david: what would you say the skills that you brought was, great intellect, great drive, great leadership? phil: all of that. david: let's talk about golf. phil: tiger woods, you could see coming from way back. david: in basketball, you have someone named michael jordan. phil: everybody wanted him. david: if i wore those shoes -- phil: you might. david: when you give a $400 a you million gift, you write a check? is it hard to do that? phil: yes. david: what would you say is the most favorable memory you have? and you phil: i kind of look at nike as my work of art. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪

david: i don't consider myself a journalist. and nobody else would consider myself a journalist. i began to take on the life of you a being an interviewer even though i have a day job of running a private equity firm. how do you define leadership? what is it that makes somebody tick? david: i have worn your shoes for many years, and now i finally you get a chance to talk a you about them. but i will talk about my shoes a and little bit later. when you first started the company in i guess 1962, somewhere around then, you knew nothing about shoe design. you did not know a lot about management, and you did not have any money. so today, the company is worth roughly a market capitalization of $100 billion, revenues of $30 billion, 62,000 employees. did you ever imagine when you first started this company in

the early 1960's that it would ever be what it became? phil: sometimes i would get that question and i would say, we are exactly on plan. [laughter] phil: but with you i can't be a smart [expletive]. david: i wasn't the first to ask that question? a phil: no, but it's been a ride that nobody could see. when we started out, total sales were about $2 billion, now we are $9 billion. we took advantage of the running boom which became a jogging boom which became a fitness boom. and we have benefited from all of that. david: would you say the company benefited more from being a marketing company or a technology company, having a better product or better marketing, or a combination of both? phil: i have said we are a marketing company and product is our most important marketing tool. david: and the skill set that you brought to it, what would will will you say the skill set

was that you brought? great intellect, great drive, great leadership? phil: all of that. [laughter] david: all of that, in equal him and him amounts? a him phil: if there is one thing i have been pretty good at, it's evaluating people. and that was one of the things i wanted to get through and i hope did come through in the book, was how valuable those early partners were, my teammates. they were terrific. david: speaking of that book, here it is. phil: yeah. david: shoe dog, i must confess before i read the book, i did not know what a shoe dog was. for those of us wathcing, what is a shoe dog? phil: in 25 words or less, it is somebody who really loves shoes, and that was me. i was a runner. there is no such thing as a ball and the mile. all you really care about are the shoes, so that became important to me, and has been with me ever since. david: now, you are from oregon, and i think i read that the first fossil of a shoe that ever

existed is 9000 years old, and it was, came from oregon, do you take that as a special sign that it was designed for you to start the company in oregon? phil: well, i have not really thought about it that way, but i will take it. [laughter] david: ok. your father was a newspaper editor once, he told you he would not hire you. why would he not hire you? phil: he knew me pretty well. there were two major newspapers in portland at the time. the journal, which he was publisher of, he wouldn't hire me so i went across the street to the oregonian and got it, and i worked there for three summers. david: so in high school, you were an athlete and ran, but where you a superstar athlete, average athlete, or what would you say? phil: i was a little better than average, but i certainly was not a superstar. david: but you got a a scholarship to go to to the university of oregon? phil: no, i did not. i was a walk on. david: a run on.

phil: a run on, ok. david: your best time was four minutes, ten seconds. phil: four minutes, 13 seconds. david: i gave you three seconds. phil: i should have taken it. david: suppose i told you you a could either built nike or run a 3:56 mile? phil: 3:56 mile or build nike? i will take nike. but i did pause. [laughter] david: ok. so, you lettered in three years, and after which you went into the army, after a year in the army, you served in the reserves for a number of years. you went to business school at stanford. how did you pick stanford for a business goal? phil: it was and is a good school. i got admitted. david: so you got admitted, and there was a class on entrepreneurship? phil: yeah, the professor was really a dynamic professor and inspirational professor, and he

had me write a term paper and you were supposed to attach yourself to a small business in the bay area or make up a small business, and he said, make sure you write about something you know, so most of my classmates wrote about some electronics project, which was beyond me, but i remembered my old track coach playing with shoes, and i was one of the guinea pigs of the shoes he played with, so i was quite aware of the process, and it did not make sense to me at the time that running shoes should be made in germany, which were dominating the world's markets, so i said they should be made in japan, and maybe japan can do to german shoes what japan did to german cameras. so that was the premise. i worked pretty hard on the paper, and the professor liked it. david: did you get an "a" on it? phil: i did. david: all right, so then you graduated. despite this great paper, no shoe company hired you, and then you didn't have the silicon valley venture capital world, so

you didn't get a job there. you went back to your home and you became an accountant, is that right? so was that exciting for you to be an accountant? phil: no, i didn't ever plan to be an accountant for 50 years. i talked to a lot of people about what i should do and i was kind of a finance major at stanford and they said there really is no such thing. you should get your cpa certificate. it will be a great education and put a floor under your earnings, so that's what i did. david: but you also -- before you did that, you went by yourself on a trip around the world? phil: i started out with another guy, but then he got waylaid by a girl in hawaii. i went on alone. [laughter] i didn't have that problem. david: when you were in japan, did you not stop in to see a shoe manufacturer? phil: that was part of the idea inspired by the paper that i wrote, that i would call on japanese shoe manufactures to see about importing their shoes into the united states.

i only called on one and they were enthusiastic, so it began. david: you came back and they started shipping shoes to a company you had named blue ribbon? where did blue ribbon come from? phil: first place. when they asked me to name my company, i had to think of something. david: they called it blue ribbon. so they started shipping you shoes. your job is to sell the shoes. you had a green valeant and you would put them in the trunk and go around the track meets and sell the shoes, is that what you did? phil: that's what i did. david: and at that time you had no vision of building a great global company. phil: well, i thought it was the start and we could be bigger. david: ok. phil: obviously as i said earlier, nobody expected it to be as big as it is. david: but at some point they began to be competitive with you, so you began to build your own company called nike, and you needed a symbol of the company and i guess somebody came up with this swoosh. you paid $35 for that? phil: yeah, it was a graphics arts student at portland state

who needed money. [laughter] phil: we said we will pay you two dollars an hour to get some designs. she spent 17.5 hours on that. [laughter] david: so $35, that's pretty good. phil: it did have a happy ending. david: you gave her some stock. phil: when we went public we gave her 500 shares of stock and she has not sold a single share and it is worth over $1 million right now. david: wow, pretty good. so, you planned your own company. did you actually design the shoes yourself or were you the person who figured out what the shoes were going to look like? phil: we were in a hurry. it reminds me of -- they asked john kennedy how he became a hero, and he said, it easy, they sank my boat. tiger just basically just kind of gave us an idea that we better change manufacturers, so we were in a hurry. and the first shoes were in an

office in tokyo, japan over the course of the weekend. david: if you actually have better shoes, can you run faster, or does it not make that much difference? phil: i think shoes are key. we still believe in the mile run lighter is better. it makes a difference. obviously, if you tried to run a mile and a pair of dress shoes, you will not run as fast as you do in four ounce cleats. in the old days when i was running at the university of oregon, we had a lot of canvas upper training shoes. you go out for a six mile run and you come back in your feet were bloody, so it matters. david: so when you started your company nike, the dominant companies were german, adidas and puma. were they happy with you coming along or they try to get you out of business? phil: they didn't worry too much about us until it was too late.

we kind of snuck up on them. david: and basketball, you have somebody named michael jordan. that's a basketball player you have heard of, right? phil: i've heard of him. when we started making shoes, we made them really dramatic. david stern did us a huge favor. he banned it in the nba. we ran a big ad that said banned in the nba, and every kid wanted them. [laughter] david: when you wear his shoes, do you jump higher. if i wore those shoes, i wouldn't be jumping higher, right? phil: you might. david: i might go get some. ♪

david: there was a university of oregon runner, steve prefontaine, a legendary track star, and you became close to him. how did you get him to wear your shoes? phil: well, we worked at it and worked at it and worked at it.

obviously, that he had worn adidas his whole life, but he was right there in eugene, and we had a small office in eugene, and the guy who ran the office became his brother practically and ultimately convinced him to switch to nike, and he was our first real prominent track and field athlete. david: you went after others. you have to pay them to use your shoes or they just like it so much they use your shoes? phil: they all just like it so much, they wear them. david: really? phil: no. [laughter] phil: if they are good enough, they demand an endorsement fee from us or whoever. the one that comes immediately to mind is michael johnson at the 1996 olympics in atlanta, wore the gold shoes, which lifted us significantly. david: and you made those gold shoes? early on, john mcenroe, he would from time to time lose his

temper, and did that reflect poorly on your shoe? or you didn't care about his image? his image was a great tennis player, but sometimes he would lose control, some people might say, and that did not bother you, or did it help sales? phil: the latter. david: oh, it did? ok. phil: no, he had a bad temper. but i always remember that arnold palmer had a bad temper too, but he would keep it in control. but you could see him standing there ready to lose it. john went over. he was arnold palmer that did not keep it in control, but he was probably the most exciting player of his era. and in private, he was a perfect gentleman. it was just that he was so intense that it would get away from him sometimes. but he was unique in that he lost his temper a lot, but when he played bjorn borg, he never lost his temper once. and i think he played him 25 times and he never lost his

temper once. david: wow. i never really knew john mcenroe as a tennis player, but when i practiced law, the office next to mine was held by man named john mcenroe senior, and he always told me his son was a high school tennis player and was really good, but then i finally realized he was not exaggerating. [laughter] david: so, let's talk about golf. a man named tiger woods came along and you signed him up relatively early in his professional career, i guess at the beginning of it, so was that hard to convince him to do this? phil: tiger woods, you could see him coming from way back. that he had won three u.s. juniors and went on to win three u.s. amateurs in a six-year span from the time he was 15 to 20, so we -- he would play occasionally in the portland area and we would always invite him and his father out to lunch, so we were working on that for three years before we actually signed him. david: and when you signed him up, he wears your shoes exclusively, but you also then began to make golf equipment as well, so you make golf balls and

golf equipment, but now you are out of that business. is that because you want to focus on shoes and not other types of equipment? phil: it's a fairly simple equation. we lost money for 20 years on equipment and balls and realized next year was not going to be any different. [laughter] david: ok, so you got out of that. you are doing casual wear as well, the aerobics effort, casual wear. you have decided to make athletic shoes into a casual kind of shoes. did that work as well? david: sportswear, shoes and clothes is still a significant part of our business. david: and so, in other words, it is not just for athletes. you now try to design shoes for people who are wearing them casually, and so you like it when people are wearing suits and your shoes as well? phil: you look great. [laughter] david: do you wear anything other than nike shoes? phil: no. david: you wear a tuxedo or something and you wear nike shoes? phil: black nike shoes.

david: let me ask about basketball. in basketball, you have somebody named michael jordan, a basketball player, you've heard of, right? phil: i have heard of him. [laughter] david: was it hard to sign him up, and why was his shoes so successful, the most successful shoe ever in the athletic world? phil: yeah, it was hard to sign him up because everybody wanted him. and we won that bid. we won that war. david: was it on your personality? phil: clearly. [laughter] david: not money, just personality? phil: no, we offered pretty good. we had a lot of good players. we did not have really great players, and we thought he had the chance to be that. he was obvious he way better than we could have imagined, but when he started wearing shoes, we made them really dramatic. they were red, black, and white. he was, of course, a very exciting player. he was quick, shot, jump, handsome, spoke well, and the shoe was distinctive looking and

david stern did as a huge favor, he banned it in the nba. and so we ran a big ad that said "banned in the nba" and every kid wanted the shoe then. [laughter] david: but now michael jordan has not played for more than a decade and yet the shoe is still your best-selling basketball shoe, why is that? phil: when michael jordan retired from basketball, we were selling $700 million worth of jordan product. and it's now become a brand and we are selling over $3 billion, but some kids don't even know who he was. it became a brand. it went from an endorsement into a brand. david: so, when you wear his shoes, can you jump higher? if i wore the shoes, i would not jump higher, right? phil: i think you might. [laughter] david: really? i'm going to go get some. when did you realize you can't take it with you and it is better to give it away? phil: it was late in the process because i kept thinking it was all going to disappear.

i often said, if this is a dream, don't wake me. david: so when you give a $400 million gift or $500 million gift, you write a check out or you wire the money and it is hard to write that check? phil: yes. ♪

david: because of the success of the company you are one of the wealthiest men in the united states and one of the wealthiest men in the world. you are also one of the biggest

philanthropists in the united states and the world. let's talk about your philanthropy for a moment. when did you realize you just can't take it with you and it is better to give it away? at what point do you say i have to do something with this other than hold onto it? phil: it was fairly late in the process because i always thought was going to disappear. i often said, if this is a dream, don't wake me. yes, as the years went on, it seemed more real, so as i got older, i said to me can take it with you, but i wanted to focus on three or four main charities rather than to try and spread it across the board. david: to the university of oregon, you have given a couple of hundred million dollars related to athletics, but $500 million recently for a science center, so why did you decide to be so generous to your alma mater? phil: well, and basically, i kind of have to laugh because two of the great entrepreneurs, bill gates and steve jobs, basically dropped out of college when they were freshmen, and my

story is the exact opposite. the company nike is really the result two universities, the university of oregon, which started the idea of running shoes, and stanford, which had the entrepreneur education, so i tried to get back to those two schools. the other which means a lot to the other which means a lot to me is oshu, which has an outstanding leader in their cancer research area. david: the oregon science health university, you gave them $500 million for cancer research. you've also given recently $400 million for a program at stanford university. so when you give them $400 million gift or a $500 million gift, do you write a check out or wire the money and is it hard to write the check? [laughter] phil: yes. some of it has been given in stock and some paid out over a few years.

david: you had two sons, one died tragically in the scuba diving accident. in his honor, you have done some things. how have you tried to memorialize him in that way? phil: well he was a big sports fan, so gave some money to the university of oregon for their new basketball arena, which was named after him. david: today, what is left for you to accomplish and what haven't you accomplished? phil: i look back on the last couple of years and i am happy in those years, particularly around the philanthropy and what i've been able to do and will be more ahead, but i take my time to think about those things and i'm feeling good about things right now. david: so do consult with your wife on things like that? phil: absolutely, she has final approval. [laughter] david: now, where did you meet your wife? phil: i taught for two years at oregon state and she was one of my students. david: she was a good student? phil: she was a very good student. she was a better student than i was. david: it is unrealistic to make these kinds of products in the

united states, you would say, these shoes and those kinds of things? phil: it is as we speak, but the manufacturing technology is changing very rapidly, so 5 to 10 years, there will be shoe manufacturing done in the united states, which is supposedly good news. the bad news is there will not be a lot of jobs. it will be automated. david: you never actually hurt your knee so much, you don't have artificial knees or hips. phil: i do not. david: so how did you avoid those problems by running so much and not having damage your body, you were just a graceful runner, or the shoes? phil: i don't have very much muscle mass, so i was lucky that way. yeah, i still get out and walk. when i was, i think 70, when i was out for one of my runs, i was passed by a woman with a baby carriage and realized that maybe i should quit trying to run and just walk. david: the athletes you have met over the years, you have been

involved with some of the most famous athletes -- tiger woods, john mcenroe, steve prefontaine, michael jordan among others, are any of them that stand out to you as role models for youth, or do think all of them are, and which one's have you developed the closest personal relationship with? phil: well, all the ones you mentioned i like a lot and they are all of that bit different. was john mcenroe a role model? yeah, kind of, but a lot of people would disagree with that. but yeah, which one stands out more than the other -- i really do look at the them as my children, and who is your favorite child? you can't say that. david: does tiger woods give you golf tips, or you don't play golf? phil: i do, badly. he tried to give me a tip, but it didn't work. david: so, the high point of your career you would say was when nike went public or when nike came to the success it currently has? what would you say is the most favorable memory you have?

phil: i kind of look at nike as my work of art, if you will, and just the whole painting is what matters. david: let's talk finally about leadership. so, leadership is not clear to people, whether you are born with it, inherit it, or become a leader by education. what do you think makes a great leader? phil: well, they come in all shapes and sizes, don't they? obviously hollywood portrays leaders as tall, handsome, strong-jawed, but a lot of times real good leaders are first of all, they have got to want it, but they come in all shapes and sizes. i don't know there is anyone lesson. david: now you are famous for wearing sunglasses, and i appreciate you not wearing them for this interview. is that because you are shy by nature? you just don't want people to see you? phil: basically, i wear contact lenses and it makes the sun

bright. the future is so bright that i wear them all the time. [laughter] david: ok. ♪

♪ ♪ its been six years since tim cook took over apple from steve jobs. he has unveiled the apple watch and apple music, apples's largest acquisition in history. he taken on issues like the