Despite Cashing $1,000,000 Check, Shaquille O’Neal Astonishingly Owed the Bank $90,000 in 1992

Shaquille O’Neal always finds his name on top of the list when making big money moves. One of the first instances of him splurging lavishly was when he received his first $1,000,000 paycheck after getting drafted in 1992. However, that spending led him to a much bigger realization. After spending that cheque, Shaq came to know that he owed the bank $90,000, given his $1,000,000 check was only worth around $500,000 to $600,000 after tax deductions. In his book Shaq Uncut, the Big Aristotle revealed how this realization led him to hire an accountant to keep his spending in check.

Although that incident portrayed Shaq as a careless person when it comes to money, but he is not. He is easily one of the smartest business minds in the NBA, having a Master’s degree and Ph.D. in management studies. However, the lesson he learned from his first spending spree was a wake-up call for him to diligently manage his expenses and finances.

Shaquille O’Neal owed the bank $90,000 after receiving his first NBA paycheck in 1992

Shaquille O’Neal’s first spending spree after getting drafted into the NBA is a much-fabled tale now. It is a lesson for every emerging athlete to learn how to manage their fame, finance, and expenses diligently. Shaq spent his first $1,000,000 lavishly, buying his parents Mercedes-Benz cars and other expensive accessories for himself. However, the young Diesel, at that time, wasn’t cognizant enough to note the tax deductions incurred on his million-dollar paycheck.

After splurging the cash on a spending frenzy, Shaq received a call from his bank. The bank employee calmly explained on the line, “Mr. O’Neal, I don’t want bad things to happen to you like other athletes we’ve dealt with. But I think you should know you owe us ninety thousand dollars.” 

This revelation from the employee startled Shaq, who had just realized his blunder. Shaq’s first paycheck was only worth around $500,000 to $600,000 with tax deductions. This is when he realized that he needed an accountant. Shaq elaborately described this moment in his book, of which the excerpt is attached below.

“At first I was confused, but then he explained to me by the time you take that $1 million and deduct all the taxes, it really is only worth between $500,000 and $600,000. Damn. I hung up the phone and I told my mother, ‘I need an accountant.'” 

Shaquille O’Neal did get an accountant who helped him manage his finances after that. Following this, Shaq was cognizant enough of his business choices, catapulting his now net worth to around $400,000,000.

Shaq hired an accountant to help manage his financial portfolio

Following the blunder, Shaq’s agent Leonard Armato arranged several meetings for the emerging superstar to hire an accountant. One person who left a lasting impression on Shaq and his parents was Lester Knispel. Knispel was immediately hired as Shaq’s accountant and helped him in his various financial successes.

Knispel played a crucial role in managing Shaq’s portfolio, including once rectifying a missing profit margin from a car wash business. With over a quarter million dollars missing, Knispel could finally keep Shaq in check with his money-related shenanigans. In his book, Shaq heavily credits Lester Knispel for helping build his financial empire, which now stands stronger and sturdier than ever.