“Shaquille O’Neal, you just spent $9 million in a day, what about taxes?”: When the Lakers legend’s accountant educated him about taxes after he splurged his first-year salary

Back in 1996, Shaquille O’Neal signed the biggest contract at the time, however, splurged his entire first-year salary without knowing the tax policies of Los Angeles.

With his net worth estimated to be around $400 million, today, Shaquille O’Neal is one of the very few retired NBA superstars who is smart in the business decisions he takes. However, there was a time when Shaq was younger, carefree, and wasn’t as wise as he is today.

Back in 1996, the Los Angeles Lakers trusted a 24-year-old O’Neal with the key to their franchise when they offered him a whopping 7-year, $120 million contract, the biggest at the time.

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Shaq, who wasn’t very aware of the tax policies of Los Angeles, ended up spending almost the entire amount of his first year’s salary.

“I was upset with myself. I really was”: Shaquille O’Neal

On a recent podcast appearance with Gary Vaynerchuk, The Diesel revealed how he ended up splurging $9 million on houses and cars as soon as he received the then-largest contract in American sports history. The Hall-Of-Famer told the 46-year-old entrepreneur:

“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.”

Shaq then disclosed how his accountant educated him about the difference in the taxes policies in Florida and in California. Due to the 50% increase in the income tax, the center only earned $10.9 million and not the complete $20 million.

“You just spent your whole first-year salary.”, to which he responded, “No! 20 million, I only spent about 10!”

Despite being young, Shaq was upset and disappointed in himself.

“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.”

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