How Shaquille O’Neal Has Built An Incredibly Successful Business Empire
Shaquille O’neal himself had an impressive NBA career. The Big Aristotle won MVP honors in 2000, won four championships, won eight NBA first-star team awards, and made 15 All-Star Game appearances. He had his jersey removed by two different franchises: No. 34 with the Los Angeles Lakers and No. 32 with the Miami Heat.
Yet O’Neal’s second career as a businessman could be even more incredible. Here is an overview of his investment strategy, as well as some of his smartest investments.
O’Neal said to Wall Street newspaper last year, he saved 75% of his income, referring to an analogy that a man had shared with him.
“I met a man once. He had a piece of paper. He said,” It’s $ 100. “” After tearing the paper in half, the man said to O’Neal, “Smart people invest that $ 50 and then we have $ 50 left.”
However, the man added that wealthy people took half of that $ 50 and put it aside, so O’Neal started doing it. He encourages all investors to follow the same strategy of investing 75% of their income and living on the remaining 25%.
It may not always be doable, but it’s a good reminder to be smart with your money – something O’Neal struggled with when he entered the league. He bought expensive cars for his mother, father and himself, and also paid for his mother’s house. Within an hour, he had spent $ 1 million.
O’Neal is much more strategic with its money these days. And his net worth has increased considerably as a result.
Snacking on food investments
Regarding investments, let’s start with Shaq’s most recent decision. Just 14 months ago, Papa John’s recruited O’Neal as an endorser, franchisee and board member. The company paid Shaq $ 4.1 million to endorse the brand, adding nearly 90,000 shares as a sweetener. Papa John’s recently announced a nearly 27% increase in sales in the first quarter of 2020 compared to the previous quarter. That makes Shaq’s action alone worth $ 7 million.
Shaq is also a global spokesperson for Krispy Kreme and has its downtown Atlanta boutique, open for more than half a century. In 2016, JAB Beech, which also owns Keurig, Caribou and Peet’s Coffee, bought Krispy Kreme for $ 1.35 billion.
It is unclear how much Shaq earns under his spokesperson agreement. However, Krispy Kreme had $ 887 million in sales last year in the United States, so O’Neal certainly benefits. In keeping with the fast-food theme, O’Neal has a total of 17 Auntie Anne locations across Buffalo, NY, and Michigan.
O’Neal owned 155 Five Guys restaurants, which was 10% of the company’s entire franchise portfolio. He has since sold his stake but said the hamburger business was a “very good” investment.
Integration in the automotive and travel sectors
Despite his healthy appetite for food, O’Neal has also invested in inedible opportunities. He is said to have more than 150 car washes across the country, a regular source of income that can function fairly reliably.
O’Neal became the spokesperson for general auto insurance in 2015, appearing in advertisements and other marketing materials. The comic juxtaposition of Shaq next to the tiny animated general has delighted fans for years.
You’ve also probably seen O’Neal playing in commercials for Carnival Cruise Line. The big man plays an important role of Chief Fun Officer, and he provides updates on new business features.
Build a real estate empire
Shaq firmly believes in real estate as an investment vehicle. He created The O’Neal Group to find these kinds of opportunities and partnered with MDM Development to create Met Miami, a complex in downtown Miami. It holds a thousand units and stands at 866 feet tall, making it one of the tallest residential skyscrapers in the country. The complex also includes a Marriott hotel, a 24-hour gym and several office workspaces.
The O’Neal group launched into cinema in 2012, buying and renovating a cinema in Newark, where Shaq grew up. The theater was in disrepair, but after $ 7 million in renovations, the CityPlex 12 theater reopened. It included 12 new screens, a digital projection, stadium seating and 3D capability. Of course, O’Neal put a personal mark on one of the theaters, a 300-seat auditorium called Shaq-DX.
A first step in technology companies
O’Neal has also made some smart technological moves. He was a pre-IPO investor in Google – an opportunity that he scored after a baby-sitting concert – and also invested in Apple.
In 2016, Shaq discovered Ring, the home security system for doorbell cameras. He was so impressed with the company that he found founder Jamie Siminoff. Shaq starred in several commercials, invested in the business, and made a good cash amount when Amazon bought Ring for more than a billion dollars.
Shaq can also claim to be the very first verified account on Twitter. It didn’t make him any extra money, but it’s an interesting thing he can point out.
The Shaq business line
Standing at 7’1 “and weighing over 300 pounds, Shaq stands out quite easily in a crowd. He has used this to his advantage, building a brand around his larger-than-life frame and personality. He created costumes, sneakers, Shaq brand jewelry and his own children’s books. Yes, you can recover a copy of Little Shaq to read next time, you need a few encouraging words from the big guy.
Of course, like any solid businessman, O’Neal has made a mistake or two when it comes to investing in companies. A long time ago, when he started his NBA career in the 1990s, O’Neal had a conversation with Howard Schultz, the CEO of Starbucks. Schultz offered O’Neal the chance to be the only franchise for the coffee company.
As O’Neal says: “So I looked at Howard Schultz’s big face and said,” Black people don’t drink coffee, sir, I don’t think it’s going to work. “And you should have seen the expression on his face.”
Schultz finally offered the franchise contract to Magic Johnson. Johnson sold 105 Starbucks franchises in 2010, earning approximately $ 70 million.
Yet O’Neal has done exceptionally well for himself over the years. He probably has more investment in his massive sleeves too. Based on his background, we bet on their success.