Popular online estimates of Shaq’s net worth place it at around $400 million. However, these estimates likely undervalue his true financial standing.
Shaq generated $292 million from his NBA contracts and approximately $200 million in endorsements while playing.
More interestingly, he has made millions from his diverse portfolio of investments, including car washes, restaurant chains, and gyms.
In a 2013 interview, Shaquille O’Neal told CNBC anchors that he didn’t miss playing basketball, stating, “I’ve always been a businessman who is athletic.”
This statement encapsulates the dual identity of Shaq: not just a towering presence on the basketball court but also a shrewd and successful entrepreneur.
Shaq wasn’t always savvy with his money. Famously, he blew his first $1 million check in just thirty minutes. This financial recklessness changed when Magic Johnson offered him some crucial advice: “It’s ok to be famous, but you want to start owning things.”
Before Shaq could fully embrace ownership, he supplemented his NBA income with extensive sponsorships from brands like Reebok, PepsiCo, Icy Hot, JCPenny, and Taco Bell. His partnership with Reebok began in 1992 with a $15 million multi-year deal.
However, Shaq turned down a $40 million contract with Reebok after a woman criticized him for charging high prices for shoes.
Instead, he partnered with Walmart to create Shaq Shoes, affordable sneakers that sold for as low as $12. Despite initial doubts, he has sold over 400 million pairs.
Investing In A Stable Portfolio
Shaq began acquiring small businesses while still in the NBA, and his investment flywheel has only grown in retirement. Here are some of his known investments:
- 155 Five Guys restaurants: This represents 10% of the company’s entire franchise portfolio.
- 150 car washes
- 17 Auntie Anne’s pretzel stands
- 9 Papa John’s locations
- 40 24-Hour Fitness gyms
- 18 Shaq’s Big Chicken restaurants
In a 2018 interview, Shaq said, “A lot of athletes, when they are done playing, have no income and go broke, and I’ve never wanted to be like that.”
He advises new NBA players to “save it, invest it, and be smart.” Despite this advice, CNBC found that 60% of players go broke within five years of leaving the league, often due to bad business deals.
Shaq’s investment portfolio demonstrates his avoidance of risky, trendy investments. Instead, he focused on “boring” but stable businesses like burger joints, gyms, and car washes.
These enterprises have been around for decades, if not longer, proving their resilience and profitability. By investing in these tried-and-true business models, Shaq has added hundreds of millions of dollars to his net worth.