Shaquille O’Neal is not only one of the most dominant NBA players but also a very intelligent businessman, which helped him build a fortune of over $400 million. Despite that, his selfless generosity had his accountant, Lester Knipsel, worried. But Shaq being Shaq, he was unbothered by his financial manager’s suggestion.
Advertisement
In his memoir titled ‘Shaq Uncut,’ O’Neal wrote,
“Lester worries about me sometimes, I know that. He says there is such a thing as being too generous. My feeling on that is you can’t take it with you.”
The 3x Finals MVP claimed he didn’t mind spending an exorbitant amount of money to care for his mother, Lucille O’Neal, stepfather, Phillip Harrison, and his three siblings, Jamal, Ayesha, and Lateefah. Shaq claimed that despite his willingness to spend money, his parents refrained from asking for anything out of the ordinary from their multi-millionaire son.
O’Neal added that Knipsel’s concerns were overblown. He was financially responsible enough to avoid any distant sibling or relative taking advantage of his willingness to help his family. He wrote,
“I want [my loved ones] to be happy, to enjoy this time of their life. Same for my brother and sisters. My family is everything to me. Now that doesn’t mean if some distant cousin from Georgia who claims we’ve got the same hairline shows up that he’s getting put on my payroll. I’m not that stupid.”
The Lakers legend has wisely invested his money over the years. In an interview with the Wall Street Journal, he revealed he follows Amazon co-founder Jeff Bezos’ investment mantra to make financial decisions. He said,
“I heard Jeff Bezos say one time [that] he makes his investments based on if it’s going to change people’s lives. Once I started doing that strategy, I think I probably quadrupled what I’m worth.”
Unsurprisingly, the mantra has worked for Shaq as he has investments in Google, Apple, and multiple fast-food chains, including Five Guys, Papa John’s, and Krispy Kreme, which gives him great returns. So, it would be right to claim that while he’s generous towards his family, he’s also shrewd with his money.
Shaquille O’Neal’s learning curve in money matters
Although Shaquille O’Neal is an intelligent investor today, he wasn’t always as careful. After signing a record-breaking seven-year, $120 million with the Los Angeles Lakers in the 1996 offseason, he spent $9 million almost overnight to live out his wildest dreams. On The GaryVee Audio Experience, O’Neal revealed,
“So now when I first get to LA, listen 120 through 7 (years). What’s that, what I made what 20 (million) a year something like that. So I get to LA now, I gotta floss, Gary. I’m going over and I’m looking at mansions in the hills. How much is this for me? Cash. How much is that Rolls Royce? 300,000? We get three of them, another million. Just straight cash.”
Upon learning of his client’s frivolous spending, Lester Knipsel explained to O’Neal that he had blown an entire year’s salary. The three-time Finals MVP revealed,
“[Knipsel said], You just spent your whole first-year salary.’ I said, ‘No! [My contract is worth] 20 million [a year], I only spent about 10!’ So when I saw my cheque with 10.9 million and I had spent 9 million. Boy, was I upset with myself. I really was.”
O’Neal did not factor in the federal and state taxes that he owed California. Experiences like these moulded him to become financially responsible. While he still lives his life lavishly and doesn’t shy away from spending money for his family’s needs, he’s earning way more than he’s spending, thanks to Knipsel’s counsel and his willingness to learn.
