The Oregon Legislature, “despite misgivings about a rushed, sweetheart deal,” approved a new law Friday that “gives Nike greater tax security as the company plans a multimillion dollar expansion in the state,” according to Harry Esteve of the Portland OREGONIAN. The bill passed 50-5 in the House and 22-6 in the Senate. A spokesperson for Oregon Gov. John Kitzhaber said that the governor “plans to sign the bill and ink a tax guarantee contract with Nike within a week” (Portland OREGONIAN, 12/15). In Oregon, Diane Dietz reported the state in the deal promises it “won’t change the way it calculates Nike’s taxes" if the company creates at least 500 new jobs and invests at least $150M in new facilities and equipment in the next five years. The law “does not cut the taxes that Nike is currently paying” (Eugene REGISTER-GUARD, 12/15). But in Portland, Ryan Kost wrote “neither the governor’s office nor Nike has been able to provide any proof for many of the facts being referenced” in support of the Nike deal. At least one fact “appears to be contradicted by Nike’s own public documents.” Kitzhaber and Nike reps “have claimed that the company offers an average annual wage of $100,000 to its employees and that employment in Oregon has grown by 60 percent since 2007.” Yet there is “no evidence that either statement is accurate” (Portland OREGONIAN, 12/15).
BIGGER FOOTPRINT: In Portland, Allan Brettman wrote business at Nike is "booming and hiring continues,” as it has an “Oregon workforce of about 8,000, which the company says has grown about 60 percent in the past five years.” Nike, “in short, has run out of room.” Nike officials “have said all aspects of the business need room to grow.” But sources said that “two of the company's divisions would appear to demand the most immediate attention: product design and digital services.” Digital is “the rapidly growing division that needs more room.” In addition to Nike co-Founder & Chair Phil Knight, "key participants in choosing an expansion site would include" CEO Mark Parker, Nike Brand President Charlie Denson and VP & CFO Don Blair. Nike VP/Global Brand & Category Management Trevor Edwards and VP/Merchandising & Product Eric Sprunk would both also “figure to have an important say in choosing a new site.” Both are “regarded as rising management stars” (Portland OREGONIAN, 12/16). Also in Portland, Brent Hunsberger wrote there is a reason Kitzhaber and Oregon legislators “jumped last week to fill Nike's request.” Business experts said that “established, multinational employers such as Nike” are a “rare, powerful, valuable breed.” Hunsberger: “They don't make 'em that big anymore. And the big ones spawn lots of little ones” (Portland OREGONIAN, 12/16).
