The Cornerstones Of Shaq’s Wealth

Shaquille O’Neal is one of the world’s most successful athlete-turned-businessmen, whose accomplishments both on and off the court have translated into a highly sought-after consumer brand. As an entrepreneur, sports analyst, DJ, restaurateur, and brand ambassador, Shaquille O’Neal’s signature “Business of Fun” mantra resonates throughout each of his countless endeavors. 

With a net worth of $400 million, Shaquille O'Neal is the poster child of how a pro-athlete can exponentially increase their wealth after they have retired. O’Neal was a larger-than-life character both on and off the court during his playing days, racking up earnings of $292 million during his career through his salary and slew of endorsements. He reportedly still makes $50 million annually through endorsements and even invested in Google's Series A at a $100 million valuation (now worth $1.5 trillion). He is a great athlete, investor and businessman. Let’s delve into how he made his net worth.

Shaq Was One of the Highest Paid Players In NBA History

Shaq’s heyday of the 1990s (making his NBA debut in 1992) saw him dominate the court in an era of basketball icons in which he and Michael Jordan were at the very top. While Jordan was known for his explosive jump shots and points tallies, Shaq was known for his shooting percentage, blocks, rebounds, and scoring. In his first season after being drafted by the Orlando Magic, he was named both an All-Star and Rookie of the Year.

This led to him signing the biggest NBA contract in history at the time - $120 million for seven years with the LA Lakers. Testament to his longevity, Shaq’s highest-paid year came almost a decade later, during the 2004-2005 season, making over $27.5 million with the Miami Heat.

While high salaries and endorsements are standard for elite athletes during their careers, Shaq became a business mogul when he stopped playing.

Trainer deal

When Shaq entered the NBA in 1992, signature shoe deals were all the rage — from Clyde Frazier and Puma in 1973 to Michael Jordan and Nike in 1985. Shaq had to choose between two major sports 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.” Next up, Reebok. After Nike declined to offer him a signature shoe, Shaq received a $15M offer from Reebok — which included a signature shoe & apparel line. 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 him 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. 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 But she smacked it out of his hand. Shaq took what she said to heart though and realised many families couldn't spend $150+ on new basketball shoes. So, he left Reebok and started his own line. So for the last two decades, has been selling his shoes at Walmart with most retailing for $15-$30 Nike. In total, he's sold more than 200 million pairs.

Shaq explained “I started the Shaq brand. I went to my favorite 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.” Shaq added: “It’s not kids that don’t want to wear $20 shoes, they don’t want to wear shoes that look like they cost $20.”

Franchise Maverick

O’Neal became synonymous as the pitchman for multiple franchises. However, the affable giant wasn’t just the face of many of the companies he fronted but also owned sizeable stock options and multiple stores.

Amongst the franchises he owns, they include:

• 9 x Papa Johns (he endorsed the pizza company for $8.5 million)

• 17 x Auntie Annie’s Pretzel Restaurants

• Owned and sold 155 Five Guys ((he was a 10% owner of the company at the time)

• 40 x 24-hour Fitness

• 150 x Car Washes

• 1 x Krispy Kreme

Real Estate

In addition, Shaq has a multimillion-dollar real estate portfolio, including a high-rise apartment building he constructed in his hometown of Newark, NJ at a cost of $80 million. His portfolio includes Las Vegas nightclubs, a cinema and a strip mall.

Being an expert in so many fast food companies, it was inevitable that O’Neal would create his own. He launched Big Chicken in 2018 with JRS Hospitality and Authentic Brand Group. Big Chicken serves jumbo-sized portions of chicken sandwiches and is currently in 10 locations in the US

Authentic Brand Group

One of Shaq’s most surprising income streams is derived from American icons, including Elvis Presley and Marilyn Monroe. Shaq revealed on the Earn Your Leisure podcast that he is part owner of the royalties, likeness and marketing rights used in merchandising of the King of Rock’n’Roll.

"I don't like to seem like I'm bragging, but I'm going to ask you a question. Who owns Marilyn Monroe?” Shaq asked the presenters. ”Who owns Elvis Presley? Who owns Forever 21? Who owns JCPenney? Me!” Shaq explained, "My real business is I own 50 brands.”

Shaq’s branding splurge began in 2015 when he signed with Authentic Brands Group to manage his likeness and marketing rights. As Shaq often does, when signing with a company, he buys shares in the company. Over the years he increased his share percentage until he eventually became the second-largest individual shareholder of the brand management entity. Other brands/ likenesses rights Shaq owns through the deal are Muhammad Ali, David Beckham and Barney’s New York.

Conclusion

In business, Shaq has exhibited the same skills he did on the court — awareness, acumen and aggressiveness. Shaq is acutely aware of his brand as a much-loved, larger-than-life character. He is known for putting his name to mainstream American products, focusing on affordability and accessibility.

More so than many celebs, O’Neal has an acute sense of who he is and who his audience is and he caters to them through charities, the Walmart deal and reinvesting in his own business. Although the financial details of his deal with ABG aren’t known, he has ensured his status both as a legendary basketball player and an equally talented businessman.

Shaq listened to the needs of the customer, ignored what was popular, blazed his own trail and ended up creating massive businesses.