[45] The split will be the seventh in company history. After the Freeh Report was released on July 12, 2012, Nike CEO Mark Parker announced the name Joe Paterno would be removed immediately from the child development center. Their first products were track running shoes. [14], In its first year in business, BRS sold 1,300 pairs of Japanese running shoes grossing $8,000. Phil Knight is the richest person in Portland, Oregon with his $39 billion net worth. His confidence and counsel helped the company's original business model — importing and selling Japanese-made running shoes — succeed and grow. Nike also sells shoes for outdoor activities such as tennis, golf, skateboarding, association football, baseball, American football, cycling, volleyball, wrestling, cheerleading, aquatic activities, auto racing, and other athletic and recreational uses. They opened their first retail outlet in 1966 and launched the Nike brand shoe in 1972. In 2012, Nike carried a commercial partnership with the Asian Football Confederation. [153] Since the start of the 2015–16 season, Adidas has manufactured Manchester United's kit as part of a world-record 10-year deal worth a minimum of £750 million. The company that would become Nike was created in 1964 and they would open their first retail outlet in 1966. In the 1990s the company’s image briefly suffered from revelations about poor working conditions in its overseas factories. [77] [173], Phil Knight has invested substantial personal funds towards developing and maintaining the university's athletic apparatus. This moment took place on a Sunday in early 1971, when the eventual Nike company co-founder opened up his waffle iron and dumped a glop of liquid urethane in an attempt to explore a new traction idea. Later on that year, many protests occurred in big cities such as in Washington, DC and Boston in order to show public outcry for Nikes use of child labor and sweatshops. In 1967, due to increasing sales, BRS expanded retail and distribution operations on the East Coast, in Wellesley, Massachusetts. Additional product lines were introduced later, such as Air Huarache, which debuted in 1992. Nike sells an assortment of products, including shoes and apparel for sports activities like association football,[50] basketball, running, combat sports, tennis, American football, athletics, golf, and cross training for men, women, and children. [citation needed] By 1965, sales had reached $20,000. Prefontaine was the prized pupil of the company's co-founder, Bill Bowerman, while he coached at the University of Oregon. Robinson said the contract is a "wide endorsement" where Kaepernick will have his own branded line including shoes, shirts, jerseys and more. The story of Nike begins with the story of Blue Ribbon Sports back in 1964. [57][58] The Vaporfly series has a new technological composition that has revolutionized long-distance running since studies have shown that these shoes can improve run times up to 4.2%. Country: USA. In April 2014, one of the biggest strikes in mainland China took place at the Yue Yuen Industrial Holdings Dongguan shoe factory, producing amongst others for Nike. [159][160] On February 21, 2013, Nike announced it suspended its contract with South African limbless athlete Oscar Pistorius, due to his being charged with premeditated murder. [67], By the 1990s and 2000s, American and European teenagers[68] associated with the preppy[69] or popular clique[70] began combining these sneakers,[71] leggings, sweatpants, crop tops,[72] and tracksuits with regular casual chic[73] street clothes[74] such as jeans, skirts, leg warmers, slouch socks, and bomber jackets. 1999 Bill Bowerman, co-founder of Nike, dies on Dec. 24 at age 88. By the early 21st century, Nike had retail outlets and distributors in more than 170 countries, and its logo—a curved check mark called the “swoosh”—was recognized throughout the world. It officially became Nike Inc. in 1971. In November 2015, Nike announced it would initiate a $12 billion share buyback, as well as a two-for-one stock split, with shares to begin trading at the decreased price on December 24. Nike, Inc., American sportswear company headquartered in Beaverton, Oregon. Knight even wrote a paper on how quality shoes could b… Nike was founded in 1964 as Blue Ribbon Sports and initially operated as a distributor for the Japanese shoemaker Onitsuka Tiger (now known as Asics). Bill Bowerman was a nationally-renowned track and field coach at the University of Oregon. Dutch law treats income earned by a CV as if it had been earned by the principals, who owe no tax in the Netherlands if they do not reside there. [163] Some have had signature shoes designed for them, including Kobe Bryant, Jason Kidd, Vince Carter and more recently LeBron James, Kevin Durant and Paul George, among others. The company takes its name from Nike, the Greek goddess of victory. [169], Nike maintains strong ties, both directly and through partnerships with Phil Knight, with the University of Oregon. [120] Nike's decision was praised by others due to the use of the flag by white nationalists,[119] but the Anti-Defamation League's Center on Extremism has declined to add the flag to its database of "hate symbols. [27], Phil Knight announced in mid-2015 that he would step down as chairman of Nike in 2016. Similar to Takahashi, Acronym co-founder Errolson Hugh’s relationship with Nike is two-fold: as an individual and as a brand. [156], Nike has sponsored Tiger Woods for much of his career, and remained on his side amid the controversies that shaped the golfer's career. Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of Oregon track athlete Phil Knight and his coach, Bill Bowerman, on January 25, 1964. The city attempted to forcibly annex Nike's headquarters, which led to a lawsuit by Nike, and lobbying by the company that ultimately ended in Oregon Senate Bill 887 of 2005. [171] New unique combinations are issued before every game day. September 02, 2015 – Nike co-founder Bill Bowerman's quest to create footwear to improve athlete performance is a driving force for Nike's ever-evolving approach to product innovation. Brand's commercial success in the sport went hand in hand with the endorsement deals signed with the biggest and the world's most charismatic stars and number one ranked players of the subsequent eras, including John McEnroe in the 1980s, Andre Agassi and Pete Sampras in the 1990s and Roger Federer, Rafael Nadal, Serena Williams and Maria Sharapova with the start of the XXI century. Full Name: Philip H Knight. As of July 23, 2020, Knight was ranked by Forbes as the 26th richest person in the world, with an estimated net worth of US$39.2 billion. [58] In the middle of the ZoomX foam there is a full-length carbon fiber plate "designed to generate extra spring in every step". Vietnam Labor Watch, an activist group, has documented that factories contracted by Nike have violated minimum wage and overtime laws in Vietnam as late as 1996, although Nike claims that this practice has been stopped. [126], Some of the major changes in the guidelines that have come about as a result of these criticisms include that the "sole must be no thicker than 40mm" and that "the shoe must not contain more than one rigid embedded plate or blade (of any material) that runs either the full length or only part of the length of the shoe. [64] Limited edition sneakers and prototypes with a regional early release were known as Quickstrikes,[65] and became highly desirable items[66] for teenage members of the sneakerhead subculture. He then went on to get an MBA from Stanford. Nike's first professional athlete endorser was Romanian tennis player Ilie Năstase. How Was Nike Founded? [84], Nike have introduced a premium line, focused more on streetwear than sports wear called NikeLab. In August 2014, Nike announced that they will not renew their kit supply deal with Manchester United after the 2014–15 season, citing rising costs. According to Davis, "I told Tom Brokaw that I was the first. It is correctly pronounced ‘ny-kee’ … As of May 31, 2009, Nike, Inc. operated 338 retail stores in the United States and 336 retail stores internationally. Particularly popular[citation needed] were the unisex spandex Nike Tempo compression shorts[75] worn for cycling and running, which had a mesh lining, waterproofing, and, later in the 2000s, a zip pocket for a Walkman or MP3 player.[76]. Our editors will review what you’ve submitted and determine whether to revise the article. [142] Unlike previous deals, Nike's logo appear on NBA jerseys – a first for the league. Also, the sales of personal training apps grew by 80% in China.[48]. [137], That same year, Apple Records sued Nike Inc., Capitol Records Inc., EMI Records Inc. and Wieden+Kennedy for $15 million. In 1990s, Nike has received unending criticism[94] for its use of sweatshops. It wasn't until May 30 th , 1971 that the company took the name Nike, which is the name of the Greek goddess of victory. BRS prepared to launch its own line of footwear, which was rebranded as Nike, and would bear the Swoosh newly designed by Carolyn Davidson. [28][29] He officially stepped down from all duties with the company on June 30, 2016. [114], During the following week, Nike's stock price fell 2.2%, even as online orders of Nike products rose 27% compared with the previous year. [53] Some of Nike's newest shoes contain Flywire and Lunarlite Foam to reduce weight. [43], On December 19, 2013, Nike's quarterly profit rose due to a 13 percent increase in global orders for merchandise since April of that year. [22] Walt Stack was featured in Nike's first "Just Do It" advertisement, which debuted on July 1, 1988. Fox Foundation. As of 2020, it employed 76,700 people worldwide. [175], The Nike Community Ambassador Program, allows Nike employees from around the world to go out and give to their community. The company was founded by Bill Bowerman and Phil Knight in 1972 and is headquartered in Beaverton, Oregon. Lebron James was given the Slogan "We are All Witnesses" when he signed with Nike. [142] The only exception is the Charlotte Hornets, owned by longtime Nike endorser Michael Jordan, which instead uses the Jumpman logo associated with Jordan-related merchandise. Founded in 1964, the company has its headquarters in Beaverton, Oregon. Bill Bowerman made the first pair of shoes for me. A July 2011 Associated Press article stated that employees at the company's plants in Indonesia reported constant abuse from supervisors. For other uses of the name "Nike", see, This list includes companies that produce sports equipment. Omissions? [129], A campaign that Nike began for Earth Day 2008 was a commercial that featured basketball star Steve Nash wearing Nike's Trash Talk Shoe, which had been constructed in February 2008 from pieces of leather and synthetic leather waste from factory floors. However, due to harsh criticism from some organizations like CorpWatch, Nike has disclosed information about its contract factories in its Corporate Governance Report. [36] In 2003, Nike paid US$309 million to acquire sneaker company Converse. In June 2018, Nike announced it would initiate a $15 billion share buyback over four years, to begin in 2019 upon completion of the previous buyback program. Sports, Kaepernick and Nike agreed to a new contract despite the fact Kaepernick has been with the company since 2011 and said that "interest from other shoe companies" played a part in the new agreement. 2002 Rap Star Nelly releases a chart topping song about Air Force Ones. [54] The Air Zoom Vomero running shoe, introduced in 2006 and currently in its 11th generation, featured a combination of groundbreaking innovations including a full-length air cushioned sole,[55] an external heel counter, a crashpad in the heel for shock absorption, and Fit Frame technology for a stable fit. The components of the shoes are not the only thing that had major changes; starting April 30, 2020, "any shoe must have been available for purchase by any athlete on the open retail market (online or in store) for a period of four months before it can be used in competition". Nike was founded in 1971 by Phil Knight and Bill Bowerman. Similar to "Air Jordan", LeBron's brand became massively popular. [15], By 1971, the relationship between BRS and Onitsuka Tiger came to an end. Published letter between NIKE to Philip H. Knight, According to a July 28, 1987 article written by the, Learn how and when to remove this template message, Nike Vaporfly and Tokyo 2020 Olympics Controversy, University of North Carolina at Chapel Hill, "The Swoon of the Swoosh" by Timothy Egan, It's official: Nike rhymes with spiky – and you're saying all these wrong too", https://static.independent.co.uk/s3fs-public/thumbnails/image/2014/06/02/10/nikey.JPG, "Nike profit up but shares tumble on U.S. concerns", "Most Valuable Apparel Brand? Nike, Inc. (/ˈnaɪki/)[note 1][3] is an American multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. [56], The Nike Vaporfly first came out in 2017 and their popularity, along with its performance, prompted a new series of running shoes. Nike Introduces Nike + Nike introduces Nike+ which syncs to an ipod and can caluculate how much you run. Be on the lookout for your Britannica newsletter to get trusted stories delivered right to your inbox. Ronaldo’s immense marketability was at the centre of a legal issue that arose in June 2017. At Nike, we serve athletes...billions of them. [172], More recently, the corporation donated $13.5 million towards the renovation and expansion of Hayward Field. The first was for "The Morning After," a satirical look at what a runner might face on the morning of January 1, 2000, if every dire prediction about the Y2K problem came to fruition. [42] As of 2020, Nike owns only one subsidiary: Converse Inc. Nike was made a member of the Dow Jones Industrial Average in 2013, when it replaced Alcoa. [25] In 1990, Nike moved into its eight-building World Headquarters campus in Beaverton, Oregon. He was a track enthusiast and worked to improve the performance of his athletes. [103][104][105], Appleby documents detail how Nike boosted its after-tax profits by, among other maneuvers, transferring ownership of its Swoosh trademark to a Bermudan subsidiary, Nike International Ltd. His first shipment of Tiger shoe samples arrive in January 1964. There was no support and they were too tight. [123] Prior to these new guidelines World Athletics reviewed the Vaporfly shoes and "concluded that there is independent research that indicates that the new technology incorporated in the soles of road and spiked shoes may provide a performance advantage" and that it recommends further research to "establish the true impact of [the Vaporfly] technology. [136], Nike was criticized for its use of the Beatles song "Revolution" in a 1987 commercial against the wishes of Apple Records, the Beatles' recording company. [145], Nike has also sponsored many other successful track and field athletes over the years, such as Sebastian Coe, Carl Lewis, Jackie Joyner-Kersee, Michael Johnson and Allyson Felix. [106] Although the subsidiary was effectively run by executives at Nike's main offices in Beaverton, Oregon—to the point where a duplicate of the Bermudan company's seal was needed—for tax purposes the subsidiary was treated as Bermuda. The buyer was Miles Nadal, a Canadian investor and car collector, who had just paid $850,000 for a group of 99 rare of limited collection pairs of sport shoes. The campaign's mission is to prevent the transmission of the HIV virus from mother to child by 2015 (the campaign's byline is "Fighting For An AIDS Free Generation"). [96], As of July 2011, Nike stated that two-thirds of its factories producing Converse products still do not meet the company's standards for worker treatment. Sources for this criticism include Naomi Klein's book No Logo and Michael Moore documentaries. Under that bill's terms, Beaverton is specifically barred from forcibly annexing the land that Nike and Columbia Sportswear occupy in Washington County for 35 years, while Electro Scientific Industries and Tektronix receive the same protection for 30 years. [58][125] According to Nike funded research, the shoes can improve efficiency by up to 4.2%[58] and runners who have tested the shoe are saying that it causes reduced soreness in the legs; sports technologist Bryce Dyer attributes this to the ZoomX and carbon fiber plate since it absorbs the energy and "spring[s] runners forward". This transfer allowed the subsidiary to charge royalties to its European headquarters in Hilversum, Netherlands, effectively converting taxable company profits to an account payable in tax-free Bermuda. Nike has been criticized for contracting with factories (known as Nike sweatshops) in countries such as China, Vietnam, Indonesia and Mexico. [172], In 2012, Nike is listed as a partner of the (PRODUCT)RED campaign together with other brands such as Girl, American Express, and Converse. Nike Just Does It Again", "Fortune 500 Companies 2018: Who Made the List", "How Nike almost ended up with a very different name", "Nike sells Bauer Hockey for $200 Million", "11 Things Hardly Anyone Knows About Nike", "11 Things Hardly Anyone Knows About Nike. [146], Nike is a major sponsor of the athletic programs at Penn State University and named its first child care facility after Joe Paterno when it opened in 1990 at the company's headquarters. [5] In 2020 the brand alone was valued in excess of $32 billion, making it the most valuable brand among sports businesses. By signing up for this email, you are agreeing to news, offers, and information from Encyclopaedia Britannica. Nike was an early adopter of internet marketing, email management technologies, and using broadcast and narrowcast communication technologies to create multimedia marketing campaigns. "[123], In 2007, New England-based environmental organization Clean Air-Cool Planet ranked Nike among the top three companies (out of 56) in a survey of climate-friendly companies. Oct 15, 2013. Moreover, he established his own successful “CR7” brand of products that included shoes, underwear, and fragrances. Find Nike brand history in detail in the brand story section. They continued the growth in the sport by signing more top players including: Ronaldo, Ronaldinho, Francesco Totti, Thierry Henry, Didier Drogba, Andrés Iniesta, Wayne Rooney and still have many of the sport's biggest stars under their name, with Cristiano Ronaldo, Zlatan Ibrahimović, Neymar, Harry Kane, Eden Hazard and Kylian Mbappé among others.[151]. Nearly all of the items are manufactured b y independent contractors, primar… In the United States, Nike products are sold through about 22,000 retail accounts; worldwi de, the company's products are sold in more than 160 countries. Addresses Workplace Behavior Complaints", "Nike Taps EBay Veteran John Donahoe to Succeed Parker as CEO", "Nike confirms that it is no longer selling its products on Amazon", "Hockey Fan, and Investor, Buys Bauer From Nike", "Bob Hurley: Success built on everyone's inner surfer", "Iconix Brand Buys Nike's Umbro Soccer Unit for $225 Million", "After Umbro, Nike Turns to Cole Haan Sale", "Alcoa's CEO Is Remaking the Industrial Giant", "Nike Fiscal 2nd-Quarter Profit Jumps 40 Percent", "What Nike's Two-For-One Stock Split Means for the Dow", "Nike surges after beating on earnings and announcing $15 billion in buybacks (NKE) | Markets Insider", "Nike turns to digital sales during China shutdown", "Nike launches cricket shoe Air Zoom Yorker", "Nike Air Zoom Control II FS Futsal Shoes at Soccer Pro", "Devices That Tell On You: The Nike+iPod Sport Kit", "Latest materials improve sportswear performance", "Factbox: Nike's Vaporfly running shoes and tumbling records", "Nike Vaporfly Shoes Won't Be Banned From Olympics", "Nike Vaporfly. 2000 Introduction of the Shox athletic shoe technology. for a wide range of sports, including track and field, baseball, ice hockey, tennis, association football (soccer), lacrosse, basketball, and cricket. Knight ran track at the University of Oregon and created Nike shoes with his former track coach, Bill Bowerman. [19] The following year, the agency created the first "brand ad" for Nike, called "There is no finish line", in which no Nike product was shown. [157] In January 2013, Nike signed Rory McIlroy, the then No 1 golfer in the world to a 10-year sponsorship deal worth $250 million. Nike founder Phil Knight reached a deal with Onitsuka Company, a Japanese shoe manufacturer, to allow him to distribute their Tiger running shoes in the Western United States. They currently also make shoes, jerseys, shorts, cleats, baselayers, etc. Nike co-founder and Chairman Emeritus Phil Knight donated more than $900 million to the Knight Foundation, which he established in 1997 with his wife, Penelope. It is the world's largest supplier of athletic shoes and apparel[4] and a major manufacturer of sports equipment, with revenue in excess of US$37.4 billion in its fiscal year 2020 (ending May 31, 2020). In late June 2005, Nike received criticism from Ian MacKaye, owner of Dischord Records, guitarist/vocalist for Fugazi and The Evens, and front man of the defunct punk band Minor Threat, for appropriating imagery and text from Minor Threat's 1981 self-titled album's cover art in a flyer promoting Nike Skateboarding's 2005 East Coast demo tour.[138]. The deal required all franchise team members to wear jerseys and shorts with the Swoosh logo, beginning with the 2017/18 season. [97], During the 1990s, Nike faced criticism for the use of child labor in Cambodia and Pakistan in factories it contracted to manufacture soccer balls. This article was most recently revised and updated by, https://www.britannica.com/topic/Nike-Inc, American Studies at the University of Virginia - Nike History and Timeline. Nike has recently introduced cricket shoes called Air Zoom Yorker, designed to be 30% lighter than their competitors'. [91] Most of the factories are located in Asia, including Indonesia, China, Taiwan, India,[92] Thailand, Vietnam, Pakistan, Philippines, and Malaysia. The model was subsequently withdrawn after Colin Kaepernick told the brand he and others found the flag offensive because of its association with slavery. [129] This program is Nike's longest-running program that benefits both the environment and the community by collecting old athletic shoes of any type in order to process and recycle them. Called the Nike Mag, which are replicas of the shoes featured in Back to the Future Part II, it had a preliminary limited release, only available by auction with all proceeds going to the Michael J. Nike has only made one statue of its sponsored athletes and it is of Steve Prefontaine. Nike introduces the Fuel band You might like: U.S. History. The material that is produced is then used to help create sports surfaces such as basketball courts, running tracks, and playgrounds. Nike promotes its products through sponsorship agreements with celebrity athletes, professional teams and college athletic teams. The company initially operated in Eugene, Oregon as a distributor for Japanese shoe maker Onitsuka Tiger, making most sales at track meets out of Knight's automobile. The College of the Ozarks removed Nike from all their athletic uniforms in response. In 1996 the company created Nike ACG (“all-conditions gear”), which markets products for extreme sports such as snowboarding and mountain biking. Featuring the new Vaporfly NEXT%", Aaliyah, Nino Brown and Freddy Kruger socks, "The Michael J. On June 27, Nike Skateboarding's website issued an apology to Dischord, Minor Threat, and fans of both and announced that they have tried to remove and dispose of all flyers. Both Bowerman and Knight felt that shoe technology could be improved. [13], According to Otis Davis, a University of Oregon student athlete coached by Bowerman and Olympic gold medalist at the 1960 Summer Olympics, his coach made the first pair of Nike shoes for him, contradicting a claim that they were made for Phil Knight. 89 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.[8]. [123] These updates came in response to criticisms concerning technology in the Nike Vaporfly running shoes, which had been submitted beginning around 2017–2018. [170] Tinker Hatfield, who also redesigned the university's logo, leads this effort. While the product generates useful statistics, it has been criticized by researchers who were able to identify users' RFID devices from 60 feet (18 m) away using small, concealable intelligence motes in a wireless sensor network. Its profits were not declared in Europe and came to light only because of a mostly unrelated case in US Tax Court, where papers filed by Nike briefly mention royalties in 2010, 2011 and 2012 totaling $3.86 billion. The company was renamed Nike, Inc., in 1978 and went public two years later. [37] The company acquired Starter in 2004[38] and soccer uniform maker Umbro in 2007.[39]. Pebax foam can also be found in airplane insulation and is "squishier, bouncier, and lighter" than foams in typical running shoes. On 30th May 1978, Nike, Inc. became official. It was founded in 1964 as Blue Ribbon Sports by Bill Bowerman, a track-and-field coach at the University of Oregon, and his former student Phil Knight. [162] After the success of partnership with Jordan, which resulted in the creation of the unique Air Jordan brand, Nike has continued to build partnership with the biggest names in basketball. Upon changing its name to Nike, Inc. on May 30, 1971, the company adopted the Swoosh as its official logo the same year. [35] The company sold Umbro in 2012 [41] and Cole Haan in 2013. Future orders of shoes or clothes for delivery between December and April, rose to $10.4 billion. [59], The Nike brand, with its distinct V-shaped logo, quickly became regarded as a status symbol[60] in modern urban fashion and hip-hop fashion[61] due to its association with success in sport. The purchase price was the highest for one pair of sneakers, the previous record being $190,373 in 2017 for a pair of signed Converse shoes in California, said to have been worn by Michael Jordan during the 1984 basketball final of the Olympics that year. Updates? Yue Yuen did underpay an employee by 250 yuan (40.82 US Dollars) per month. Tetra is purchased by Nike, ensuring its role as the sole supplier of Air sole cushioning materials to Nike worldwide. In 2001, a BBC documentary uncovered occurrences of child labor and poor working conditions in a Cambodian factory used by Nike. Nike shares (NKE) rose 0.6 percent to $78.75 in extended trading.[44]. [86] Another significant development at this time was the Chuck Taylor All-Star Modern, an update of the classic basketball sneaker that incorporated the circular knit upper and cushioned foam sole of Nike's Air Jordans.