What caused Shaquille O’Neal to walk away from a multi-million dollar contract to sell $15 sneakers?
A man of pure charisma
Shaquille O’Neal has not only been one of the most dominant centers in the history of the NBA but he’s also been one of the most charismatic off-court players that the world of sports has ever known.
If you like Shaq, then you’re going to love him after reading this
Shaq’s charisma is the only way to explain how he successfully abandoned Reebok, and one of the best sponsorship contracts in the NBA, to sell his own sneakers at Walmart. If you already liked Shaq before reading this story, you’ll love him by the time you finish it.
We travel back to 1992
It all started back in 1992 when a very young and very promising Shaquille O’Neal arrived in the NBA, where he joined the Orlando Magic as the team’s number-one draft pick.
Nike and Reebok compete to sponsor Shaq
Nike and Reebok, two of the sports world’s most influential firms at the time, wanted the future NBA star on their sponsorship roasters. But Nike took the first steps to close a deal with Shaquille O’Neal and set up a meeting before Reebok had their chance.
Nike prioritized Alonzo Mourning over Shaq
In that meeting, Shaq asked Nike for his own line of sneakers. But the company denied his request since they had just signed a sneaker deal with Alonzo Mourning. So Shaq took a meeting with Reebok where his request for a sneaker line was met by more receptive ears.
Reebok cuts a deal
Reebok not only guaranteed Shaq his own line of sneakers but the company also gave him complete creative control of the project. The result was a huge success, anyone who was alive during the early-1990s would remember Reebok’s Shaq Attaq shoes with their inflatable tongues and catchy marketing.
The Reebok success story
From 1992 to 1998, Reebok released six Shaq models, every one of which sold out and earned the company millions of dollars in sales. But everything changed when Shaquille O’Neal crossed paths with an unhappy mother.
The mother who changed everything
The Orlando center was leaving the Magic’s Arena one day when a mother, with her son in toe, scolded Shaq for selling his Reebok sneakers at such a high price.
She didn’t want Shaq’s money
Shaquille O’Neal responded by offering the woman $2,000, but she refused it and slapped Shaq’s hand away, an injury that would do more damage to his soul than to his giant hand.
Shaq’s realization
It was at that moment that Shaquille O’Neal realized that not every family could spend $150 or more on a pair of sneakers, so he looked for a solution.
Goodbye, Reebok; hello Walmart
The first step was to break his agreement with Reebok, reportedly worth $40 million US according to the New York Post, and create his own line of sneakers, but where could he sell them? The answer was simpler than expected: at Walmart.
Millions of sales
Walmart readily agreed to Shaq’s proposal and for more than two decades Shaq-branded shoes have been sold at the retail giant for between 15 and 30 dollars, well below the price of Reebok’s 1990s Shaq Attaq sneakers. Footwear News has estimated that more than 400 million pairs of sneakers have been sold at Walmart since beginning their partnership with Shaquille O’Neal.
A financial wizard
This anecdote showed the world why Shaquille O’Neal’s vision as an entrepreneur and his mentality of understanding his customer is still earning him $50 million a year, even in his retirement.
An empire built
And it is that spirit of entrepreneurship, in addition to his deal with Walmart, that has helped the former NBA star amass a business empire. Today Shaq is known to own 155 Five Guys restaurants, 150 car washes, 40 24-hour gyms, a large shopping center, and several nightclubs in Las Vegas, according to Celebrity Net Worth.
He also invested in Google… in the 90s!
And that’s not all, Shaq even had the vision to invest in Google back in the 90s, making it clear that the muscle that’s worked best for him over the years has always been his brain.
Currently worth $400 million
This all accounts for his whopping net worth, which as of March 2023 is estimated to be around $ 400 million US by Celebrity Net Worth.
The people’s hero
And of course, when you hear stories like the one about his sneakers, you can’t help but be happy for Shaquille O’Neal and his success, despite the fact that he starred in the Superman spinoff ‘Steel’ in 1997… a film that could be a considered crime in several countries.
Source: MSN