- Lawsuits totaling more than $70 million are heading to arbitration as Nike finishes its new campus.
- The expansion added six buildings to the company's sprawling 300-acre campus.
- Subcontractors claim they haven't been fully paid. Nike expects the differences to get resolved.
Nearly a dozen construction lawsuits, totaling more than $70 million, are heading to arbitration as Nike wraps up a massive expansion of its suburban Portland headquarters.
The sportswear giant announced in 2013 that it would significantly expand its 300-acre campus. By 2016, the company said the expansion would add six buildings to the campus, including office space, a fitness center and a parking garage, according to local reports.
This month's unveiling of the LeBron James Innovation Center marked the culmination of six years of construction.
While the expansion and its sleek, angular architecture is a hit with many employees, Insider reporting shows a trail of frustrated subcontractors who claim they haven't been fully paid for everything from installing glass to wiring electrical outlets.
Nike did not return requests for comment.
The company previously told The Oregonian, which earlier reported on the claims of subcontractors, that a "project of this size and scope involves complexity" and it was "committed to seeing through the successful completion of our expansion." It's also previously said it expects all claims to get resolved.
In April, The Oregonian noted construction and design firms had filed more than $110 million in liens against Nike and the project's general contractor, Hoffman Construction Co., for unpaid bills.
The paper separately estimated the expansion project would cost $1 billion.
Business Insider documented nearly $140 million in active liens, mostly from the later stages of construction, such as final carpentry. Many liens for earlier work, such as masonry and concrete, have been satisfied, according to county records.
Several of the recent claims have moved to the courtroom. Since January, Nike and Hoffman have been named in 10 civil lawsuits by subcontractors.
The lawsuits make overlapping claims about constant changes in design and construction plans, notably on a 450,000-square foot merchandising building. Subcontractors claim they were forced to do extra work, but they haven't been paid for it.
In one lawsuit, a subcontractor claims it's had negative cash flow for three years because of how long it's taken to get invoices paid.
Hoffman didn't return a message. Lawyers for the subcontractors either didn't return messages or declined to speak with Business Insider.
"Problems arose immediately on the project," wrote lawyers for Dynalectric Co., in a lawsuit. "Construction commenced without the project design being completed or even sufficient to construct it."
Dynalectric did electrical work in the merchandising building.
Utah-based Fetzer Inc., which does architectural millwork, claims delays extended its work on the project from 23 months to 45 months. In March, Fetzer sued Hoffman and Nike for $2.8 million.
Like the other lawsuits, it recently moved to private arbitration, before Hoffman or Nike filed a response to the claims.
The removal to private arbitration means the outcome of the dispute will likely remain secret.
While subcontractors battle it out with Nike and Hoffman behind closed doors, Nike employees are preparing for an expected January return to a campus very different from the one they vacated at the start of the pandemic.
Current employees speaking with Insider mostly view the campus expansion favorably, although there are lingering frustrations about recent layoffs and ongoing criticisms about efforts to make Nike's workplace more inclusive, work which is a priority for CEO John Donahoe.
Several Nike employees used the word "inspirational" to describe the campus expansion. It's expected to help recruiting in a tight labor market.
The employees, who aren't authorized to speak about the company, were given anonymity in order to allow them to speak candidly.
"This feels like the center of the sports universe," one employee said.
