Shaquille O’Neal has made a lot of money from endorsement deals and some wise investments in successful companies over the years. An established businessman with a net worth of almost half a billion dollars, Shaq knows the power of smart and early investments. But he was not so wise always.
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When he was much younger, the idea of investing and equity did not make sense to the Diesel. As he revealed in a 2020 interview with Vanity Fair, Shaq once gave up $20 million in equity from Bill Gross, the founder of the Pasadena-based tech startup Idealab, because he wanted cash instead.
Gross later revealed that he met Shaquille O’Neal following the latter’s trade to the Los Angeles Lakers in 1996. The Lakers superstar drove to meet him, where they had a discussion about teaming up to create a new company called Big.com. Gross was convinced that he could create a competitor to Amazon and was keen to bring Shaq on board as the face of the brand.
Unfortunately, things didn’t go as planned. Shaq demanded $20 million in cash. However, Gross wanted to give him the same, but in equity in the company.
At the time, O’Neal had just signed with the Los Angeles Lakers, and while he was interested in business, the idea of equity was foreign to him. Therefore, he rejected the deal, simply because he wanted cold hard cash.
The Vanity Fair interview records the incident,
“According to the Idealab founder, Shaq wanted $20 million for his role in the company in cash. Gross was willing to give him that much in equity, but the basketball star wouldn’t have it…The basketball star attributes his stance, at least on his part, to inexperience: ‘When you’re younger, you’re trying to keep it all in cash.'”
Shaq credited his investment fortunes to Jeff Bezos, CEO of Amazon. “I heard Jeff Bezos say one time that he makes his investments based on if it’s going to change people’s lives, and once I started doing that strategy, I think I probably quadrupled what I’m worth.” #OwnSomeShit pic.twitter.com/EAXveNJjQy
— Ayesha Selden, CFP® (@AyeshaSelden) November 19, 2020
Since then, Shaq has done his homework. His investment portfolio is a big part of his massive net worth. He has found an incredible amount of success as an equity shareholder and is the second largest shareholder in the Authentic Brands Group. The group holds the naming rights of icons like Marilyn Monroe and Elvis Presley. It’s safe to say, the big man is a big player in the investment game now.
Shaq credits his failures for all of his success
Michael Jordan made headlines years ago when he spoke about failure. Known for being a perennial winner, Jordan claimed that his numerous failures were the reason why he succeeded in life.
Along the same lines, Shaquille O’Neal has also used his failures to find success. He spoke about how disappointment makes one stronger, and that it’s important to learn from mistakes and never make them again.
Clearly, this philosophy has been working wonders for him. And, given all his success, Shaq continues to be a shining example for all those who aspire to be like him.
