The business plan for Blue Ribbon Sports came from a Stanford assignment

Nike started out as a Japanese shoe distributor called Blue Ribbon Sports

Nike cofounder Phil Knight’s first business venture was distributing Onitsuka Tiger running shoes in America. Knight would drive to track meets and sell the shoes out of the back of his car.

Nike's Phil Knight ran for Bill Bowerman at the University of Oregon before they became business partners

They became business partners when Knight tried to sell the Onitsuka Tigers to Bowerman for the Oregon track team. Bowerman told Knight he didn't just want the shoes; he wanted in on the whole deal.

Nike only paid $35 for its famous swoosh logo—and cofounder Phil Knight didn't like it at first.

Nike cofounder Phil Knight once taught accounting classes at Portland State University

Before Nike took off, Phil Knight taught accounting classes at Portland State. He met two very important people there: his wife Penelope and Carolyn Davidson, who designed Nike’s logo.

Nike was almost named ‘Dimension Six’

Jeff Johnson, the company’s first full-time employee, said the name came to him in a dream just before Blue Ribbon Sports filed a patent for the “Nike” football shoe. Nike cofounder Phil Knight wanted to name the company “Dimension Six,” but was ultimately convinced that a one-word name would be better. (Some users may experience a paywall.)

One of Nike’s most transformational executives started out as its lawyer

Rob Strasser helped settle a lawsuit against Onitsuka Tiger when Blue Ribbon Sports became Nike and stopped distributing the Japanese shoes. Strasser then became a powerhouse at Nike credited with saving the company from going under in the 1970s, before leaving the company in 1987.

Nike is one of the world's most recognizable brands, partly due to its 'swoosh' logo.

Nike couldn’t sign legendary distance runner Steve Prefontaine due to regulations

Because of amateur running regulations, Prefontaine—who held every American running record from 2,000 to 10,000 meters at the time—couldn’t do a paid endorsement for Nike. So Nike’s Phil Knight decided to give him a $5K yearly stipend and print business cards that said Prefontaine was the “National Director of Public Affairs.” When asked what that meant, Knight said, “it means he can run fast.”

These famous brands used to have different names

Did you know that Nike used to be called Blue Ribbon Sports? Or that Google was originally named BackRub? Getting a brand's name right is a tough job; there's an entire cottage industry of brand naming agencies to prove it. See which brands got it right the first time—and which ones might be better off with their current names—in this article.

Bill Bowerman got the idea for the breakthrough waffle-knit running shoe from a waffle iron

Nike cofounder Bill Bowerman was trying to find new ways to create traction for his runners on artificial turf. He looked at the waffle iron and realized that the pattern would work for the shoes’ soles.

Nike made retailers pay for Air Jordans upfront to guarantee stock

Instead of paying for the inventory sold, Knight locked retailers into iron-clad agreements, where the companies would pay upfront for Nike inventory (but at a 7% discount). Knight did this to leverage debt, allowing retailers a better chance at getting the wildly popular Air Jordans.

Bill Bowerman’s daughter-in-law found the waffle iron he used to create a breakthrough shoe

Nike cofounder and University of Oregon track coach Bill Bowerman poured polyurethane into a waffle iron for his first attempt at creating the revolutionary waffle-knit sole. The waffle iron, which was found in his backyard, now sits in Nike’s headquarters.

Kanye abruptly left Nike in 2013 and took his Air Yeezys to Adidas for $10M

In 2009, Kanye West became the first non-athlete Nike produced a signature shoe for. However, Kanye left Nike for the company’s rival, Adidas, just a few years later. Kanye said Nike was stifling his creative vision, and he felt like he wasn’t getting enough royalties.

Nike went public in 1980, and the first share sold at $22

Nike stock plummeted in the four years that followed the company’s initial public offering (IPO). The company’s deal with Michael Jordan in 1984 ultimately revived investor confidence.

Bill Bowerman brought running for fitness to America

Nike cofounder Bill Bowerman once cowrote a book with a doctor, W.E. Harris, called “Jogging.” Published in 1967 by New York, Grosset & Dunlap, it introduced America to the idea of running for health, instead of just sport—and kicked off the fitness frenzy of the 1970s that fueled Nike’s early success. (Some readers may experience a paywall).

The first shoes Jordan got from Nike were against NBA regulations

The initial mockups Nike gave Jordan were entirely black and red. The NBA had strict rules around shoe color at the time that these colors violated. The story goes that Nike paid the $5K fine for each game that Jordan wore the shoes in, but there’s no photographic evidence that Jordan ever wore them in a game at all. Regardless, Nike created the “banned” ad, capitalizing on the controversy.

A NASA engineer came up with the idea for the air-cushioned Nike Air shoes

Frank Rudy came to Nike with the idea of using air capsules in the soles of running shoes to provide better cushioning. The first shoe with this technology, the Tailwind, came out in 1979.

Nike’s slogan was inspired by a death row inmate’s last words

Advertising superstar Dan Wieden of legendary advertising agency Widen+Kennedy said he got inspiration for Nike’s “Just do it” from an inmate’s last words on death row. Wieden said the way the inmate talked about facing uncertainty inspired him.

Shaquille O’Neal showed up to a meeting with Nike wearing head-to-toe Reebok

Nike wanted to sign then-newcomer Shaquille O’Neill, but didn’t offer Shaq his own shoe because they had already signed Alonzo Mourning. Shaq said he felt like Nike didn’t understand his potential, and the company wouldn’t have given him as much creative control as Reebok would.

Stanford’s ‘How to Start a Startup’ series

Stanford’s archive of lectures about creating a startup includes advice from Y Combinator notables such as former YC president and OpenAI CEO Sam Altman and YC Cofounder Paul Graham.

Nike’s labor practices became controversial in the 1990s—leading to widespread protests of the brand

In the 1990s, Nike came under fire for its use of factories with unsafe working conditions and child labour to produce its products. While Nike didn’t own the manufacturing sites, many people felt Nike was ultimately responsible for using sweatshops in countries like Vietnam and Thailand.

Watch Bill Nye discuss biomechanics and sustainability while shopping for sneakers

While exploring sneaker history and technology, Nye covers the science of structural design, air bubbles and materials, including algae foam. He once voiced a 20-minute guided run on the Nike Run Club app.

Michael Jordan’s mother persuaded him to meet with Nike instead of Adidas

Michael Jordan wore Converse when he played at UNC Chapel Hill, but always wanted to wear Adidas when he went to the NBA. He tried to get Adidas to match Nike's $2.5M deal, but Adidas wouldn’t do it.

The NBA, explained

From humble beginnings in 1891, basketball transformed into the global juggernaut we know today. The NBA, established in 1949 and later revitalized by Commissioner David Stern in the 1980s, became a model for sports branding, player marketing, and international expansion.

The Beatles once sued Nike

Nike used The Beatles' "Revolution" in an ad, sparking a $15M lawsuit over the song's use. While The Beatles and Nike ultimately reached an agreement, Nike ushered in the modern practice of using hit songs in advertisements, as opposed to jingles or covers.

Nike made $126M in the first year of Air Jordan sales

The first pair of Air Jordans hit shelves in 1985 for $65. The company expected to sell $3M worth of shoes in the first three years, but ultimately blew past that goal in the first year of sales.

A Portland dive bar helped drive Pabst Blue Ribbon's early 2000s comeback by selling cans for $1 apiece.

Ray Kroc proposed the idea of franchising McDonald's as a way to sell more of his Multimixers 7 years before buying the McDonald's brothers out of the company for $2.7M.

Why Steve Jobs always wore the same outfit

Steve Jobs is well-known for his signature outfit: a black mock turtleneck and denim jeans. The outfit originated in Japan, where Jobs observed Sony employees all wearing matching uniforms. He proposed Apple employees do the same, but that idea was rejected. However, he still decided to create his own uniform.

Sam Altman gave his first-ever startup pitch after dropping out of Stanford

He dropped out of Stanford to start Loopt, which sold in 2012 for $43.4M. You can watch his first-ever startup pitch in a video.

Running became more popular in the mid-20th century

Once considered a fringe activity, running eventually became an American interest. The trend was spurred in part by the 1966 book "Jogging," which was cowritten by Bill Bowerman, the cofounder of Nike.

Many startup founders pull out-of-the-box stunts to get their businesses off the ground.

Colin Kaepernick’s ad with Nike won an Emmy

Colin Kaepernick’s 2018 “Dream Crazy” ad with Nike became a controversial touchpoint for American politics. While many liberals applauded Nike for siding with Kaepernick’s BLM protests, many conservatives boycotted and criticized the company.

David Stern had a hand in starting the WNBA

For years, NBA Commissioner David Stern had been planning for an NBA-supported women’s basketball league. When the US Women’s Basketball Team captured gold at the 1996 Olympic Games in Atlanta, he began putting them into motion.

The most expensive shoe ever sold is from Nike

A prototype of Kanye’s Air Yeezy’s from 2008 sold for $1.8M in 2021. Kanye West wore the shoes at a Grammys performance in 2008, and they became one of the most sought-after samples in sneaker history.

Chipotle was initially started to fund another restaurant

Founder Steve Ells was a chef at Stars, a tony restaurant in San Francisco. His original plan for Chipotle—which first opened in 1993 in Denver, Colorado—was to make enough money to open a separate, higher-end restaurant.

The original basketball was hand-sewn

When the first basketball landed in a peach basket in 1891, it didn't look like the leather Wilson ball you see on today's NBA courts. The basketball evolved from the nondribbling days, when a hand-sewn ball with stitching like a football was used.

New rules introduced in 2021 let college athletes profit from their name, image, and likeness.

How energy drink company Red Bull makes money

Red Bull was founded by Dietrich Mateschitz and is one of the world's most successful energy drink companies. The brand's value comes from its aggressive marketing efforts among students, nightlife, and sports figures, equating the consumption of one of its cans with excitement and athleticism.

David Stern brought the NBA to China

In 1987, he started shipping VHS tapes of games to state-run TV stations in China, and opened an NBA office there by 1992. Today, China is the league’s second-largest market.

Bill Nye holds patents for three inventions and designs for a digital abacus

His pointe shoes feature a support structure to protect ballet dancers' toes during performance. The throwing technique trainer guides athletes in achieving the optimal form for throwing a ball, while the educational magnifying glass made from a plastic bag and water featured on his show.

Ray Dalio started his career as a golf caddy in Long Island

When Dalio was 12 years old, he worked as a golf caddy at the Links Golf Club. That's where he heard about the stock market for the first time and decided to invest in Northeast Airlines—the only stock he knew that was selling for less than $5 a share. Dalio ended up tripling his profit and became fascinated with the stock market—ultimately laying the foundation for his legendary career as a hedge fund manager.

David Stern reimagined the NBA Draft to make it more competitive

When David Stern took over as commissioner in 1984, he watched multiple teams lose on purpose to get the top pick in a stellar draft class. The next season, Stern changed the process to a lottery, where every nonplayoff team has an equal chance at the first pick.

John Foley was the president of e-commerce at Barnes & Noble before founding Peloton

Foley worked for Barnes & Noble during the company's race against Amazon to dominate the e-reader market (Barnes & Noble had the Nook and Amazon had the Kindle). Foley says his time working for Barnes & Noble helped him learn the business of digital media, which is a core element of Peloton's business.

Beat Generation iconoclast William S. Burroughs once appeared in a Nike ad, singing the praises of 'new technology.'

Visa Founder Dee Hock abruptly left the credit card company in 1984, saying his inner voice told him that business, power, and money are not what life is about.

'My model for business is The Beatles: They were four guys that kept each others' negative tendencies in check; they balanced each other. And the total was greater than the sum of the parts.'

-Apple co-founder Steve Jobs (1955-2011)

Chuck Taylors were once the definitive basketball sneakers

Before Michael Jordan and the Air Jordans became the iconic shoe of the league, Chuck Taylor high tops were considered the best basketball sneaks. Need proof? The 1936 US Olympic team wore matching Converse.

Tony Hawk's rise from outsider to skateboarding legend

In this podcast, Tony Hawk discusses his path from being an outsider in a niche sport to becoming skateboarding's most recognizable figure—reflecting on competition dominance, business ventures, and lessons learned throughout his career.

Watch Ray Dalio's TED Talk on building an 'idea meritocracy'

In 2017, Dalio gave a TED Talk called "How to Build a Company Where the Best Ideas Win," which largely focused on Bridgewater's highly documented company culture and leadership principles. Dalio's TED Talk focused on one of his most well-known principles, "radical transparency," as a way to create an idea meritocracy.