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Phil Knight

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Phil Knight
Born (1938-02-24) February 24, 1938 (age 86)
Portland, Oregon, U.S.
Alma materUniversity of Oregon
Stanford University
Occupation(s)Co-founder and chairman of Nike, Inc.
SpousePenny Knight
ChildrenThree (one deceased)
WebsiteNike Corporation

Philip Hampson "Phil" Knight (born February 24, 1938) is an American business magnate. A native of Oregon, he is the co-founder and chairman of Nike, Inc., and previously served as the chief executive officer of Nike. By 2011, Knight's stake in Nike gave him an estimated net worth of US$14.4 billion, making him the 47th richest person in the world and the 19th richest American.[1][2]

A graduate of the University of Oregon and Stanford Graduate School of Business, he has donated hundreds of millions of dollars to the schools; Knight gave the largest donation in history at the time to Stanford's business school in 2006. A native Oregonian, he ran track under coach Bill Bowerman at the University of Oregon, with whom he would co-found Nike.

Early years

Phil Knight is the son of a lawyer and newspaper publisher.[3] He attended Cleveland High School in Portland, and then the University of Oregon in Eugene, where he was a member of Phi Gamma Delta ("FIJI") fraternity and earned a journalism degree in 1959.[3] As a middle-distance runner at the school, his personal best was 4:10 mile,[4] winning varsity letters for track in 1957, 1958, and 1959.

Budding entrepreneur

Immediately after graduating from Oregon, Knight enlisted in the Army and served one year on active duty and seven years in the Army Reserve.[3] After the year of active duty, he enrolled at Stanford Graduate School of Business.[3] In Frank Shallenberger's Small Business class, Knight developed a love affair with something besides sports — he discovered he was an entrepreneur. Knight recalls in a Stanford Magazine article:[3] "That class was an 'aha!' moment ... Shallenberger defined the type of person who was an entrepreneur--and I realized he was talking to me. I remember after saying to myself: 'This is really what I would like to do.' " In this class, Knight needed to create a business plan. His paper, "Can Japanese Sports Shoes Do to German Sports Shoes What Japanese Cameras Did to German Cameras?," essentially was the premise to his foray into selling running shoes. He graduated with a master's degree in business administration from the school in 1962.[3]

Knight set out on a trip around the world after graduation, during which he made a stop in Kobe, Japan, in November 1962. It was there he discovered the Tiger-brand running shoes, manufactured in Kobe by the Onitsuka Co. So impressed with the quality and low cost, Knight made a cold call on Mr. Onitsuka, who agreed to meet with him. By the end of the meeting, Knight had secured Tiger distribution rights for the western United States.[citation needed]

The first Tiger samples would take more than a year to be shipped to Knight, during which time he found a job as an accountant in Portland. When Knight finally received the shoe samples, he mailed two pairs to Bill Bowerman in Eugene hoping to gain a sale and an influential endorsement. To Knight's surprise, Bowerman not only ordered the Tiger shoes but also offered to become a partner with Knight and would provide some design ideas for better running shoes. The two men shook hands on a partnership on January 25, 1964, the birth date of Blue Ribbon Sports, forerunner to Nike.[5]

Nike's origin

Knight's first sales were made out of a now legendary green Plymouth Valiant automobile at track meets across the Pacific Northwest. By 1969, these early sales allowed Knight to leave his accountant job and work full time for Blue Ribbon Sports.

Jeff Johnson, a friend of Knight, suggested calling the firm Nike, named after the Greek winged goddess of victory. Nike's logo, now considered one of the most powerful logos in the world more for its ubiquity than its aesthetic merits, was commissioned for a mere $35 from Carolyn Davidson in 1971.[6] According to Nike's Web site, Knight stated: "I don't love it, but it will grow on me." In september 1983, Davidson was given an undisclosed amount of Nike stock for her contribution to the company's brand. On the Oprah TV program in April 2011, Knight claimed he gave her "a few hundred shares" when the company went public.

Labor issues

Knight was named a "corporate crook" in Michael Moore's 1996 book Downsize This!. The book cited the harsh conditions in Indonesian sweatshops, where pregnant women and girls as young as age 14 sewed shoes for factories that the company contracted to make its products. Moore went to Knight in the hopes of convincing him to fix this problem. The interview can be seen in Moore's film The Big One . Of the nearly 20 CEOs whom Moore wished to interview for his movie, only Knight agreed to speak with Moore.

When questioned by Moore as to why no shoes were made in the United States, Knight responded that he was convinced Americans weren't interested in producing shoes. Moore responded with a challenge. If Moore could find 500 residents from his hometown of Flint, Michigan, who were willing to work in a Nike factory, would Nike then create a factory there. Knight accepted the challenge by saying he would seriously consider it. However, when Moore provided video evidence showing residents of Flint enthusiastically promising to work for a Nike factory, Knight backed down saying he would never seriously consider opening a factory there. Knight informed Moore that Nike does not own any of the factories that make its products. Knight told Moore if he were willing to invest in and build a factory in the U.S. that could match the price of footwear made overseas, Nike would consider buying shoes from him.

In 1998, Knight pledged to impose more stringent standards for the factories that Nike engages to manufacture its goods, including minimum age standards, factory monitoring, and greater external access to Nike's practices.[citation needed]

Philanthropy

In 2000, Knight was inducted into the Oregon Sports Hall of Fame for his Special Contribution to Sports in Oregon.[7] He is believed to have contributed approximately $230 million to the University of Oregon, the majority of which was for athletics.[8] On August 18, 2007, Knight announced that he and his wife, Penny, would be donating an additional $100 million to the University of Oregon Athletics Legacy Fund.[9] This donation is reportedly the largest in the University's history.

His significant contributions have granted him influence and access atypical of an athletic booster. In addition to having the best seats in the stadium for all University or Oregon athletic event, he has his own locker in the football team's locker room. An athletic building is named for him, the library for his mother, the law school for his father, and the basketball teams' home, Matthew Knight Arena, is named for his late son, who died in a diving accident.

However, Knight's contributions to the athletic department at the University of Oregon have encouraged controversy.[10]

Public outcry surrounding Nike's labor practices precipitated protests in 2000, which were led by a group of students calling themselves the Human Rights Alliance. Protests included a ten-day tent-city occupation on the lawns in front of Johnson Hall, the main administration building, demanding that the university join the Worker Rights Consortium (WRC) which was founded by United Students Against Sweatshops.[11]

University President Dave Frohnmayer signed a one-year contract with the WRC. Knight's reaction was to withdraw a previous US$30 million commitment toward the Autzen Stadium expansion project and to offer no further donations to the university.[12][13] Nike had endorsed the industry-supported Fair Labor Association, instead.[14] In a public statement, Knight criticized the WRC for having unrealistic provisions and called it misguided while praising the FLA for being "balanced" in its approach.[15] The students disagreed, saying the FLA has conflicting interests, but President Frohnmayer sided with Knight assertion that the WRC was providing unbalanced representation.[16][17]

Citing a legal opinion from the university's counsel, President Frohnmayer released a statement in October 2000 saying that the university could not pay its membership dues to the WRC since the WRC was neither an incorporated entity nor had tax-exempt status and to do so was a violation of state law. The Oregon University System on February 16, 2001, enacted a mandate that all institutions within the Oregon university system choose business partners from a politically neutral standpoint, barring all universities in Oregon from membership in the WRC and the FLA.[18] Following the dissolved relationship between the university and the WRC, Phil Knight reinstated the donation and increased the amount to over $50 million dollars.[19]

Also controversial was Knight's successful lobbying to have his friend and a former insurance salesman, Pat Kilkenny, named as athletic director at the universtiy.[20] Kilkenny, another wealthy athletic booster, had neither a college degree nor any germane experience. Kilkenny attended but did not graduate from the university, leaving the school several hours short of completion. He had been the chairman and chief executive officer of the San Diego-based Arrowhead General Insurance Agency and grew his business into a nationwide organization with written premiums of nearly US$1 billion when he sold the company in 2006.[21] ESPN's Outside the Lines spotlighted Knight and his donation-backed influence on the university's athletics in an April 6, 2008, episode.

In 2006, Phil Knight donated $105 million to the Stanford Graduate School of Business.[22] He also provided monetary support to his high school alma mater, Cleveland High School, for its new track, football field, and gymnasium.

In October 2008, Phil and Penny Knight pledged $100 million to the OHSU Cancer Institute, the largest gift in the history of Oregon Health & Science University, renamed Oregon Health Sciences University in 1981. In recognition, the university renamed the organization the OHSU Knight Cancer Institute.[23]

Later years

When Knight resigned as the company's CEO November 18, 2004, and retained the position of chairman of the board,[24][25] he was replaced by William Perez, former CEO of S.C. Johnson & Son, Inc. Perez was in turn replaced by Mark Parker in 2006.[26]

In 2002, Knight purchased Will Vinton (Animation) Studios, where son Travis worked as an animator, and changed the name to LAIKA. Travis was named to the Laika board of directors later that year and became CEO of LAIKA in March 2009, replacing Nike former-employee Dale Wahl.[27] Laika released its first feature film Coraline (in stop motion) in February 2009.

In 2009-2010, Knight was the largest single contributor to the campaign to defeat Oregon Ballot Measures 66 and 67, which, once passed, increased income tax on some corporations and on high-income individuals.[28]

On February 24, 2012, Knight was announced as a 2012 inductee of the Naismith Memorial Basketball Hall of Fame as a contributor. The Hall recognized him as the driving force behind Nike's huge financial support for the sport and its players. Knight will be formally inducted on September 7.[29]

References

  1. ^ a b Forbes profile page on Phil Knight Forbes.com. Accessed 2010.
  2. ^ Forbes http://www.forbes.com/profile/phil-knight/. {{cite news}}: Missing or empty |title= (help)
  3. ^ a b c d e f Krentzman, Jackie (1997). "The Force Behind the Nike Empire". Stanford Magazine. Retrieved 2008-05-28. {{cite journal}}: Italic or bold markup not allowed in: |journal= (help)
  4. ^ "Notable Oregonians: Phil Knight — Innovator, Business Leader". Oregon Blue Book. Retrieved 2008-06-01. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  5. ^ www.nikebiz.com
  6. ^ "Nike gives board seniors the boot". BBC. 2004-08-02. Retrieved 2009-06-28.
  7. ^ "Philip H. Knight - Special Contribution". Oregon Sports Hall of Fame. Retrieved June 28, 2011.
  8. ^ Bachman, Rachel (May 4, 2008). "Phil Knight's influence transforms University of Oregon athletics". The Oregonian. Retrieved 2008-06-01. {{cite web}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  9. ^ Bellamy, Ron (August 20, 2007). "Knights to give major gift to UO". Eugene Register Guard. Retrieved 2008-06-01. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help) [dead link‍]
  10. ^ Fish, Mike (January 13, 2006). "Just do it!". ESPN.com. Retrieved 2008-06-01.
  11. ^ Ripke, Simone (2000-04-05). "We're not going to leave". Oregon Daily Emerald. Retrieved March 24, 2009. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  12. ^ Lang, Jeremy (2001-04-04). "Old issues, new strategies". Oregon Daily Emerald. Retrieved March 24, 2009. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  13. ^ Romano, Ben (2000-04-24). "Knight pulls all money". Oregon Daily Emerald. Retrieved March 24, 2009. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  14. ^ Romano, Ben (2000-04-25). "Nike backs worker rights through FLA, but not WRC". Oregon Daily Emerald. Retrieved March 24, 2009. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  15. ^ "Statement from Nike founder and CEO Philip H. Knight regarding the University of Oregon". Oregon Daily Emerald. 2000-04-24. Retrieved March 24, 2009. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  16. ^ Romano, Ben (2000-09-25). "Great debate: WRC vs. FLA". Oregon Daily Emerald. Retrieved March 24, 2009. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  17. ^ Friedman, Thomas (2000-06-20). "Foreign Affairs; Knight Is Right". The New York Times. Retrieved March 24, 2009. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  18. ^ Adams, Andrew (2001-03-05). "OUS policy won't stop labor debate". Oregon Daily Emerald. Retrieved March 24, 2009. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  19. ^ Peterson, Anne (2004-11-19). "Nike's Phil Knight resigns as CEO". The Seattle Times. Retrieved March 24, 2009. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  20. ^ "OTL: Phil Knight and Oregon" (Flash video). Outside the Lines. ESPN. 2 April 2008. Retrieved 2009-11-12.
  21. ^ "Oregon Names Kilkenny Athletic Director". GoDucks.com. 14 February 2007. Retrieved 2008-06-01.
  22. ^ Tom, Christian L. (September 19, 2006). "Nike Founder Donates $105 million to GSB". The Stanford Daily. Retrieved 2008-06-01. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help) [dead link‍]
  23. ^ "Knights to give $100 million to OHSU Cancer Institute". Oregon Health & Science University. October 29, 2008. Retrieved 2009-11-12. [dead link‍]
  24. ^ Peterson, Anne M. (November 19, 2004). "Nike's Phil Knight resigns as CEO". The Seattle Times. Retrieved 2008-06-01. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  25. ^ Dash, Eric (November 19, 2004). "Founder of Nike to Hand Off Job to a New Chief". The New York Times. Retrieved 2008-06-01. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  26. ^ Barbaro, Michael (January 24, 2006). "Another Outsider Falls Casualty to Nike's Insider Culture". The New York Times. Retrieved 2008-06-02. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help); Unknown parameter |coauthors= ignored (|author= suggested) (help)
  27. ^ Salter, Chuck (December 19, 2007). "The Knights' Tale". Fast Company. Retrieved 2009-10-27. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  28. ^ The Oregonian, "The closing tally on the Measures 66 and 67 campaigns: $12.5 million" March 03, 2010
  29. ^ "Five Direct-Elects for the Class of 2012 Announced By the Naismith Memorial Basketball Hall of Fame" (Press release). Naismith Memorial Basketball Hall of Fame. February 24, 2012. Retrieved February 24, 2012.

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