Shaquille O’Neal, who is on track to becoming a billionaire with an estimated net worth of $500 million, hasn’t always been mindful of the power of money. In his early days, Shaq focused more on what it could buy and the status it conferred.
What Kind Of Car Am I?
A recently resurfaced 1996 quote from the New York Times offers insight into his mindset when he left the Orlando Magic to join the Los Angeles Lakers for a bigger payday.
Shaq said back then, “If you pay 25 grand for a Beemer, you’ve got to pay 40 for a Benz, bro, and I’m a Benz.”
The move to charge up the Lakers came after another prominent NBA center, Alonzo Mourning, agreed to a $105 million deal with the Miami Heat.
This made O’Neal, who recognized his value both as a player and as a brand, think differently about his next contract. He ultimately signed a seven-year, $121 million contract with the Lakers after prolonged talks with the Magic brass to re-sign him left O’Neal with lowball offers and a bad taste in his mouth. However, while Shaq’s confidence in his worth was evident, his ability to manage his wealth was something he had to learn over time — a lesson that began with his mother.
Shaq’s mother played a pivotal role in helping him understand the importance of financial literacy. After being selected by the Orlando Magic as the first overall pick in the 1992 NBA draft, O’Neal remembered a conversation with his mom that laid the groundwork for his money mindset.
“My mom said balance a checkbook, and I couldn’t. I couldn’t balance that,” O’Neal recalled. “She said, ‘Baby, listen. You can do what you want to do, but you’re not ready.’”
That simple advice stuck with him, and Shaq committed to learning how to manage and grow his wealth, ensuring his family would never live in poverty again.
Shaq Shares Lessons Learned
His journey from financial uncertainty to savvy investor has been remarkable. Though his mother’s wisdom laid the foundation, it was a piece of advice from Amazon founder Jeff Bezos that helped O’Neal take his wealth to the next level.
“I heard Jeff Bezos say one time [that] he makes his investments based on if it’s going to change people’s lives,” O’Neal said in a 2019 interview with The Wall Street Journal. Shaq embraced this approach, using it as a guiding principle for his investments.
While Shaq doesn’t specify exactly when or where he heard Bezos’ advice, he mentioned being at a tech conference in Las Vegas when it struck a chord with him.
“If you invest in things that are going to change people’s lives, you will definitely get a nice return,” O’Neal shared with CNBC.
This mindset has led Shaq to make lucrative investments, including his stakes in well-known franchises such as Papa John’s Pizza, Five Guys, and Auntie Anne’s.
O’Neal’s business acumen also extends to his involvement with Authentic Brands Group, a company that manages brand acquisitions and celebrity likenesses.
After agreeing to sell his own brand to Authentic Brands Group for a significant sum, O’Neal reinvested half of that money back into the company, setting him up to be the second in command when it comes to ownership responsibilities.
This strategic move has solidified O’Neal’s position as a key player in the business world.
Despite his many successes, Shaq hasn’t always made the best investment decisions. On a September episode of the “GOAT Time” podcast, O’Neal revealed to his son Myles that he once lost a $20 million deal over a joke about being a flat-earther.
“I said the Earth was flat one time, and I lost a f—ing big deal on that,” Shaq said. The backlash was swift, with O’Neal receiving more than half a million hate emails, and the potential partnership pulled out of the deal.
Despite setbacks like these, Shaquille O’Neal continues to thrive, using both his early lessons and newfound wisdom to build his empire.
With investments that are changing lives and a financial portfolio that grows by the year, setbacks like a $20 million loss are just bumps in the road for a man now focused on turning his “Benz” brand into a Bentley-worth brand.
This is proving by where he stands in light of his other entrepreneurial basketball peers. Today, O’Neal stands as one of the wealthiest NBA superstars in history, behind players such as LeBron James, Magic Johnson, and Michael Jordan.
