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Knight waffles on success
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February 4, 1997: 4:37 p.m. ET
Nike's chairman and CEO went from the kitchen to the boardroom
From Correspondent Beverly Schuch
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NEW YORK (CNNfn) -- When Phil Knight introduced his sneaker soles, made on a waffle iron, many people were ready to criticize him. (30K WAV) or (30K AIFF)
But the chairman and CEO of Nike Inc. and his "crazy" idea have made him the sixth richest man in America, heading a company with $6.5 billion in annual sales.
One of the people who told him he was crazy was Bill Bowerman, Knight's track coach. He is now a director of the company. He got rich as well.
Knight's interest in shoes was created when he was running track at the University of Oregon.
The genesis of Nike started out as a paper at the Stanford University Business School in an entrepreneurship class.
Knight wanted to create a U.S.-based shoe maker. "Adidas and Puma were beginning to dominate the U.S. market." Knight felt it was logical that there be an American competitor.
"My track coach, Bill Bowerman, was always (looking to) design lighter shoes," said Knight.
"Some of the best athletes in the world were winning major races wearing shoes made in Bowerman's garage."
Bowerman and Knight became partners in the company that would become Nike.
Nike's early meshwork tread design was made by Bowerman in his kitchen. He dropped some latex into his wife's waffle iron and a sports empire was built.
The multibillion dollar company started out with an investment of $500 each which got them 300 pairs of shoes sold at $3.30 a pair. There were sold mostly out of the back of Knight's car.
The company is known for its high-profile advertising featuring star athletes like Michael Jordan and Andre Agassi. These endorsements cost the company about $50 million a year. Golfer Tiger Woods is Nike's next big bet.
Despite his success, Knight admitted that there was one initial critic who was hardest to impress -- his father. (129K WAV) or (129K AIFF) 
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