Shaquille O’Neal, one of the greatest NBA players of all time is a man of many parts. From leading Los Angeles Lakers to three consecutive championship titles to becoming an incredible businessman with a net worth of over $ 400 million, Shaq as he is fondly called has built an empire of wealth by involving himself in a variety of profitable ventures.
From creating his brand to music, acting, tv appearances, commercials, endorsements and investments, Shaq reportedly makes a whopping $50 million annually. He was an early investor in Google, Apple, General Electric, E-Sport, Sacramento Kings, Ring, Pepsi, Lyft, Ring, Vitamin Water as well as Papa John’s among others. In his NBA career which lasted between 1992 to 2011, Shaq accumulated $292 million in salary. So where does the other $100+ million come from?
One business deal changed his life forever. Here is the captivating story.
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When Shaq joined the NBA in 1992, signature shoe deals were the order of the day — from Clyde Frazier and Puma in 1973 to Michael Jordan and Nike in 1985. So Shaq also wanted his shoe deal and had a tough decision to make between top brands: Nike or Reebok. Shaq met with Nike first and made his desire clear: “I wanted my own shoe.” But Nike declined, as they had just signed Alonzo Mourning. “That pissed me off…they didn’t escort me out, but the meeting was short.” Shaq was quoted as saying.
After Nike declined to offer him a signature shoe, Shaq received a $15m offer from Reebok — which included a signature shoe & apparel line.
Even better?, Shaq demanded complete creative control. “I wanted to create all of my own commercials.” They obliged, and he accepted. From 1992 to 1998, the relationship between Shaq and Reebok flourished. They made six signature shoes together, and Shaq became a perennial NBA All-Star — that benefitted Reebok with millions of dollars in sales.
But one interaction ended up changing everything forever. In 1998, Shaq was leaving the Orlando arena when he was confronted by a mother. She was upset she couldn’t afford Shaq’s shoes for her son, so she cursed him out & asked: “Why doesn’t anyone make affordable shoes?”
Shaq offered her $2,000. “I had $2,000 in my pocket. I said, ‘Lady I don’t make the prices. Here you go, and she smacked the money out of my hand, [and said], ‘Why don’t you motherfukers make a shoe that’s affordable?’” Shaq was quoted as saying this during one of his podcasts.
The scolding was a moment of realization for O’Neal, who decided to turn down his $40 million, 5-year deal with Reebok.
“I was like, ‘You know what, she’s right.’ So that day, I cut ties with Reebok and started my own brand,” he recalled. “I said keep the money, this ain’t right. I’ll still wear the shoes I wear during the season, but I’ll be looking to do my own thing. So, I started the Shaq brand.”
But where would he sell them? “I asked myself, who is the largest retailer in the world?” The answer was Walmart. So Shaq approached Walmart and a deal was struck for the production of affordable footwear for all.
“I went to my favourite store, Walmart, and we did a deal. I was in all stores and my price point for the shoes was $29-$19 and since then we sold over 400 million pairs.”
So for the last two decades, Shaq has been selling his shoes at Walmart with most retailing for $15-$30, compared to $150+ at Nike. But here’s the best part. While others have laughed, Shaq has been selling. In total, he’s sold more than 200 million pairs. And there’s a reason Shaq was comfortable leaving some money on the table.
Shaq also owns a total of 50 brands in different industries including 150 car washes, 40 24-hr fitness gyms, 17 Auntie Anne’s restaurants and Big Chicken which has a total of 10 locations in the United States. Additionally, he owns a movie theatre, a shopping centre, and a Night Club. He is also the second largest individual shareholder of Authentic Brands Group and at one point, owned 155 Five Guys restaurants. His first rap album, Shaq Diesel sold over one million physical copies on platinum.
Conclusion:
Shaq is a great manager and knows what it takes to run a business. He is always improving and innovating his brands. Shaq has the drive and determination to make sure all of his businesses are successful. And he likes to be involved in all aspects of his businesses. He is a great role model for aspiring entrepreneurs.
But ultimately, I love this story for one simple reason.
Shaq listened to the needs of the customer, ignored what was popular, blazed his own trail, and ended up creating a massive business empire that will serve as a reference point in the annals of history.
Now that’s incredible!
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