[Did You Know] Nike Chairman Sold Onitsuka Tiger Shoes from a Car Trunk

Director Ben Affleck's Film 'Air'
Economic Impact of Jordan Estimated by US Business Magazine Fortune...
Nike Executives Suspected Bakaro as a Mafia Member
Gift Bakaro Gave Jordan During Contract Negotiations...
Phil Knight Reconsidered Contract Renewal, Bakaro Strongly Opposed

The movie 'Air' highlights the sponsorship deal between Nike and Michael Jordan, who was about to debut in the NBA in 1984. The protagonist is Nike scout Sonny Vaccaro (Matt Damon), the key figure who secured Jordan by outmaneuvering Adidas and Converse. He recognized Jordan's extraordinary talent early on and persuaded both Jordan's mother, Deloris Jordan (Viola Davis), and Nike chairman Phil Knight (Ben Affleck) simultaneously. "We've found a player. This time, I have a good feeling." "A rookie?" "Yes!" "A player who hasn't even set foot on an NBA court?" "That's exactly what a rookie is."

'If you know' some useful information, it will be delivered in a somewhat disorganized manner. This is a tip for enjoying the movie more interestingly.

* For movie reviews and evaluations, see '[Slate] Nike Soars Again... With Jordan'.

* The first advertisement that introduced 'Air Jordan' was in 1985, titled 'Jordan Flight.' Michael Jordan flies through the air to dunk and says, "Who said humans can't fly?" That year, the brand recorded sales of $130 million.

* The American business weekly Fortune conducted an in-depth investigation of the 'Jordan Effect' in 1998, when Jordan was at his peak. According to the report, Jordan earned a salary of $34 million and $45 million from endorsements. Nike earned over $3 billion in about 15 years. Fortune estimated Jordan's economic impact at $10 billion.

* Air Jordan was released with numbered editions up to the 23rd in 2008. Nike's division, Jordan Brand, abandoned sequential numbering in 2009 and consecutively released Air Jordan 2009 and Air Jordan 2010. The latter attracted attention for its revolutionary design featuring a layered structure where the toe box and upper (parts other than the sole and laces) were independent. It was made focusing on foot flexibility and mobility, helping athletes move agilely. Jordan expressed joy, saying, "It drew the future of the Jordan Brand and proved that there is no limit to creative ability."

* Phil Knight, portrayed by Ben Affleck in 'Air,' was a successful middle-distance runner at the University of Oregon. Along with Bill Bowerman, who served as the university's track coach from 1948, he founded Blue Ribbon Sports, the predecessor of Nike, in 1964. The startup capital was $1,000.

* Bowerman showed great interest in running shoes while working as a coach. He provided various ideas to multiple shoe companies but was rejected, so he started modifying shoes himself.

* Knight graduated from the University of Oregon and went on to Stanford University, where he earned an MBA. He published a thesis arguing that inexpensive yet high-performance Japanese running shoes could defeat German companies dominating the U.S. market. The brand he focused on most was Onitsuka Tiger. Knight personally visited the Kobe headquarters to persuade them to let him handle sales in the U.S. He stored shoes in his basement and car trunk and sold them by going around the streets.

* The name Nike was coined by Jeff Johnson, the first employee of Blue Ribbon Sports and a former Stanford track athlete. One day in 1971, he dreamed of Nike, the Greek goddess of victory, and the shareholders thought it had more than just a fanciful meaning. They named their first soccer shoe 'The Nike' and attached the Swoosh logo to the shoe. The Swoosh symbolizes Nike's wing, which appeared in Johnson's dream. The logo was designed by Carolyn Davidson, who majored in visual design at Portland State University. She charged $35 for the design. When Davidson left the company, Knight gifted her a diamond ring engraved with the Swoosh logo and company stock.

* Blue Ribbon Sports changed its name to Nike in 1978.

* Matt Damon played Nike scout Sonny Vaccaro in 'Air.' Nike executives initially suspected Vaccaro might be involved with organized crime due to his appearance, name, speech, and behavior, which seemed mafia-like. Jordan also recalled their first meeting, thinking, "Could I really work with someone from the dark world?" Vaccaro enjoyed the misunderstanding, believing that his distinctive personality would somehow be an advantage.

* Vaccaro spent about half a year each year frequenting casinos like Aladdin and Barbary Coast, spending time at sports betting venues. He placed bets on behalf of clients on football games and supplemented his living with the commissions he received. There are also rumors that he operated a small gambling house himself.

* Vaccaro joined Nike in 1972. Executives showed little interest, but Rob Strasser, a key executive, noticed that Vaccaro was well acquainted with college basketball coaches. He discouraged other executives' demands to request an FBI background check and led the hiring. Jason Bateman played Strasser in 'Air.'

* Vaccaro personally met Chairman Knight and persuaded him to sign a contract with Jordan. Knight initially showed no particular reaction, only asking various questions. Vaccaro kept talking about why Jordan had great marketing value regardless.

* Vaccaro recalled that Jordan's side would have accepted even if the royalty rate on shoes was raised to 50% during negotiations. "They wanted more cash upfront because there was no guarantee that such shoes would sell well in 1984."

* At the Air Jordan product briefing, Jordan saw shoes painted red and black and said, "The red looks like the color of the devil." He added, "If I were still a college student, I could decorate the shoes in sky blue," expressing a wish to return to the University of North Carolina. Throughout the briefing, he didn't even raise an eyebrow but asked Vaccaro about the car he had promised. Vaccaro pulled two small toy cars from his pocket and rolled them toward Jordan. "This is your car." Chairman Knight joked, "The company bought the car even before the contract was agreed upon," then left the meeting room.

* Jordan debuted in the NBA on October 26, 1984, at the old Chicago Stadium. The opponent was the Washington Bullets. He appeared on the court to the tune of Michael Jackson's 'Thriller.' Despite struggling, including falling to the floor after colliding with opposing center Jeff Ruland, he recorded 16 points, 6 rebounds, and 7 assists.

* Nike released the Air Jordan 1 in early 1985. The red and black model was banned from use in the NBA. At the time, league rules required players to wear only white shoes. The NBA warned that a $5,000 fine would be imposed each time the Air Jordan 1 was worn. Strasser told Vaccaro that they planned to have Jordan wear the new shoes no matter what and that Nike would pay the fines for each game. They also planned to inform fans through advertisements that the product was banned by the league. Vaccaro later laughed about the incident, saying, "Do you know what happens when you tell the public something is banned? Everyone becomes eager to do it." As he said, Nike made $150 million in sales over three years after releasing this product.

* Jordan first wore the Air Jordan line at the All-Star Game held in Indianapolis that year. It was possible because the event was unrelated to fines. Jordan appeared at the Slam Dunk Contest wearing Air Jordan gear and a gold necklace. Senior players disapproved of his flashy attire. Dr. Charles Tucker, a psychological counselor for Magic Johnson, Isaiah Thomas, and George Gervin, said after the All-Star Game, "The veterans seemed uncomfortable with Michael Jordan's attitude. So they decided to give him a little punishment. Defensively, Magic and George from the Western team tightened their coverage, and offensively, Eastern team teammates refused to pass him the ball. The players are laughing about this now. George asked Isaiah if that was enough to teach him a lesson." Jordan played only 22 minutes and took nine shots. Vaccaro believed that players affiliated with Converse, who were paid relatively less, instigated the incident in protest against Nike. He also assessed that the humiliation Jordan suffered in front of many people and being ostracized by players fueled his fierce competitiveness.

[Image source=AP Yonhap News]

* Jordan always admired Julius Erving, who handled the media with dignity, and imitated his demeanor. Of course, his mother Deloris Jordan's close attention and guidance to every action of her son also helped greatly.

* Vaccaro praised Deloris Jordan, saying, "She was a trustworthy person, very educated, and had perfect manners." In contrast, he described Jordan's father, James Jordan, as "sloppy in many ways." Vaccaro actually avoided meeting James, considering him a heavy drinker and unreliable in business. Michael Jordan's sister revealed in 'Our Family's Shadow' that "As Michael suddenly gained popularity and tremendous success followed, disputes began between our parents."

* Chairman Knight reconsidered renewing the contract with Jordan. During a period of slight sales decline, he even thought about stopping Air Jordan production. He planned to terminate the contract and sign official sponsorship deals with college teams. Strasser had left Nike. He believed Jordan needed an independent brand and advised Jordan to keep requesting such from Nike. When Knight rejected the proposal, Vaccaro presented concrete data showing that the college market could never generate the revenue currently earned by Air Jordan. As a result, Nike signed a lucrative contract with Jordan, which later led to the birth of the Jordan Brand. Unlike the first contract, Jordan tried on every shoe bearing his name and was satisfied.

* At that time, Jordan also advertised for McDonald's, Coca-Cola, Chevrolet, Wilson Sporting Goods, and others besides Nike.

* In 1988, Nike internally discussed having James Jordan earn money independently without relying on his son. The proposal aimed to save the parents' dignity. Nike entrusted James with operating a chain named Flight 23, starting from Charlotte and planning to expand stores. They also gave some ownership shares to Jordan's siblings as chain owners. They were unable to find jobs and struggled to live ordinary lives. The eldest, Ronnie, built a family and a respectable career as a soldier, but the other siblings repeatedly failed. Unfortunately, the operation of Flight 23 worsened family conflicts. At the grand opening ceremony held before the media and crowd, Jordan's parents were arguing in a corner of the store. James still liked drinking and often ignored problems in the business. Chairman Knight heard that he even ignored suppliers' bills and asked Vaccaro to mediate. Michael did not side with his father regarding Nike matters. He agreed with Nike's decision to quickly revoke James's operating rights and shares of Flight 23 stores. James wanted a separate store free from Nike's interference. Later, he returned all rights to Flight 23 and used the sale proceeds to start a clothing company. After that incident, Michael vowed never to do business with family again.

* NBA stars travel worldwide during the off-season to promote basketball shoes. The origin was Jordan's visit to Europe in August 1990. However, he had another reason to leave the U.S. at that time. That summer, Nike was embroiled in a dispute with the Rainbow Coalition, founded by civil rights activist Reverend Jesse Jackson, over insufficient contributions to the Black community. The Rainbow Coalition demanded to audit the company's books, while Nike insisted on verifying the organization's financial status, leading to a breakdown in negotiations. In response, Tyrone Cryder, Secretary-General of the Rainbow Coalition, launched a Nike boycott. Nike proposed to increase Black executives in the company to resolve the issue. As a result, Jordan's position within the company was strengthened, and the Jordan Brand was later born. Jordan issued a statement at the time, saying, "All American companies should provide many opportunities to Black people, but it is unfair to single out and criticize Nike just because it is an industry leader." Vaccaro hurriedly took him to Europe to minimize the noise.

* Vaccaro was fired from Nike in 1991 and moved to another shoe company. "When Phil Knight kicked me out of the company, Michael Jordan called me. I think he was one of the fastest to contact me among the people I know. Michael asked if there was anything he could do to help and suggested he call Phil. But I told him I was completely done with Nike now." Like Strasser, who left Nike earlier, he advised Jordan to demand the establishment of an independent brand, leveraging the great success of the Air Jordan series. "I was quite involved in Michael making that request to Nike. It was like a will I left to Michael. I asked, 'Michael, shouldn't you get some stake in this company?' That was the brand."

* Vaccaro's last mission for Nike and Jordan was cleaning up the last of the Flight 23 stores operated by James Jordan.

[Image source=AP Yonhap News]

* Jordan started on the basketball court and deeply penetrated the core of American popular culture more than anyone else. Vaccaro spoke about the secret to not breaking down in the face of great success: "The massive commercialism created by Nike changed Michael into someone else. The image we created dominated Michael's life from a very young age. I honestly don't know how he could ever return to his original state."

References: Roland Lazenby, translated by Seo Jong-gi, published by 1984 'Michael Jordan (2020)'; Tracy Kavaso, translated by Seo Jong-gi, published by Lion Books 'The Story of Nike (2011)'; Heo Won-mu, published by Sallim Publishing 'Michael Jordan Saved Nike'; Phil Knight, translated by An Se-min, published by Social Review 'Shoe Dog,' etc.