He is the richest businessman of Greek origin in the whole world. A second generation immigrant, born in Boston, who started (as usual in these cases) out of nowhere and with hard work and wit came today to own the 373rd place in the list of the 400 richest people in America, with his personal fortune estimated at $ 6.9 billion.
Jim Davis, owner of the footwear company New Balance and billionaire, is a real economic case study on how a poor Greek founded an “empire” sports shoes, reaching the locker rooms of Liverpool and other great football teams.
Leave chemistry and biology for business
Davis was born in 1943 in Massachusetts to Greek immigrant parents. His father’s name was Spyros Papagelas [Spiros Papegelas] and his mother, Anastasia or Tessie, an American. His name is normal James (that is, James) Papagelas, but in his 20s he chose the name Davis [Davis] for professional and social reasons.
In the early 60’s he got his degree in biology and chemistry from Middlebury College, however, seeing that he did not “have it” much with his science and at the same time observing his inclination to mathematics, accounting and business, decided, just before the age of 30, to take his big professional step, which of course in the course completely justified him: in 1972 he acquired for just $ 10,000 a small, insignificant Boston-based company with just six employees and a production capacity of 30 pairs per day: was the company of sports shoes and items New Balance and threw all his time, effort, money and interest on it.
And soon, in just five years, he saw the fruits of his effort: in 1976 the company launched the sneaker “New Balance 320”, which was, as it was preached, “the ideal choice for running”. This particular shoe made her world famous as she had it engraved for the first time characteristic letter “N”, while it sold… with the containers we say.
Shortly afterwards, New Balance, wanting to show that it caters to all ages, created the “Ma and Pa Balance” and for its promotion, the company did not choose an athlete, but an elderly couple – It was the first time a shoe company had targeted exclusively seniors, another ingenious move by Davis.
Until the dawn of 1980, NB was the only shoe manufacturing company in the United States and managed to enter into important partnerships with sports federations, such as the exclusive launch of sportswear for the sport of lacrosse and (then still in its infancy) football.
Somehow, New Balance sales skyrocketed from $ 100,000 in 1972 to $ 1.3 million in 1976, exceeded $ 80 million in the 1980s and $ 1.3 billion in 2002.
Warren Buffett and Liverpool
Of course, Davis has said various “no” at times – and he has not regretted it.
His years-long rivalry with Croesus has remained legendary Warren Buffett, who 14 years ago approached him, even giving him a “white check” in order to buy NB, but Davis sent him the check back.
The Greek businessman stubbornly refused his company to leave the family control – an indisputable witness, after all, is the fact that New Balance is 95% owned by his family and has not been listed on stock exchange.
The only “defeat” that Davis suffered was about six years ago when he got into a fight with his compatriot, businessman John Henry, owner of Liverpool.
The English team wanted to prematurely end their partnership with New Balance to go with Nike, from whom they had received a much higher offer, but Davis decided to take the matter to the extreme and eventually the case was referred to the High Court of London.
New Balance claimed that it reserved the right to renew its partnership with Liverpool, in case you submitted an equal offer with a competing company, such as Nike. For his part, Henry argued that NB was not able to “equalize” Nike’s proposal, ie 75 million pounds a year and he was right because in the end Davis was defeated on a legal level, tearing down the “bridges” he had built so hard with the English team.
Not that Davis was intimidated at all: on the one hand, he felt satisfied watching the NB logo on the shirts of other football teams such as Porto, Sevilla, Lille and Roma, and then decided to invest in other areas, such as commercial real estate in Gloucester, Massachusetts, the Birds Eye frozen food factory and a boutique hotel.
Furthermore, the The Davis family is also known for her philanthropic work, having created the New Balance Foundation, which supports charities with an emphasis on healthy living and reducing childhood obesity.
He donated $ 5 million to the University of Maine and Middlebury College, where he graduated, was named after him in a library, having first made a generous donation of $ 60 million.
And now, at the age of 73 and having handed over the baton of the business to his children, he enjoys retirement taking walks with antique cars he has been collecting since the 1980s or listening to his Rolling Stones favorites.
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