Nike traces its beginnings to January 1964, when Phil Knight and his former University of Oregon track coach, Bill Bowerman, formed the Blue Ribbon Sports partnership. The venture imported Japanese running shoes before developing the Nike brand and expanding into basketball, apparel and international markets.
Knight, a former middle-distance runner, had explored the business idea while studying at Stanford. He believed Japanese manufacturers could supply running shoes competitive with German brands on price and quality. Nike’s historical account says Knight and Bowerman invested equally in the business, which distributed Onitsuka Tiger shoes in the United States.
Knight sold shoes from his car at track meets while working as an accountant. Bowerman concentrated on footwear design, modifying shoes and testing different uppers, cushioning and sole patterns with runners.
From distributor to footwear brand
The Nike brand emerged in 1971 as Blue Ribbon Sports developed its own products and its relationship with Onitsuka deteriorated. The name referred to the Greek goddess of victory. The company changed its corporate name to Nike, Inc. in 1978, a separate milestone from the brand’s introduction.
Carolyn Davidson, then a design student at Portland State University, created the Swoosh in 1971 and charged $35. Nike’s archives identify a football boot as the first shoe to carry the mark.
Bowerman’s experiments included using a family waffle iron to develop a sole with a raised grid for traction. Nike’s accounts describe him pouring urethane into the appliance, which initially glued shut, before continuing to refine the materials and molds.
At the 1972 U.S. Olympic track and field trials in Eugene, Oregon, handmade waffle-soled prototypes known as the Moon Shoe reached a small group of athletes. Nike’s historical account describes competitors wearing them during training or on the infield at Hayward Field.
Supplier disputes and financial pressures
The transition to Nike’s own products included litigation with Onitsuka. Recalling the dispute in a 2017 interview, Knight said Bowerman had been a key witness. Knight described their division of responsibilities as one in which he managed day-to-day operations while Bowerman focused on footwear development.
Knight also described a dispute with U.S. Customs in a 2014 speech. In his account, the company faced additional import duties under the American Selling Price system, which could assess certain imported footwear against the wholesale selling price of comparable American-made goods. He described the resulting demand as a threat to the business.
Michael Jordan and expansion beyond running
Nike signed Michael Jordan in 1984, his rookie year in the NBA. The partnership included a signature line of shoes and clothing, and the first Air Jordan sneakers were released in 1985.
The company’s expansion also brought setbacks. In a 1992 interview, Knight said Nike had misjudged the aerobics market, struggled to manage its growing business and made an unsuccessful move into casual shoes. He said those problems prompted a greater focus on consumers and marketing.
Explaining the role of athletes in advertising, Knight said in that interview: “You can’t explain much in 60 seconds, but when you show Michael Jordan, you don’t have to. It’s that simple.”
Nike later expanded its portfolio through acquisitions. On September 4, 2003, the company announced that it had completed its purchase of Converse, acquiring all of its equity for approximately $305 million.
For fiscal 2025, which ended May 31, Nike reported revenue of $46.3 billion. In its annual filing, the company described itself as the world’s largest seller of athletic footwear and apparel.
