Phil Knight
Encyclopedia
Philip Hampson "Phil" Knight (born February 24, 1938) is an American business magnate
Business magnate
A business magnate, sometimes referred to as a capitalist, czar, mogul, tycoon, baron, oligarch, or industrialist, is an informal term used to refer to an entrepreneur who has reached prominence and derived a notable amount of wealth from a particular industry .-Etymology:The word magnate itself...

. He is the co-founder and Chairman of Nike, Inc.
Nike, Inc.
Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area...

 He resigned as the company's chief executive officer in 2004, while retaining the position of chairman of the board. As of 2011, Knight's stake in Nike gives him an estimated net worth of US$13.1 billion
1000000000 (number)
1,000,000,000 is the natural number following 999,999,999 and preceding 1,000,000,001.In scientific notation, it is written as 109....

, making him the 60th richest person in the world and the 22nd richest American.

A graduate of the University of Oregon
University of Oregon
-Colleges and schools:The University of Oregon is organized into eight schools and colleges—six professional schools and colleges, an Arts and Sciences College and an Honors College.- School of Architecture and Allied Arts :...

 and Stanford Graduate School of Business
Stanford Graduate School of Business
The Stanford Graduate School of Business is one of the professional schools of Stanford University, in Stanford, California and is broadly regarded as one of the best business schools in the world.The Stanford GSB offers a general management Master of Business Administration degree, the Sloan...

, he has donated hundreds of millions of dollars to the schools. Knight gave the largest donation in history at the time to Stanford's business school in 2006. A native Oregonian, he ran track for coach Bill Bowerman
Bill Bowerman
William Jay "Bill" Bowerman was an American track and field coach and co-founder of Nike, Inc. Over his career, he trained 31 Olympic athletes, 51 All-Americans, 12 American record-holders, 24 NCAA champions and 16 sub-4 minute milers...

 at the University of Oregon, with whom he would co-found Nike.

Early years

Phil Knight was born February 24, 1938 in Portland, Oregon
Portland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...

, the son of a lawyer and future newspaper publisher. Knight attended Cleveland High School in Portland, and then the University of Oregon in Eugene
Eugene, Oregon
Eugene is the second largest city in the U.S. state of Oregon and the seat of Lane County. It is located at the south end of the Willamette Valley, at the confluence of the McKenzie and Willamette rivers, about east of the Oregon Coast.As of the 2010 U.S...

, where he was a member of Phi Gamma Delta
Phi Gamma Delta
The international fraternity of Phi Gamma Delta is a collegiate social fraternity with 120 chapters and 18 colonies across the United States and Canada. It was founded at Jefferson College, Pennsylvania, in 1848, and its headquarters are located in Lexington, Kentucky, USA...

 ("FIJI") fraternity and earned a journalism degree in 1959. He was a middle-distance runner at the school under track coach Bill Bowerman and ran a personal best 4:10 mile, winning varsity letter
Varsity letter
A varsity letter is an award earned in the United States for excellence in school activities. A varsity letter signifies that its winner was a qualified varsity team member, awarded after a certain standard was met.- Description :...

s for track in 1957, 1958, and 1959.

Budding entrepreneur

Right after graduating from Oregon, Knight enlisted in the Army and served one year on active duty and seven years in the Army Reserve
United States Army Reserve
The United States Army Reserve is the federal reserve force of the United States Army. Together, the Army Reserve and the Army National Guard constitute the reserve components of the United States Army....

. After the year of active duty, he enrolled at Stanford Graduate School of Business
Stanford Graduate School of Business
The Stanford Graduate School of Business is one of the professional schools of Stanford University, in Stanford, California and is broadly regarded as one of the best business schools in the world.The Stanford GSB offers a general management Master of Business Administration degree, the Sloan...

. In Frank Shallenberger's Small Business class, Knight developed a love affair with something besides sports — he discovered he was an entrepreneur. Knight recalls in a Stanford Magazine article "That class was an 'aha!' moment" ... "Shallenberger defined the type of person who was an entrepreneur--and I realized he was talking to me. I remember after saying to myself: 'This is really what I would like to do.' " In this class Knight needed to create a business plan. His paper, "Can Japanese Sports Shoes Do to German Sports Shoes What Japanese Cameras Did to German Cameras?", essentially was the premise to his foray into selling running shoes. He graduated with a Masters of Business Administration from the school in 1962.

Knight set out on a trip around the world after graduation, during which he made a stop in Kobe
Kobe
, pronounced , is the fifth-largest city in Japan and is the capital city of Hyōgo Prefecture on the southern side of the main island of Honshū, approximately west of Osaka...

, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

 in November 1962. It was there he discovered Tiger brand running shoes, manufactured in Kobe by the Onitsuka Co. So impressed with the quality and low cost, Knight made a cold call on Mr. Onitsuka, who agreed to meet with him. By the end of the meeting, Knight had secured distribution rights for the western United States for Tiger running shoes.

The first Tiger samples would take more than a year to be shipped to Knight, during which time he found a job as an accountant in Portland, Oregon. When Knight finally received the shoe samples, he mailed two pairs to Bill Bowerman in Eugene in the hope of gaining a sale and an influential endorsement. To Knight's surprise, Bowerman not only ordered the Tiger shoes, he offered to become a partner with Knight and would provide some design ideas for better running shoes. The two men shook hands on a partnership on January 25, 1964, the birthdate of Blue Ribbon Sports, forerunner to Nike.

Nike's origin

Knight's first sales were made out of a now legendary green Plymouth Valiant
Plymouth Valiant
The Plymouth Valiant is an automobile manufactured by the Plymouth division of Chrysler Corporation in the United States from 1960 to 1976. It was created to give the company an entry in the compact car market emerging in the late 1950s...

 at track meets across the Pacific Northwest
Pacific Northwest
The Pacific Northwest is a region in northwestern North America, bounded by the Pacific Ocean to the west and, loosely, by the Rocky Mountains on the east. Definitions of the region vary and there is no commonly agreed upon boundary, even among Pacific Northwesterners. A common concept of the...

. By 1969, these early sales allowed Knight to leave his accountant job and work full time for Blue Ribbon Sports.

It was Jeff Johnson, a friend of Knight's, who suggested the name Nike. Nike is named after the Greek winged goddess of victory
Nike (mythology)
In Greek mythology, Nike was a goddess who personified victory, also known as the Winged Goddess of Victory. The Roman equivalent was Victoria. Depending upon the time of various myths, she was described as the daughter of Pallas and Styx and the sister of Kratos , Bia , and Zelus...

. Nike's logo, now considered one of the most powerful logos in the world, was commissioned for a mere $35 from Carolyn Davidson
Carolyn Davidson
Carolyn Davidson is a graphic designer best known as the creator of the Nike "swoosh".Davidson designed the swoosh in 1971 while a graphic design student at Portland State University. Phil Knight, who was teaching an accounting class at the university, noticed Davidson working on an assignment, and...

. According to Nike's website, Knight stated "I don't love it, but it will grow on me." However, in 1983 (Nike went public in 1980), Davidson was given an undisclosed amount of Nike stock for her contribution to the company's brand.

Labor issues

Knight was named a "Corporate Crook" in Michael Moore
Michael Moore
Michael Francis Moore is an American filmmaker, author, social critic and activist. He is the director and producer of Fahrenheit 9/11, which is the highest-grossing documentary of all time. His films Bowling for Columbine and Sicko also place in the top ten highest-grossing documentaries...

's 1996 book Downsize This!
Downsize This!
Downsize This! Random Threats from an Unarmed American is a book by American author and producer Michael Moore.The book is a look at the state of business and industry in the United States and the power they hold over the U.S. government...

. The book cited the harsh conditions in Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...

n sweatshop
Sweatshop
Sweatshop is a negatively connoted term for any working environment considered to be unacceptably difficult or dangerous. Sweatshop workers often work long hours for very low pay, regardless of laws mandating overtime pay or a minimum wage. Child labour laws may be violated. Sweatshops may have...

s, where pregnant women and girls as young as fourteen years old sewed shoes for factories that the company contracted to make its products. Moore went to Knight in the hopes of convincing him to fix this problem. The interview can be seen in Moore's film The Big One
The Big One (film)
The Big One is a movie filmed in 1996—and released in 1998 by Miramax Films—by Michael Moore during his promotion tour around the United States for his book Downsize This!...

 – of the nearly 20 CEOs that Moore wished to interview for his movie, only Knight agreed to speak with Moore.

When questioned by Moore as to why no shoes were made in the United States, Knight responded that he was convinced Americans weren't interested in producing shoes. Moore responded with a challenge: if he could find 500 residents from his hometown of Flint, Michigan who were willing to work in a Nike factory, then Nike would create a factory there. Knight accepted the challenge by saying he would seriously consider it. However, when Moore provided video evidence showing residents of Flint enthusiastically promising to work for a Nike factory, Knight backed down saying he would never seriously consider opening a factory there. Knight informed Moore that Nike does not own any of the factories that make its products. Knight told Moore if he was willing to invest in and build a factory in the U.S. that could match the price of footwear made overseas, Nike would consider buying shoes from him.

In 1998, Knight pledged to impose more stringent standards for the factories that Nike engages to manufacture its goods, including minimum age standards, factory monitoring, and greater external access to Nike's practices.

Philanthropy

In 2000, Knight was inducted into the Oregon Sports Hall of Fame
Oregon Sports Hall of Fame
The Oregon Sports Hall of Fame honors Oregon athletes, teams, coaches, and others who have made a significant contribution to sports in Oregon. The first class was inducted in 1980, with new inductees added in the fall...

 for his Special Contribution to Sports in Oregon. Knight is believed to have contributed approximately $230 million to the University of Oregon, the majority of which was for athletics. On August 18, 2007, Knight announced that he and his wife, Penny, would be donating an additional $100 million to the University of Oregon Athletics Legacy Fund. This donation is reportedly the largest in the University's history.

His significant contributions have granted him influence and access atypical of an athletic booster. In addition to the "best seats in the house" for any U of O athletic event, he has his own personalized locker in the football team's locker room, and an athletic building named for him (the library is named for his mother, the law school is named for his father, and the basketball team home, the Matthew Knight Arena, is named for his son).

However, Knight's contributions to the Athletic department at U of O have not come without controversy.

Controversy surrounding Nike's labor practices precipitated protests in 2000 led by a group of students calling themselves the Human Rights Alliance. Protests included a 10 day tent city occupation of the lawns in front of Johnson Hall, the main administration building, demanding the university join the Worker Rights Consortium
Worker Rights Consortium
The Worker Rights Consortium is an independent labor rights monitoring organization focused on protecting the rights of workers who sew apparel and make other products sold in the United States, particularly those bearing college or university logos...

 which was founded by United Students Against Sweatshops
United Students Against Sweatshops
United Students Against Sweatshops is a student organization with chapters at over 250 colleges and universities in the United States and Canada. In April 2000, USAS founded the Worker Rights Consortium , an independent monitoring organization that investigates labor conditions in factories that...

.

University President Dave Frohnmayer signed a one year contract with the WRC. Phil Knight's reaction was to withdraw a previous $30 million commitment toward the Autzen Stadium expansion project and offer no further donations toward the University. Nike had endorsed the industry-supported Fair Labor Association
Fair Labor Association
The Fair Labor Association , a non-profit labor rights organization, is a multi-stakeholder initiative bringing together companies, colleges and universities, and civil society organizations to improve working conditions worldwide by promoting adherence to international and national labor laws...

, instead. In a public statement, Phil Knight criticized the WRC for having unrealistic provisions and called it misguided while praising the FLA for being "balanced" in its approach. The students disagreed, saying the FLA has conflicting interests, but President Frohnmayer sided with Knight that the WRC provides unbalanced representation.

Citing a legal opinion from the University Counsel, President Frohnmayer in October 2000, released a statement saying that the University could not pay its membership dues for the WRC since the WRC was neither an incorporated entity nor had tax-exempt status and to do so was a violation of state law. The Oregon University System
Oregon University System
The Oregon University System consists of seven public, four-year universities in the State of Oregon administered by the Chancellor of the OUS, who is appointed by the Oregon State Board of Higher Education...

 on February 16, 2001 enacted a mandate that all institutions within the OUS choose business partners from a politically neutral standpoint, barring all universities in Oregon from membership in the WRC and the FLA. Following the dissolved relationship between the university and the WRC, Phil Knight reinstated the donation and increased the amount to over $50 million dollars.

Also controversial was Knight's successful lobbying to have his friend and former insurance salesman, Pat Kilkenny, named as Athletic Director. Kilkenny, another wealthy athletic booster, has neither a college degree nor any germane experience. Kilkenny attended but did not graduate from the University of Oregon, leaving the school several hours short of completion. The former chairman and chief executive officer of the San Diego-based Arrowhead General Insurance Agency, he grew his business into a nationwide organization with written premiums of nearly $1 billion when he sold the company in 2006. ESPN's Outside the Lines
Outside the Lines
Outside the Lines, or also referred to as OTL, is an American television program on ESPN that looks "outside the lines" and examines critical issues in American sports on and off the field of play....

spotlighted Knight and his donation-backed influence on U of O athletics on an April 6, 2008 episode.

In 2006, Phil Knight donated $105 million to Stanford Graduate School of Business
Stanford Graduate School of Business
The Stanford Graduate School of Business is one of the professional schools of Stanford University, in Stanford, California and is broadly regarded as one of the best business schools in the world.The Stanford GSB offers a general management Master of Business Administration degree, the Sloan...

, at the time the largest donation to a business school
Business school
A business school is a university-level institution that confers degrees in Business Administration. It teaches topics such as accounting, administration, economics, entrepreneurship, finance, information systems, marketing, organizational behavior, public relations, strategy, human resource...

 in history. Knight also provided monetary support to his high school alma mater Cleveland High School for their new track, football field, and gymnasium.

In October 2008, Phil and Penny Knight pledged $100 million to the OHSU Cancer Institute, the largest gift in the history of Oregon Health & Science University
Oregon Health & Science University
Oregon Health & Science University is a public university in Oregon with a main campus, including two hospitals, in Portland and a smaller campus in Hillsboro...

. In recognition, the university renamed it the OHSU Knight Cancer Institute.

Later years

Knight resigned as the company's CEO November 18, 2004, while retaining the position of chairman of the board. He was replaced by William Perez
William Perez
- Greenhill & Co. :On January 11, 2010, William D. Perez joined Greenhill & Co. as a senior advisor.- Wm. Wrigley Jr. Company :On October 3, 2006, William D. Perez succeeded William Wrigley, Jr. II as CEO of Wm. Wrigley Jr. Company, the world's largest chewing-gum manufacturer. He was the first...

, former CEO of S.C. Johnson & Son, Inc., who was in turn replaced by Mark Parker
Mark Parker
Mark Parker is Nike, Inc.'s third CEO, after William Perez resigned in January 2006 citing differences with his predecessor as CEO, Phil Knight....

 in 2006.

In 2002, Knight purchased Will Vinton
Will Vinton
Will Vinton is an American director and producer of animated films. He was born in McMinnville, Oregon, near Portland. He has won an Oscar for his work, and several Emmy Awards and Clio Awards for the work of his studio.- Education :...

 (Animation) Studios, where his son, Travis, worked as an animator, and changed the name to LAIKA. Travis was named to the LAIKA Board of Directors later that year, and became CEO of LAIKA in March 2009, replacing Nike alum Dale Wahl. LAIKA released their first feature film (stop motion) Coraline
Coraline (film)
Coraline is a 2009 stop-motion 3D fantasy/horror children's film based on Neil Gaiman's 2002 novel of the same name. It was produced by Laika and distributed by Focus Features. Written and directed by Henry Selick, it was released widely in US theaters on February 6, 2009, after a world premiere at...

 in February 2009.

In 2009-2010 Knight was the largest single-person contributor to the campaign to defeat Oregon Ballot Measures 66 and 67
Oregon Ballot Measures 66 and 67 (2010)
- See also :* List of Oregon ballot measures* Oregon tax revolt- External links :* and on Ballotpedia....

, which once passed increased income tax on some corporations and on high-income individuals.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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