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You’re Remembered for the Rules You Break.
Methods of Prosperity newsletter no. 70. Phil Knight (continued).
TL;DR
In 1969, Phil Knight left his teaching job to focus on Blue Ribbon Sports. By 1972 they launched the Nike shoe at a trade show. Despite imperfections in the product, it sold well. Blue Ribbon had a reputation for telling the truth.
Their relationship soured with Onitsuka, their Japanese supplier. When Blue Ribbon launched Nike, Onitsuka ended their contract, claiming damages. Phil pushed for independence. He recognized the opportunity to launch Nike.
His company secured credit to survive, but struggled to maintain liquidity. In 1975, Blue Ribbon faced a severe cash shortfall, resulting in bounced paychecks. Desperate, they took a loan from a local box company, to cover payroll. It was the same vendor which depended on Blue Ribbon to stay in business.
That’s when the Bank of California severed ties. Phil couldn’t pay the $1 million he owed to his equity partner, Nissho. He asked ... 0 reply
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