Overcoming cash flow problems, legal issues, tax issues, and political and commercial confrontation with the U.S. customs and government were merely side objectives to what Phil Knight (Buck) wanted to do ever since he graduated college and failed to become a professional runner.

What Buck wanted to do the most ever since he graduated, he even made his master's degree about it, was overcoming Adidas and Puma's domination in the American sports scene.

This post will be about how Nike not only outdid the other two brands in the United States of America but the world.

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In 1984, a young basketball player who went by the name Michael Jordan rose to the scene. Ever since he came up and was expected to succeed, he wanted to sign a professional deal with a sportswear company after he joins the NBA, that sportswear company was Adidas.

It is funny now looking back at this, but, Michael Jordan offered himself to Adidas and they declined.

Nike swooped in with a five-year sponsorship that would see them pay him 500,000 thousand dollars a year, also Michael Jordan would receive 5% of sales. They also offered him to have his own brand of shoes. Michael Jordan declined that offer as he still wanted Adidas.

The Most Profitable Compromise In Sport History

That's how I would describe what happened between Nike and Michael Jordan.

Buck and Nike didn't like how much they needed to give up to get Jordan's signature, especially after he snubbed them. Jordan wanted that Adidas deal so bad but he was rejected twice.

After the second rejection, Jordan signed for Nike. Nike produced the Air Jordan shoes. They were expecting it to make 3 million profit within the first 3-5 years. The result was not what either party expected.

Astonishing Success

In the first year alone, Nike made 126 million dollars worth of sales from the Air Jordan. Air Jordan became its own brand in Nike with influence not only in sport but also in fashion and culture.

The Jordan brand surpassed being just shoes, it became a clothing brand as well. Michael Jordan made approximately 20 times from the Jordan brand more than he made in his entire basketball (And baseball) career.

As of this year, the Jordan brand alone made 4.7 billion dollars in sales. That's not even the total, that's only in 2021.

In Conclusion

Nike's sales tactics, the Just Do It campaign, for example, took them to a whole higher level that surpasses Adidas by a long mile as they made around four times the sales of Adidas in 2021.

That's the story of Nike and Phil Knight, a story that started as merely an idea a Japanese man had during a World War 2 recovering Japan and a young man determined to overcome Adidas, a dream he eventually achieved.

This story could have ended and not even gotten mentioned in history at many different points starting from 1950 when a Japanese man could have given up at many different points before he started his own sports footwear company, all the way to Buck who dealt with many companies ending threats wisely and managed to overcome them all.

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Part 4
Part 5
Part 6

Below Are The Sources For The Entire Series

Bowerman and the Men of Oregon: The Story of Oregon's Legendary Coach and Nike's Co-founder - Kenny Moore

ADI DASsler’s “Impossible is Nothing” and “The Miracle of Bern”

The weird and wonderful history of the Onitsuka Tiger

The Family Feud That Led To Multiple Billion Dollar Businesses

Why Inspiration Matters

SHOE DOG: A MEMOIR BY THE CREATOR OF NIKE

How Blue Ribbon Sports Became Nike

Nike vs Adidas: Who is Leading the Market?

Sneaker Wars: How Nike Eclipsed Rival Adidas Over The Years And Who’s Winning Now

adidas vs. Nike: 3 Moments in History That Changed the Sneaker Game

Jordan Brand Leads Nike Resurgence in Sales and Shares