48 pages • 1 hour read
Phil KnightShoe Dog
Nonfiction | Autobiography / Memoir | Adult | Published in 2016A modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more.
Chapters 13-15Chapter Summaries & Analyses
Chapter 13 Summary: “1974”
On April 14, 1974, Knight sits in a courthouse in downtown Portland alongside Cousin Houser and Strasser. At the opposing table are the lawyers representing Onitsuka. Onitsuka’s head lawyer is Hilliard, a short man who makes everything he says sound “sinister.” Blue Ribbon’s head lawyer is Cousin Houser.
Knight is called to the stand and does not perform well under the pressure. Johnson discusses the trial with a local retailer the day after the judge demands that the case not be talked about outside of court. The judge berates the Blue Ribbon team for this breach of orders. Bowerman is called to the stand but does not perform well either. Still, the judge decides in Blue Ribbon’s favor. Onitsuka makes a settlement offer of $400,000. Cousin Houser and Knight accept.
After the case, Knight offers Strasser full-time employment at Blue Ribbon. After consulting with his father, Strasser becomes Blue Ribbon’s “first-ever in-house counsel” (250).
Due to fluctuating conditions in Japan, Knight seeks factories in new locations. He settles on a plan to send materials from Puerto Rico to factories in New England. Johnson and Knight drive to a broken-down factory in Exeter, New Hampshire. They meet with a local man named Bill Giampietro, who agrees to help them clean and staff the factory. Knight tells Johnson that he is planning on using Nissho’s funding to open the factory. He asks Johnson to run the factory. After protesting, Johnson accepts and moves once more back east to Exeter.
Chapter 14 Summary: “1975”
Knight remains committed to keeping his creditors at Nissho happy, particularly the financial manager of the Portland office, a man named Ito. Knight refuses to slow his growth even though Blue Ribbon’s cash reserves are sometimes stretched so thin that the account is overdrawn.
In the spring of 1975, Blue Ribbon owes Nissho $1 million. Knight finds he is around $75,000 short. To make the payment, Blue Ribbon must drain the accounts of its retail stores nationwide. This results in several employees’ paychecks bouncing at the factory in Exeter. Hayes calls the company’s banker, Holland, to “smooth things over” (262), and Giampietro borrows $5,000 from a friend to pay the workers.
Hayes and Knight meet with Holland at the Bank of California, where Holland informs them, “[W]e no longer want your business at this bank” (262). Hayes and Knight go straightaway to Ito and Sumeragi, another Nissho representative, to tell them the news. Knight admits that Blue Ribbon has been surviving “on the float” (263), and in addition to being unable to pay the $1 million he owes, he will also need to borrow $1 million more to stay alive. Ito says he will have to look over Blue Ribbon’s books before approving another loan.
Knight speaks with Holland over the phone that same night. Holland informs Knight that the FBI has been called because the bank believes Blue Ribbon is a fraud.
After meeting with Woodell and others, Knight realizes that all depends on Nissho’s assessment and approval. Meanwhile, Blue Ribbons’ checks to creditors begin bouncing. Two creditors in particular claim they are coming to Portland to collect their payments.
On a Monday at 9:00 am, Ito and Sumeragi arrive to go over Blue Ribbon’s books. Although they see that Knight has used Nissho's funding to pay for a factory, they ultimately forgive him. This leaves the FBI as the only remaining problem. Hayes, Knight, and Ito meet with Holland at the Bank of California. Ito tells Holland that Nissho would like to pay off Blue Ribbon’s debt in full. Knight understands before leaving the office that “there would be no more FBI investigation” (273).
Chapter 15 Summary: “1975”
Hayes and Knight scramble to find a new bank to cover them. First State Bank of Oregon agrees to give them $1 million in credit.
Prefontaine hosts a meet in Eugene, where he races and beats Olympic gold medalist Frank Shorter in the 5,000-meter race. Afterward, there is a party at Hollister’s house. Prefontaine drives Shorter home from the party and shortly after loses control of his vehicle. Knight receives a call from Ed Campbell at the Bank of California early in the morning. Campbell tells him that Prefontaine has died. He was 24 years old, the same age Knight was when he first left for Hawaii.
Chapters 13-15 Analysis
Knight’s memoir follows a traditional narrative arc, and this section brings the story to its lowest point. Nike faces two of its greatest challenges in these chapters. The first of these is its trial against Onitsuka in Chapter 13. Although Knight, Bowerman, Johnson, and Woodell all make mistakes during the trial, they wind up winning the case. Through the process, Knight also acquires an important new team member for Nike: Strasser. Just like Hayes and Woodell before him, Strasser proves to be an invaluable asset for Knight and goes on to become part of the company’s core. More than just a talented lawyer, Strasser is an Oregonian and a true believer in Nike’s cause. For these reasons, Knight tells Strasser, “You’re one of us” (250). The episode highlights Knight’s ability to turn a setback into a gain, underscoring both his personal determination and The Desire for Victory as Nike’s Binding Spirit.
A second wave of challenges comes when Knight’s partners at the Bank of California tell him, “[W]e no longer want your business at this bank” (262). This creates several consequences that require Knight to empty funds from his retail store accounts. Employees’ and creditors’ checks bounce. The problem is only resolved when Knight’s creditors at Nissho decide to step in and help. In an unexpected act of grace and forgiveness, Nissho overlooks the fact that Knight used Nissho’s funds to buy a factory without notice—another instance of Breaking Rules in Order to Succeed that ultimately pays off.
In addition to these business challenges, there are also emotional challenges. Prefontaine, one of the early icons and legends of the Nike brand, dies in a car crash after a track meet in Eugene in 1975. This is tragic for many reasons, including the fact that Prefontaine was returning to form following a disappointing performance in the 1972 Olympics. The loss is especially difficult for Bowerman, who said at Prefontaine’s funeral, “Pre was determined to become the best runner in the world, but he wanted to be so much more” (280). Ultimately, Knight suggests that Prefontaine’s spirit is embedded in the spirit of Nike.
