About this episode In this captivating series, we delve into the hidden histories and overlooked details behind some of the world's most renowned companies. Through investigative storytelling, we uncover the truths often omitted from official narratives, revealing the struggles, controversies, and lesser-known facts that shaped these giants. Listeners will gain a deeper understanding of the realities behind the brand names, enriching their appreciation and critical perspective on corporate success.
0:00 In 1964, the company that would become Nike was founded with one goal: to sell Japanese shoes out of the trunk of a car.0:08 Right.0:08 And not even their own Japanese shoes.0:11 Last week on Unlaced, we talked about digging past the press releases of iconic companies, and Nike’s origin story is the absolute definition of that.0:21 Oh, completely.0:22 Everyone thinks of this global giant, the Swoosh, "Just Do It." But the real story starts with a different name—Blue Ribbon Sports—and a relationship that ends in a spectacular, litigious flameout.0:35 It starts with two guys from Oregon.0:37 Phil Knight, a decent but not-great runner, and his coach, the legendary Bill Bowerman.0:43 And their dynamic is key.0:45 Knight himself said Bowerman used him as a "guinea pig" for his weird shoe experiments.0:51 Because Bowerman was obsessed.0:53 He was a tinkerer, a mad scientist of footwear.0:56 He’d take shoes apart, glue different soles on, anything to shave a second off a lap time.1:02 He was NOT a businessman.1:04 No.1:04 And Knight was the hustler.1:06 He had this idea from a Stanford business class that he could import cheaper, high-quality shoes from Japan—specifically from a company called Onitsuka Tiger—and undercut the German brands that dominated the market.1:20 So Blue Ribbon Sports becomes Onitsuka's American distributor.1:24 And for a while, it works.1:26 Knight is selling shoes at track meets from his green Plymouth Valiant.1:31 They're scrappy.1:32 But this is where the clean story ends and the messy one begins.1:36 Right.1:37 Because Knight and Bowerman aren't just distributors.1:40 Bowerman keeps sending design ideas to Onitsuka.1:43 And one of them, which becomes the Cortez, is a massive hit.1:48 It's Blue Ribbon's best-selling shoe.1:50 And here's the turn.1:51 The relationship with Onitsuka sours.1:54 Knight feels they're being sidelined, that Onitsuka might cut them out.1:59 So, while he is still their number one US partner, he secretly starts his own company on the side.2:05 Wait—so he's using the profits from selling Onitsuka shoes to build a company that will eventually compete directly with them?2:14 Exactly.2:14 He even goes to their factories in Japan and, uh, essentially poaches their manufacturing contacts.2:21 He rebrands Blue Ribbon Sports as Nike, named after the Greek goddess of victory.2:26 He pays a student thirty-five dollars for a logo he doesn't even like that much—the Swoosh.2:33 That is… ruthless.2:34 So what happens with the Cortez?2:36 The shoe that Bowerman designed and Onitsuka manufactured?2:40 It's a total war.2:41 The partnership ends in 1971.2:43 Both companies claim they own the rights to the Cortez name and design.2:48 It goes to court.2:49 It's ugly.2:50 Onitsuka ends up paying over 100 million yen in legal fees and settlements.2:55 Nike gets to keep making their version.2:57 Wow.2:57 So Nike's first big win, the product that puts them on the map, is basically… stolen?3:03 Or at least, born from a brutal fight over intellectual property that they initiated while still in a partnership.3:11 That's the part they don't put in the commercials.3:14 Their first shoe under the Nike brand was actually a soccer cleat.3:19 But their identity was forged in that fight.3:22 It was a win-at-all-costs mentality, because for years they were perpetually on the brink of failure, just scrambling for cash.3:30 You know, Bowerman eventually created the iconic Waffle sole by pouring rubber into his wife's waffle iron.3:37 That’s the story everyone loves—the quirky innovation.3:41 But it feels like the real DNA of the company is that courtroom battle over the Cortez.3:47 I think you're right.3:48 The hustle, the willingness to break the rules, to secure victory no matter what.3:54 "Just Do It" wasn't a marketing slogan they invented in the eighties.3:58 It was their business plan from day one.4:01 It makes you look at that Swoosh a little differently.4:05 It’s not just a symbol of athletic achievement.4:08 It’s a mark of pure, relentless, and maybe a little bit dirty, survival.4:13 And it makes you wonder… in the race to build an empire, how many rules are you allowed to break before you cross the finish line?
