Nike made retailers pay for Air Jordans upfront to guarantee stock

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.

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.

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.

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.

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

Nike cofounder Phil Knight’s original idea was to begin selling Japanese shoes, which were cheaper and just as light and durable as the leading German shoes from Adidas and Puma, at a lower price in the American market. His last assignment in business school at Stanford became the original business plan for Blue Ribbon Sports.

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.

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.

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.”

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 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.

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.

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.

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.

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

What is buy now, pay later?

The buy now, pay later industry allows consumers to buy something immediately and pay in installments, typically without the need for applications or credit scores associated with credit cards. BNPL has boomed in the last decade, led by fintech companies Affirm, Klarna, and Afterpay, which have targeted young adults. Some critics say BNPL is a reinvented version of payday loans that allow borrowers easy access to cash with relatively few barriers.

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.

Buy now, pay later loans typically split payments into 4 installments

While they're marketed as "interest-free" loans, BNPL loans often have penalties for late payments, such as late fees in varying amounts depending on the BNPL company used to make the purchase. BNPL users often pay 25% of the BNPL loan at checkout, and then pay the remaining balance in three more installments over the course of roughly six weeks, depending on the BNPL company and agreement.

The story of Klarna's IPO

BNPY company Klarna went public on the NYSE in September 2025, roughly 20 years after it was founded. At the time, Klarna made roughly three-quarters of its revenue via merchant fees, charging a small premium for each purchase.

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.

The story of Apple Pay Later, a short-lived BNPL service

Apple rolled out its own buy now, pay later service in 2023, but Apple shut it down the following year. Instead, Apple made changes to let its Apple Pay users make purchases and access installment loans through BNPL company Affirm.

BNPL companies typically make money via merchant fees rather than interest

When a merchant partners with a buy now, pay later app, consumers are more likely to spend more money with that merchant—meaning that the merchant is willing to pay a small fee in exchange for the ability for customers to pay with buy now, pay later.

What are repurchasing agreements?

Repurchasing agreements are short-term trade agreements in which a dealer sells securities and agrees to repurchase them at a higher price soon after (often within 1 to 2 days). This gives dealers quick access to cash and allows the purchasing party, often the Federal Reserve, to control liquidity in securities. This can be used to alter the money supply, which is a key element in combating deflation.

Buy now, pay later loans from 'BNPL' companies—which allow online shoppers to buy something immediately and pay for it in installments—are becoming more popular, with nearly half of millennials and Gen Zers using them.

In 2024, the league signed a 11-year deal with Disney, Amazon, and NBC Universal

The $2.2B deal was widely applauded in the media, but the Players Association questioned how the NBA arrived at the valuation and why the deal gives players less than 10% of total revenue compared to the NBA’s 50%.

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’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.

The BNPL industry boomed amid a surge in online shopping during pandemic-era lockdowns

The buy now, pay later industry allows consumers to buy something immediately and pay in installments without the need for lengthy application and approval processes or high credit scores—and fintech companies Affirm, Klarna, and Afterpay are leading the charge by targeting young adults.

Gap and Sephora now accept BNPL, despite paying up to 8% per sale

Despite these merchants paying roughly 2% to 8% of each sale's cost (more than they pay for most credit card processing fees), they're signing on, in part, because BNPL can help them improve their conversion rates at checkout.

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.

Some Nike shoes are actually making runners too fast

In 2018, Kenyan runner Eliud Kipchoge lowered the world marathon record to 2:01:39 in a pair of Nike Vaporflys. The unusually thick running shoes sparked controversy around the shoe regulations for professional runners.

Investors need a 'margin account' to short sell stock

Margin accounts are leveraged accounts through brokerage firms that allow investors to make trades without the full amount of capital on hand. Similar to a secured loan, margin accounts often require some form of collateral and typically have a cap on how much investors can borrow. However, trading with a margin account is much riskier than a traditional investment account. Fees and charged interest are due on margin accounts, regardless of trade performance, meaning it's possible for investors to lose more money than just their initial investment.

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 story of Klarna, founded in 2005 before BNPL was a category

Klarna was founded in 2005 in Sweden under the name Kreditor long before BNPL apps became commonplace. The podcast hosts interviewed founder and CEO Sebastian Siemiatkowski in 2024, where he shared the story of how he built the company.

Affirm's COO recently said that the company believes the credit card is 'going the way of the VHS tape'

Some people use buy now, pay later apps as an alternative to credit cards. BNPL services have a lower barrier to entry than credit cards—many frequent BNPL users have low credit scores.

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.

Patents arguably grant inventors monopolies for a short period of time

As a way to reward innovation, the government grants short-term monopolies on patented products. Patents block other companies from producing or selling that product, giving inventors the rights and opportunity to establish themselves in a market before other competitors enter.

Angel investors often receive significant equity because of the risk they take

Angel investors fund startups at an early stage, at which time a company’s success is less assured. In exchange, they often ask for a significant equity stake.

As of 2024, Macy’s wanted to monetize its store closures through real estate deals

In a 2024 earnings call, Macy’s noted that while it’s remodeling and investing in some of its brick-and-mortar locations, it seeks to shutter other stores in lower-performing locations. It’s estimated that Macy's will close 150 locations through 2026.

Book building is widely considered the most efficient way to price securities

During the book-building process, bankers determine an IPO’s price per share, requesting bids from fund managers and other institutional investors for the number of shares they want and how much they’d be willing to pay for them.

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.

A margin call is a way for traders to pay off debts by selling a security before they may be ready to do so.

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.

JCPenney offers an average Black Friday discount of 59%—higher than most other US retailers

This data visualization ranks retailers like Target, Walmart, Macy’s, and more by who has the best Black Friday deals on average. Specifically, the visualization uses data from 13 major US retailers in 2023.

Jet fuel is expensive—which is one reason why it's tough to make an airline profitable

Jet fuel is typically a commercial airline's second-largest expense, second only to labor. Oil prices can be volatile—there have been recent significant increases in jet fuel prices given the 2026 Iran conflict, for instance.

With the advent of charge cards, Estée Lauder fought to get her products in department stores to benefit from impulse purchases

Because Estée Lauder focused on personal relationships and demonstrations as one of her primary sales strategies, getting her product in front of enough people was an early struggle. Similarly, many customers wanted to buy her products, but didn't always have the cash on hand. One of her biggest accomplishments was earning a retail spot at Saks on 5th Ave in Manhattan, which paved the way for her brand to become a household name and gave customers more flexibility to make purchases on the spot.

Macy’s announced a series of pandemic-era store closures in January 2021

Specifically, as mall foot traffic declined, Macy’s sought to grow elsewhere (as did many other retailers around the same time).