Shoe Dog: 17. 1976 Summary & Analysis

Now that Blue Ribbon’s financial problems are largely in the past, Knight sets his sights on the future. He realizes that he needs a vision for the company in order to build it into something great. Although Sony is his role model, he wants to create a brand that is even bigger. No matter what, Knight tells himself he will never lose. He hates losing more than anything, and he could not live with himself if Blue Ribbon were to fail. 

However, Knight constantly runs up against a major problem: equity. Knight knows there is only one way to permanently fix his cash flow problem: he needs to take the company public. However, like before, he is still reticent to do so because he does not want to be beholden to anyone other than himself. Furthermore, when he discusses the topic with his closest associates such as Bowerman, they also disapprove of the idea.

Around the same time, Bowerman decides to leave Blue Ribbon. He feels he is too old for the company, which is a young man’s game. Knight does not want Bowerman to bow out completely, so he offers him a spot as vice president on the company’s board. He also tells Bowerman he will buy his stake in the company—but slowly, over a span of several years. The deal satisfies both parties.

It is also around this time that Knight decides to ditch the name Blue Ribbon for Nike, Inc. After changing the company name, Knight feels it is time to diversify the production of Nikes. The yen and the American dollar are all over the place, and Knight needs a more secure location to produce his shoes. As such, he turns his gaze to Taiwan.

Knight travels to Taiwan with Jim Gorman, one of his star employees. On the way to Taiwan, Knight teaches Gorman about the global economy and how political instability threatens it. Gorman does his best to keep up and occasionally offer suggestions. However, when Gorman arrives in Taiwan, he starts to fall apart. Gorman has never been to Asia before, and the experience overwhelms him. Nonetheless, he puts on a brave face and tours many factories with Knight.

Everywhere Knight and Gorman go, the Taiwanese people treat them like royalty. During their travels, they sign a big deal with some Taiwanese factories. However, in order to do so, Knight has to come up with yet another name for his business: Athena Corp.  Because of the political tension between China and Taiwan, Knight knows he cannot use the name Nike in Taiwan. If he does, he will never be able to do business with China, “a country with two billion feet.”

Back in America, Eugene, Oregon hosts the 1976 Olympic Trials. Knight decides that 1976 is the year that Nike will finally appear in the Olympics. Indeed, on the first day of the trials, Nike gets three athletes who qualify for the Olympics, which is a cause for celebration among Knight and his colleagues. In the following days, even more Nike athletes qualify, and Nike becomes the talk of the town. Knight takes full advantage of the moment and sells Nike shirts at the Trials to spread the brand name further.

Despite Nike’s great success, the company still has an equity problem. Again, Knight considers whether Nike should go public. He holds a retreat with Woodell, Strasser, Hayes, and Johnson to talk about the company’s future. Although the retreat focuses on several important topics, the most important one is the question of going public. Still, no one loves the idea, but they start to realize it may be the only way for Nike to achieve its long-term goals.