This document summarizes the history and founding of Nike. It describes how Bill Bowerman, a track coach, and Phil Knight, a runner with an MBA, formed a partnership called Blue Ribbon Sports in 1964. Knight convinced a Japanese company to produce running shoes for them to distribute in the US. Their early innovations helped athletes perform better. The company was renamed Nike in 1971 and launched their iconic Swoosh brand mark in 1972. Nike continues to create superior athletic products and had over $25 billion in revenue as of this document.

1. CORPORATE FINANCE
MG/670 Dr. Yung
Presented by Derri Taylor Thomas

2. BEFORE THERE WAS THE
SWOOSH…

3. BEFORE THERE WAS
NIKE…

4. THERE TWO MEN WITH A VISION
Bill Bowerman, respected track and field coach at University of Oregon
Phil Knight , talented middle-distance runner with MBA in finance from Standford
University

5. 1964- A HAND SHAKE AND PLEDGE OF $500 EACH
FORMED BLUE RIBBON SPORTS
 Bill Bowerman seeked ways to give
his athletes competitive advantage:
 Hydration drinks
 Different track surfaces
 Innovations in running shoes
 Phil Knight wrote proposal for quality
running shoe to Japaneses
manufacturers, but calls went
unanswered, but he didn’t give up
 He madw calls to Onitsuka Co. in Kobe
Japan and convince them to make him
a distributor for Tiger shoes in the U.S
 First attempt to sell was to Bill
Bowerman who offered a partnership

6. EARLY INNOVATIONS
While Knight sold shoes out of his
Plymouth, Bowerman ripped apart
Tiger shoes, to find ways to make
them lighter and better. His creations
were tested by University of Oregon
runners.

7. 1970-1979 NIKE’S
BIRTH
Jeff Johnson, a runner, became Blue
Ribbon’s first employee in 1965. He
created and conjured up the name
Nike in 1971.
The new Nike line of footwear with the
Swoosh brand mark debut in 1972

8. KNIGHT OFTEN SAID, “PRE WAS THE
SOUL OF NIKE”
 1972: Nike Endorses Steve Prefontine
who track over one-mile distance and
gained national exposure.
 He would become an ambassador for
Blue Ribbon Sports and Nike, signing
and sending Nike shoes to runners with
notes of encouragement
 Died at age of 24 in 1975

9. TODAY NIKE CONTINUES TO CREATE
SUPERIOR PRODUCTS FOR OUR
CUSTOMERS

10. Direct Competitor Comparison
NKE ADDYY PVT1 PVT2 Industry
Market Cap: 68.35B 25.30B N/A N/A N/A
Employees: 48,000 42,540 N/A 109,351 N/A
Qtrly Rev Growth (yoy): 0.08 -0.07 N/A N/A 0
Revenue (ttm): 25.81B 18.62B N/A 4.32B1 N/A
Gross Margin (ttm): 0.44 0.49 N/A N/A 0
EBITDA (ttm): 4.03B 1.78B N/A N/A N/A
Operating Margin (ttm): 0.14 0.08 N/A N/A 0
Net Income (ttm): 2.66B 678.42M N/A 92.80M1 N/A
EPS (ttm): 2.96 1.62 N/A N/A N/A
P/E (ttm): 25.93 37.3 N/A N/A N/A
GO

11. ANALYSIS OF BALANCE SHEET
Total Assets = $17,584,000 ( Increased asset indicate company has growth
2013 ROE = Net Income/stockholder’s Equity= 2,485,000/11,156,000= 22%

12. http://finance.yahoo.com/q/bs?s=NKE+Balance+Sheet&a
nnual

13. HOLDING PERIOD RETURN: RETURN ON ASSET
OVER SPECIFIC PERIOD OF TIME OR HOLDING
RCA
=
CapitalAppreciation
InitialPrice

P1
-P0
P0

P
P0
 78.92-77.81/78.92= 1.41
 From Sept I earned 1.41% on
investmemt

14. SO IF I INVEST WHAT’S
THE RISK???
Risk is determined by the Beta:
If the Beta is 1 that means the stock sways with the
market movement
Over 1.5 or more the risk is even higher
Below 1, no risk =Nike(.55)

15. Nike is top in industry since 1965
Risk are low if investing
Assets increased 85% from 2011 to 2013
Guaranteed return
TELL ME AGAIN, WHY
INVEST?

16. JUST DO IT
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