The average career span of an NBA player is 4.5 years. That is a very small portion of a person’s life. Although the income is significantly more than that of an average person, the lack of security could lead many into financial hardships. Hakeem Olajuwon was well aware of that and found a way to earn more post-retirement than he did from his cumulative NBA salary.
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The Houston Rockets legend wasn’t as marketable as some of his contemporaries despite being sensational throughout his 18-year NBA career (1984-2002). He didn’t have brand endorsements to ensure earnings following his playing days. Olajuwon had earned $97,356,426 in his career.
For context on how much the league has changed, Utah Jazz forward John Collins’ current contract is worth $125 million. Stars of the past did not have the same financial luxury as current players, even if we consider inflation while comparing. And Olajuwon picked real estate as his area and began to learn more about the business.
In a feature for the New York Times, Olajuwon revealed what made him lean toward real estate.
“I like real estate because, you know, it’s real,” Olajuwon said. “The first thing I’d notice was the architecture. I like clean lines.”
The former center used the money he had saved during his career to purchase expensive land. He then started to flip his investments.
Only four years after his retirement, Olajuwon had earned an estimated $100 million in profit. All of his transactions came in the Houston area, where he had spent the majority of his NBA career.
And his success is largely attributed to the timing of his purchases and sales. The properties he bought were always those in areas that were set to boom with further development shortly.
For instance, he bought land near Houston’s new light-rail line and near Minute Maid Park, the city’s baseball stadium.
He also reportedly purchased parcels in the central part of Houston, and at major intersections and highway exits. The two-time NBA champion made a profit by reselling them within one or two years of purchase.
“I try to see its potential; what it could be used for,” explained Olajuwon. “I have been blessed thus far to be able to work with my own capital, which gives me the ability to decide when I want to sell as opposed to having a bank loan hanging over my head that in some cases, can force you to sell even though you may not be ready to.”
That $100 million profit figure was from 2006. Almost 20 years later, it is estimated that the former player has a $300 million real estate portfolio.
Olajuwon is a savvy businessman
Countless NBA stars go broke after their NBA careers. The lifestyle of a celebrity is hard to maintain, considering how short NBA careers last. Olajuwon was bent on not falling down that path once he stepped away from the game.
He has paved the way for many athletes after him to understand, prioritize, and make smart financial investments. His business ventures are a perfect example of that understanding.
Hakeem launched the DR34M Mansion, which was an ambitious real estate project. He sought to create a property that could serve as a venue for many events, such as weddings.
One of his major passions is sharing the game of basketball with the next generation. Olajuwon hosts multiple basketball camps throughout the year. The most well-known being ‘Hakeem Olajuwon’s Big Man Camp’.
The two-time NBA champion’s activity in business is an exemplary demonstration of how proactive players should be post-retirement.
