Dear Entrepreneur, Here’s The Successful Story Of Shaq, The Incredible Businessman

By Getrude Mathayo / Published August 23, 2022 | 3:21 pm

KEY POINTS

When Shaq entered the NBA in 1992, signature shoe deals were all the rage from Clyde Frazier and Puma in 1973 to Michael Jordan and Nike in 1985. Shaq had a tough decision to make. He met with Nike first and made his desire clear, But Nike declined as they had just signed Alonzo Mourning.

KEY TAKEAWAYS

The 48-year-old has been quick to emphasize the importance of his step-father in forcing him to be stringent with his NBA earnings, as well as the fact he’s gone out of his way to learn more about business.

According to Joe Pompliano from Twitter, Shaq has reportedly still made $50 million annually through endorsements and even invested in Google's Series A at a $100 million valuation (now worth $1.5 trillion).

Shaquille O’Neal, also known as Shaq, is obviously the most famous for being regarded as arguably the best Basketball center of all time, but away from the court, he’s built up an esteemed portfolio that continues to bring in the cash.

Shaq had a hugely successful career playing professional basketball for 19 years, and even before retiring, he made a name for himself as a media personality and commentator.

According to Joe Pompliano from Twitter, Shaq has reportedly still made $50 million annually through endorsements and even invested in Google’s Series A at a $100 million valuation (now worth $1.5 trillion).

After Nike declined to offer him a signature shoe, Shaq received a $15M offer from Reebok, which included a signature shoe and apparel line. Shaq demanded complete creative control. They obliged, and he accepted.

From 1992 to 1998, the relationship between Shaq and Reebok flourished. They made six signature shoes together, and Shaq became a perennial NBA All-Star, which benefitted Reebok with millions of dollars in sales. But one interaction ended up changing everything.

In 1998, Shaq was leaving the Orlando arena when he was confronted by a mother. She was upset she couldn’t afford Shaq’s shoes for her son, so she cursed him out & asked why doesn’t anyone make affordable shoes. Shaq offered her $2,000 but she smacked it out of his hand.

He took what she said to heart though, and realized many families couldn’t spend $150+ on new basketball shoes. Shaq left Reebok and started his own line. But he asked himself where he will sell them and the answer was Walmart.

For the last two decades, Shaq has been selling his shoes at Walmart with most retailing for $15-$30, compared to $150+ at Nike. Shaq listened to the needs of the customer, ignored what was popular, blazed his own trail, and ended up creating a massive business that was more affordable.