Growing pains: the crisis of cooperation

With the efforts of Phil Knight and Bill Bowerman, Blue Ribbon Sports gradually got on the right track. Their sales performance climbed year by year, from 300 pairs of shoes sold in the first year to $8,000 in 1965, and even $20,000 in 1966. As the business continued to expand, they began to hire sales staff, among whom Jeff Johnson became a key figure in the company. Johnson is an avid runner and has a deep understanding of shoes. He works seven days a week and devotes himself to sales work. He often writes letters to communicate with customers. With his love for shoes and professional knowledge, he has won many loyal customers for the company and promoted the sales of Onitsuka Tiger running shoes in the market.
As the market gradually opened up, Blue Ribbon Sports' business flourished, and the office location moved from the garage of Phil Knight's parents' home to an office building in downtown Portland. However, as the company continued to grow and develop, some potential problems gradually surfaced. As a supplier, Onitsuka's attitude towards Blue Ribbon Sports began to become subtle. On the one hand, Onitsuka was satisfied with Blue Ribbon Sports' sales performance; on the other hand, they also began to realize that Blue Ribbon Sports' influence in the US market was increasing, and they were worried that it would gradually get out of their control.
In 1971, the conflict finally broke out. Onitsuka made a request that Phil Knight could not accept - to acquire 51% of Blue Ribbon Sports' shares, intending to control the company's decision-making power. Onitsuka believes that although Blue Ribbon Sports has developed rapidly, it is only a distributor after all, and as a brand owner, it should have a greater voice. In addition, Onitsuka also saw the huge potential of the US market and hoped to further expand its share of the US market by acquiring Blue Ribbon Sports.
Phil Knight knew that once Onitsuka's acquisition request was accepted, Blue Ribbon Sports would lose its independence and his efforts over the years would go to waste. He believed that the reason why Blue Ribbon Sports could achieve today's results was inseparable from the hard work of himself and his team, as well as the in-depth understanding of the US market. Onitsuka's acquisition request was undoubtedly a denial of their efforts. Moreover, Phil Knight has always had a bigger dream in his heart, which is to create his own sports brand instead of always working for others.

After many fruitless negotiations, the conflict between the two sides was completely intensified. Onitsuka threatened that if Blue Ribbon Sports did not accept the acquisition, it would take back its agency rights in the United States. Faced with the threat of Onitsuka, Phil Knight did not back down. He decided to burn his boats, part ways with Onitsuka, and start building his own brand. This decision was not only a major choice for the fate of Blue Ribbon Sports, but also foreshadowed the birth of the Nike brand.

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