knight has support from the treasury department, but he simply waves it off saying the Treasury department’s memo isn’t binding on Customs.
Knight now realizes what a difficult time Wershckul was having. Knight keeps on commuting to Washington, meeting with important people and trying his best to get ahead of the situation. Finally, it seems a good opportunity is at hand when they secure a meeting with Senator Hatfield. They spend a considerable time going over every possible argument and every possible counter argument. Knight is extremely worried about the meeting, and is so nervous that he gets extremely sweat before the meeting. His chief worry is that if they are not able to convince him, they may not get another chance.
The efforts finally pay off and the bureaucrat is under increased pressure to stop pressurizing Nike to pay. Knight derives a certain satisfaction at getting back at the bureaucrat (whom he refers to as a bureau-kraken).
Nike does a tremendous job at the new retail space they open in Portland. There are long lines and people want to try out everything that is available. There is so much pressure that even Knight helps out. He realizes why it is so important to carry on, no matter what – this is what the company is, and he has to keep fighting to keep it this way. The Nike office also shifts again, this time to a huge forty six thousand square foot building, complete with a steam room, a library, a gym and endless conference rooms. Knight consciously leaves behind the baseball mitt chair. He, however, does not feel a sense of victory as he should, seeing his team shifting into bigger offices. He is still worried about all of it being taken away any day now, and with that worry over his head, is unable to enjoy what should have normally been a great win.
The problems that the company was facing in Japan begin to narrow down in Taiwan as well. Knight knows that it is inevitable that he will have to move to China. He reaches out to David Chang, who is supposedly the best expert on the country. Chang presses all the wrong buttons at the company. He makes a fat joke after meeting Hayes, Strasser and Jim Manns, the new CFO; and mistakenly assumes Woodell is temporarily in his wheelchair and asks him when he is getting out of it. Knight optimistically tells him that there is nowhere to go now but up with Chang. 1 Billion Chinese = 2 billion shoes.
1980 – A Synopsis
Two things happen in this chapter that changed the course of history – Nike entering China, and going public.
Knight and his company are told that things are done differently in China – they have to be issued an invitation to be able to go to the country and start talking about business. So they send a very lengthy formal request on Cheng’s advice, and hope for the best. Fortunately, they get a positive reply.
They solve the Customs problem once and for all by playing by the same rule that is being forced on them – they manufacture a very cheap shoe, so customs calculations would have to be based on that. Secondly, they start a TV commercial sympathetically telling the story of a hardworking Oregon company who is forced to fight with the big bad government. This gains traction among the public.
As a masterstroke, they file a suit against the government. Finally, the bureaucrat gives in. However, Knight is in no mood for a quick settlement. He refuses to pay a single penny. Over time, he is convinced by everyone around his that this is the best course of action to take, and settles for 9 million. There is a moment as he signs the cheque when he reflects how far he has come from times when he could not pay a million dollars in debt without fear of the cheque bouncing.
After everything is settled, instead of feeling an overwhelming feeling of victory, Knight is surprised that he feels regret – he wishes he could do it all over again. Throughout the going public process, he has been thinking of defining moments that have led his company to where it is right now. There is a strong sense of nostalgia.
He wakes up and overnight he is worth $178 million, but he doesn’t feel any different.
Night – A Synopsis
The epilogue is set in 2007 and explains how far everyone involved in Nike has come till now. It shows the efforts Nike has made worldwide to make lives of people better, how the company has become even better when hit with problem like the sweatshop controversy, and how it is continuing to grow in the present. His hometown has honored him in a myriad ways, by naming buildings after him and Bowerman.
The epilogue deals with some very heartbreaking deaths. The first of these is the death of Knight’s son, Matthew, who dies in a diving accident after a life of running away trying to find himself. Knight still wonders if his being around more would have helped Matthew be a different person.
Bowerman dies after going back to the same place he was most nostalgic about. Knight recalls every memory with him, of running for him, that meeting that started the company, and how he was the creative genius behind so much of the company’s success.
Knight also reveals that he shares a very good rapport with all the athletes that endorse Nike, and how they have been there for each other in hard times.
Although Knight has since retired as CEO, his mind is still looking for new things to do. He feels restless, burrowing into his childhood memories and thinking of his family. The idea of writing a memoir pops up in his head because he believes that the story of Nike hasn’t been told properly. Additionally, it might inspire or help a new entrepreneur who may also learn from the mistakes Knight made. It is important to find a calling in life and never settle for a career or job. It is important to be persistent, but it is just as important to know when to quit and move on to the next thing.
He often wonders about doing it all over again – what he would change, what he wouldn’t do. Knight also candidly admits his failings. As they became rich after the public offer, the money affected both him and Penny in embarrassing ways. Penny took to going around with thousands of dollars in her purse and Phil started wearing sunglasses everywhere. However, when the initial silliness wore off, they return to normal. Now they make it a point to give away a lot to charity and want to leave most of their money after they die.
Knight contemplates on his favorite moments from the entire journey, and thinks of what all he would need to write his memoir. He remembers all those letters from Johnson that he could never keep up with, he thinks of the slides he had after he came back from travelling the world.
Seeing the movie The Bucket List also puts him in deep thought about his own bucket list. Having discovered nothing substantial that he could begin on immediately, he feels a little restless, but as soon as he chances upon the idea of writing a memoir and working towards it, he feels at peace again.