Shaquille O’Neal has continued to be a prominent figure even after retiring from the NBA thanks, in part, to a wide range of endorsement deals. The Hall of Fame center learned from his early financial mistakes and has built a business empire, which has helped him grow his net worth to $500 million.
Advertisement
O’Neal doesn’t shy away from sharing his past mistakes in order to help others understand where he went wrong. He believes in passing on the knowledge to the younger generation, to help them make smarter financial decisions.
In 2018, O’Neal took a unique route to teach an important financial lesson. He tore a piece of paper in half to explain to the new generation of stars how much of their fortune they should be saving and how much they should be spending.
In essence, Shaq encouraged the professional athletes of today to save and invest the majority of their income but to enjoy spending a lot of their money too. Considering a good number of NBA players are bringing in eight figures a year, it’s important that they’re financially responsible.
He took the paper in his hand and assumed it was a hundred-dollar bill. He tore the piece of paper in half and kept one piece aside. “$50, save it.” Continuing his demonstration, he ripped the paper in half once more. “Now the smart people, the real smart people, the billionaires of the world, they’ll take half of that $50, put all that away.”
“This right here, have fun,” he continued, holding up a quarter of the original piece of paper.
Shaq encouraged athletes to use that last portion of the money to their heart’s content but warned them not to touch the funds they’ve put away. “You wanna buy houses, you wanna buy cars, you wanna buy planes, you wanna travel, this right here’s what you have fun with,” O’Neal said with the last scrap of paper in his hand.
Shaq admitted to making mistakes when he was young and sincerely wanted to keep athletes today from falling into the same traps.
Shaq’s investment strategy isn’t always perfect
Shaquille O’Neal has partnered with dozens of brands over the years, skyrocketing his net worth in the process. The four-time champion was paid like a superstar during his prime years, but compared to what players make today, it doesn’t seem like much. As a result, Shaq had to keep working in order to build his fortune.
In an interview from 2015, O’Neal shared one of his biggest regrets, describing an investment deal he didn’t take. The 15-time All-Star had a chance to partner with Howard Shultz and open up Starbucks stores in African American communities. However, because he didn’t believe Black people drank coffee, he declined the offer.
Shaq explained that he doesn’t back anything he doesn’t 100% believe in. “So I looked at the great Howard Shultz’s face and said ‘Black people don’t drink coffee sir, I don’t think it’s gonna work,'” he responded.
Shaq knows that was one of the worst business decisions of his career. Now, there’s a Starbucks in every city, and O’Neal knows he could’ve have added a hefty amount to his fortune.
