Stories and Lessons from Nike Founder Phil Knight

I just finished Shoe Dog, Phil Knight’s book about the founding of Nike. It’s a fascinating account of the struggles and successes Knight and his team faced on their way to building the biggest sportswear franchise in the world. And if you think it was all Swooshes, Jordans and cushy campuses, read on. His story of going from a driven college runner to a billionaire CEO teaches us lessons about drive, dogged determination, loyalty and the importance of relationships.

It also made me deeply aware once again of the power of stories. Through Phil’s often-painful stories, you learn so much about business, entrepreneurship, international trade, the sports industry and the struggles of keeping balance. Below are three of the most poignant stories from the book. 
 
While we’re talking about stories, we have a great new training on storytelling here at GrahamComm. We help non-profits, for-profits, keynote speakers and others learn to harness the power of their own stories to create change. Check it out!
 
The $25 million lawsuit
When Nike, formerly known as Blue Ribbon, was hitting its stride, outselling all other athletic shoe companies, they were attacked. Adidas, Converse, New Balance and others banded together to sue Nike for $25M for unfair trade practices. This looked like the end of Nike. They could hardly pay their monthly payroll and debt obligations, to say nothing of 25 mil.
 
But Knight and his team couldn’t give up. They spent months researching, preparing their case and flying from Oregon to DC to plead their case. They fought relentlessly against an unfair gang fight from competitors bent on stopping Nike’s success. And just when it seemed the courts would rule against them, they dropped the settlement to $8M. Still a blow, but Nike survived, changed their practices and emerged stronger than before.
 
Nike’s IPO
Knight and his team never wanted to go public. They were sure that it would change the company’s unique, quirky Oregonian athletic culture. They drank heavily, they cursed, they ridiculed each other publicly. Nobody wanted this to change. But cash flow problems left them no choice.
 
The major detail to negotiate was IPO price. Knight felt in his bones that the company was worth $22/share. He hadn’t worked this hard for this many years to give it away. The investment bank, however, was determined to price it at $20. Both stood their ground and in one final, stressful conference call, they had it out.
 
Knight said again that the company was worth $22 a share, and he was absolutely not budging. The bankers countered that that would be a huge mistake and that it had to be $20.
 
“No way,” said Knight. “It’s 22, or there’s no deal.”
 
The bankers put Nike on hold. They came back and said, “Our final offer is $21.”
 
Knight’s team looked nervously at each other, fearing they were about to lose their biggest negotiation. They leaned on him to concede.
 
“22 a share. I know what this company is worth, and I’m not budging.” Silence. The frustrated bankers said they would sleep on it and call the next day. They called the next day and agreed to 22.
 
 
The death of his son
Knight’s life was Nike. Unfortunately for his family, this often meant that he was at the Davis Cup and NBA Finals instead of his son’s recitals. He and his oldest son Matthew always had a strained relationship. His son resented his absences, rejected sports and never felt connected to his dad.
 
One evening, Knight and his wife were at the movies when their second son rushed into the theater and urged them to come. He told them that Matthew had died in a diving incident in El Salvador.
 
Knight was decimated. Partly from knowing that their son’s life was cut short, that he wouldn’t get to enjoy marriage or children or building his own career. But what really stabbed him in the heart was knowing that he hadn’t been there for his son. That his work had kept him away, sending the message that work was more important than his boy. He wished that he could go back and be the ever-present father his son wanted so badly.
 
One of the first calls he got in the following days was from Tiger Woods. He had signed Tiger years before, and the deal had been lucrative for both of them. But what touched him beyond words was Tiger’s call and concern and friendship.
 
It was another reminder that the most important things in life were people. He’s 85, worth $47,000,000,000 and is retired living in Oregon. But as proud as he is of the company that he built, the most important things to him are the relationships and friendships he built along the way.
 
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