Shaquille O’Neal stands tall in the sporting world, both literally and figuratively. After ruling the NBA the way he did, Shaq was bound to, and he did end up a rich man post retirement. No, a correction: a very rich man. Then again, he did not retire, did he?
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With $290 million stashed in his account — his career earnings — O’Neal had what many of us mere mortals would term as a ‘rich people problem’. What to do with the money?
The big man did not sit back and relax. Instead, he did what he used to do best on court. Suited up, and took charge. From the courts to boardrooms, the transition was reminiscent of the offensive transitions the Lakers were known for during his day. And, he has, reportedly, almost doubled that amount through the many businesses he embarked upon since ending his NBA career.
Shaq recently spoke about the challenges he faced managing his multi-million dollar portfolio.
“I didn’t want to be broke when I was done playing,” he said on Mexican podcaster Roberto Martinez’s talk show, explaining that his ambitions or motives were not purely financial.
“I was getting so much money that I didn’t know what to do with it. Like, they say put it in the bank. But what if the bank shuts down?” O’Neal quipped.
For most, keeping some funds in the bank is a no-brainer. But Shaq’s wealth was such that even federally insured institutions wouldn’t be liable to recover the full amount.
The Big Aristotle explained, “Right, like the FDIC only insures $200,000, so I can’t put $10 million in the bank. If it shuts down, I’ll only be able to recover $200,000.”
The Federal Deposit Insurance Corporation (FDIC) insures the money people deposit in federal banks in the US. They insure up to $250,000 per depositor as cover for extraneous circumstances like the closure of a bank. They act as a guarantor of sorts. That works great for an average person, with a finite amount of savings, say 100,000 or so.
Shaq is no average Joe. When he was in the NBA and cashing cheques into the millions, he stood to lose more than he made if he had banked (pun intended) on banks.
“When you learn all this stuff and you master all this stuff, when you’re done playing, you get to maintain the same lifestyle,” the 15-time All-Star concluded.
O’Neal has done extremely well in his post-retirement life, running a business empire. And, when he shares nuggets such as these, on money or business, his success ensures people take note.
The Shaquille O’Neal school of business
“My leadership style is always based on championship teams,” Shaq explained, narrating how his experience in the NBA has helped him build winning teams for all his businesses, including the booming ‘Big Chicken’ franchise.
It hinges on one of his cardinal rules: “the greatest leader is the one that hires people that are smarter than them.“
He never wants to be the smartest person in a room and has learned to leverage the expertise of different professionals to help him make the best decisions for his businesses. It helps, no doubt, that the 7-footer has the perfect personality for bringing people together.
O’Neal revealed that he uses his sense of humor to lighten the mood and create more equal dynamics with his employees.
“When you’re dealing with humor, you’re focused on the relationship. If your focus is to accomplish a task, you’re dealing with seriousness,” the four-time NBA champion explained.
If you’re still a skeptic about his business acumen, then consider this small number from his long list of records and stats. $500 million. That’s the approximate value of his business empire.
