Current and former NBA players are always looking out for investment opportunities to ensure they keep churning money even after they bid adieu to basketball. Shaquille O’Neal is a master of it. The Hall of Famer’s net worth has surpassed $400 million due to his incredible investment portfolio. His partner on TNT, Charles Barkley, hasn’t been as active in investing his wealth but made a peculiar investment in 2018.
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The former Phoenix Suns superstar was a guest on Shark Tank and was persuaded to spend $250,000 on a company called Cave Shakes that sold vegan milkshakes.
Entrepreneurs Holly Heath and Billie Cavallaro pitched their gluten-free and dairy-free milkshake brand to the sharks, including Dallas Mavericks minority owner Mark Cuban, seeking $250,000 for a 10% stake in the company.
While the rest of the crew bowed out of the running, Barkley stuck around and offered $250,000 for a 20% stake. The entrepreneur duo made a counteroffer of 14% equity for $250,000, which the Hall of Famer laughed off but kept his initial offer on the table.
Cuban and the other sharks questioned Barkley’s motive and he admitted it was an emotional decision. He said that he had struggled with weight issues since retiring and was intrigued by the product as it would help people get in shape.
After some bargaining, Heath and Cavallaro eventually caved and gave Barkley a 20% stake in Cave Shakes. Cavallaro was the one who pushed for Barkley’s involvement in the company as they believed his star status might pull in many athletes to become long-time customers of their products.
Six years since the deal, the company is still afloat but has made some changes.
Was Barkley’s investment in Cave Shake a shrewd one or a waste of money?
Soon after Barkley invested $250,000 in Cave Shake, the company rebranded and named itself Space Shake. But the brand hasn’t been a game-changer product, which would be a disappointment considering they have Barkley on board.
The product has been criticised for not understanding consumer demand and sentiments, as it is not a mass brand by any means. This is also why athletes have not been keen to endorse the brand and its positioning could make it confusing for them even as customers. Additionally, the company has not had a strong social media presence since August 2022.
Since the brand isn’t publicly traded nor are its books open to the public, it is unclear just how profitable the business is or how much Barkley’s $250,000 investment has grown.
However, given that the brand has a decent market presence in its home state of California, it could be assumed that Chuck’s stake hasn’t devalued. The company is still run by Heath and Cavallaro.
Barkley’s emotional decision to invest in the company may not have yielded massive growth in his personal wealth, but it showcased that he has a big heart and is willing to invest in people passionate about their dreams.
