While Shaquille O’Neal is considered to be the game’s most dominant force, the Los Angeles Lakers legend has also made a name for himself in the world of finance, thanks to his successful business ventures. Owing to his smart investments and wise decision-making, Shaq is currently worth well over $400 million. After doing some research on income and taxation during his playing days, the Big Aristotle even figured out a strategy to save $1.25 million. By involving his parents in his business and paying them hefty salaries, Shaq devised a clever way to evade the IRS’ demands.
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Even before he entered the NBA, the 7-foot-1 big man had aspirations of making his parents financially stable for the rest of their lives. Without even knowing what taxes were, but wanting to fulfill his goal of providing for his parents, a young Shaq purchased two cars worth a quarter ($250,000) of his first paycheck. However, over time, Shaq learned how to better handle his money.
Instead of giving the money to IRS, Shaquille O’Neal paid salaries to his parents
Shaq is known for his acts of generosity. He’s often been in the headlines for his charitable acts, whether it be providing necessities for the underprivileged or handing out a huge tip at a restaurant. This giving gesture of the big man has pretty much become a routine.
During an interview with DJ EFN and N.O.R.E on the Drink Champs podcast, the 4-time NBA champ even revealed how he gave six-figure salaries to both of his parents after making it to the NBA. Talking about saving money from the IRS, the Diesel disclosed offering his father $500,000 and his mother $750,000 as yearly salaries. A huge advocate for education, the Hall-Of-Famer even taught his parents the nitty-gritty of the business.
“I learned about business not from college, I learned about business from a book called “The Dummies’ Guide To Starting Your Own Business”. And the first thing I did was incorporate my family. First thing I did was incorporate “Shaq” and then I put my mom on salary and put my dad on salary. And I got them an office and got them a car.
How much you make in the army? Only make $60,000? Now you making half a million a year. He started crying. Mama, how much you wanna make? You now make $750,000 a year, put them on like a real (payroll), and also had to teach them the business.”
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“Instead of giving it to the IRS, you’re giving it to your family. That way you can write it off,” DJ EFN simplified Shaq’s strategy.
Known for his massive fortune, we are all well aware of Shaq’s major investments and assets – 24-Hour Fitness Centers, 150+ car washes, and multiple nightclubs, among many other ventures. Shaq also owns food chains, restaurants, shoe lines and stocks in several companies.
Having been actively involved in investments since early on in his career, Shaquille O’Neal now enjoys nearly a half a billion dollar net worth.
Shaq’s partial ownership at ABG
While he has made investments in Apple, Google, and other companies, the 2000 MVP’s association with ABG (Authentic Brands Group) is the crown jewel of his portfolio.
After O’Neal’s “Shaq” brand was acquired by ABG, the NBA legend was offered several shares in the company. With ABG now reaching a valuation of $12.7 billion, being the second-largest individual shareholder of the company, Shaq’s bet has been paying off.
With the larger part of his net worth coming in the form of investments, several youngsters in the league can learn a thing or two about money management from O’Neal.
