Millionaire Shaquille O’Neal Chose to Invest in Google But Rejected Starbucks for Mind-Blowing Reason (2024)
Shaquille O’Neal is one of the best centers to have ever played in the NBA. During his prime, he was a dominant force and someone who was feared by many players. But he is not just about his brute force. He is also one of the smartest guys with a sharp business mind.
Shaq is a successful athlete when it comes to investments and brand association. He didn’t sit around and spend all his NBA earnings for nothing. Instead, The Big Shamrock learned about investing and used his hard-earned money with a calculated risk.
With this, O’Neal has built his business empire from the ground up and is now an inspiration to the youngsters.
ADVERTIsem*nT
Article continues below this ad
Shaquille O'Neal was one of the original investors in Google and VitaminWater but passed on Starbucks because he didn't drink coffee
It is no secret that Shaq invested in Google but now there is news breaking up stating his reason for not investing in Starbucks. And it has nothing to do with the market or stock predictions. The Lakers legend simply didn’t invest in Starbucks because he doesn’t drink coffee. Yeah, you read that correctly.
When Shaq’s agent called him about investing in Starbucks, Shaq hilariously rejected because when he was growing up he hasn’t seen people in his community drink coffee.
Shaquille O’Neal and his business empire
But O’Neal admitted it was one of his worst business decisions. And he also said that now he sees a Starbucks shop on every corner in every city of the country and he regrets it.
On the positive side, Shaq invested in Google’s Series A in 1999. He placed a $100 million valuation on the table with a gut feeling that it would give him a huge profit. Fast forward to 2022, the company’s estimated value is about $1.89 trillion.
In an earlier interview, Shaq revealed he follows Jeff Bezos’ investment strategy. He said that following Bezos’ strategy; he started investing in companies based on how it changes people’s lives. And he said that it helped him to quadruple his worth.
ADVERTIsem*nT
Article continues below this ad
The Big Diesel also loves franchising a lot. It was reported that he owned around 40 fitness centers and 150 car washes. Shaq has also owned hundreds of restaurants. He is a brand ambassador for Papa John’s and owns 9 units. Shaq is also the owner of 17 Auntie Anne’s Pretzels restaurants.
There is a glaring statistic that states a staggering 60% of former NBA players go broke within five years of retirement. But Shaquille O’Neal clearly doesn’t fall under the category, thanks to his mentality towards investment and business.
The Lakers legend simply didn't invest in Starbucks because he doesn't drink coffee. Yeah, you read that correctly. When Shaq
Shaq
After a season-and-a-half with the Suns, O'Neal was traded to the Cleveland Cavaliers in the 2009–10 season. O'Neal played for the Boston Celtics in the 2010–11 season before retiring.
https://en.wikipedia.org › wiki › Shaquille_O'Neal
's agent called him about investing in Starbucks, Shaq hilariously rejected because when he was growing up he hasn't seen people in his community drink coffee.
Shaquille O'Neal once turned down what later became a lucrative deal for someone else. Starbucks franchisee opportunity: During an episode of Drink Champs, O'Neal explained Starbucks CEO Howard Schultz once offered him a chance to become a franchisee of a location that would open in the hood.
Some franchises Shaq invests in are Papa John's, Krispy Kreme, and Big Chicken. Shaq's investments include franchises, startups, real estate, and stocks. Shaq has stakes in tech startups like Google, Ring, and NRG Esports. He invests in real estate, including properties in Miami, Atlanta, and Las Vegas.
But one thing he's never done is drink coffee, and his lack of affinity for lattes caused him to make one of his biggest investments mistakes of his life. “My biggest mistake was not investing in Starbucks,” O'Neal tells CNBC Make It.
Shaq owns nine Papa John's restaurants in and around Atlanta. He has also appeared in Papa John's commercials and other advertising which is part of the criteria he required. He not only purchased nine franchises, but he also sold the company the right to use his likeness and voice for $8.5 million.
' I told him to his face,” he explained. Why O'Neal declined: He simply didn't feel as if the business decision would be in his very best interest when he considered his family and the people from his neighborhood, who he doesn't recall being avid coffee drinkers.
Back in 1998, the CEO of Starbucks approached Shaquille O'Neal about becoming a franchisee. At the time, the company was trying to expand to new locations and markets that they hadn't touched in the past. After giving it some thought, the 15-time All-Star decided to pass on the opportunity.
When he invested in Google, it had a $100 million valuation. Today, Google is worth 1.89 Trillion, and Shaq still has some of his shares. “He said you know what you're good with kids, I like you. I'm going to bring you in on this investment.”
Founded in 1985, Papa John's is one of the largest pizza delivery companies in the world with more than 5,000 stores around the globe. O'Neal owns nine Papa John's pizza franchise locations, which equals holdings worth in the neighborhood of $7 million.
Vanguard Group, Inc., is the largest shareholder of the company, having 9.19% shares. Individual shareholders like Howard Schultz also own a significant percentage of the company.
Johnson also was an early investor in Starbucks. From 1998 to 2010, Johnson's company-owned more than 100 Starbucks. In 2010, Magic Johnson Enterprises sold its stock in Starbucks. The Los Angeles Lakers champion walked away with $100 million from the deal, The Sports Rush reported.
For example, Shaq has owned and sold 155 Five Guys locations. This accounts for 10% of Five Guys' entire franchise portfolio. That's a lot of hamburgers that Shaq has made possible. Five Guys is an American fast casual restaurant chain focused on hamburgers, hot dogs, and French fries.
Shaq built a commercial empire since his professional basketball career was over, making money from both his own unique initiatives and other corporate endeavors. The Big Diesel has a substantial and diversified investment portfolio that includes 50 distinct companies.
One of the greatest basketball players of all time has said that he owns the rights to royalties from famous figures such as Elvis Presley and Marilyn Monroe. This investment resulted from Shaq's astute business sense, as he spent around $135 million to purchase these rights.
Of the 242 investors Schultz approached, 217 rejected his idea. By 1986, he had raised the money he needed to open the first store, Il Giornale, named after the Milanese newspaper of the same name.
Shares of Starbucks (SBUX 0.46%) sank on Friday after the coffeehouse leader's sales and profits failed to meet investors' expectations. As of 1:35 p.m. ET, Starbucks' stock price was down more than 3%.
A Starbucks spokesperson indicated that the decision was not about the political climate, however. The decision to suspend the buyback program was “Starbucks' agenda, and only Starbucks' agenda.”The other big factor, then, is workers.
Shaquille O'Neal attends his 51st Birthday Celebration at The Bank on March 10, 2023 in Atlanta. Shaquille O'Neal is calling foul on the lawyers who chased him for months to serve a lawsuit accusing the basketball legend of duping investors in FTX crypto exchange.
Earvin “Magic” Johnson — you know him as a legendary basketball player, but most people are not aware of his business genius. Magic Johnson started an initiative to build 125 Starbucks stores that earned him millions of dollars.
Furthering its commitment to innovate and transform the tea industry and enhance the consumer tea experience in the U.S. and internationally, Starbucks Coffee Company (NASDAQ:SBUX) has agreed to acquire Teavana Holdings, Inc. (NYSE: TEA) in an all-cash acquisition.
Moreover, Google (Alphabet) has a huge value as of today. According to sources, its current value stands at $1.89 trillion. This means that not only did Shaq's investment work, but it will also pay dividends like never before. Currently, Shaq's net worth stands at around $400 million.
O'Neal also owns 17 Auntie Anne's Pretzels restaurants and has invested in nine Papa John's restaurants. In addition to putting his money into 150 car washes, 40 24-hour gyms and a movie theater in his native Newark, he also runs his own fast-food chain. In 2018, he founded the Big Chicken brand of chicken sandwiches.
The top individual insider shareholders of Google are Larry Page, Sergey Brin, and Sundar Pichai, and the top institutional shareholders are Vanguard Group Inc., BlackRock Inc. (BLK), T. Rowe Price Associates Inc., and FMR LLC.
Big Chicken is a fast-casual chain specializing in chicken burgers. Shaquille O'Neal is the founder of this restaurant. Big Chicken started in 2018 with a menu that features Shaq's “childhood favorites”.
SHAQ MOTORS INC is dedicated to providing the ultimate automobile buying experience. SHAQ MOTORS INC is your #1 source for buying a quality pre-owned vehicles.
The reason he said this is because he is currently the 2nd largest individual shareholder in a company called Authentic Brands Group. This company deals with the acquisition of brands and retailers. In their portfolio is the likes of Forever 21, JC Penny, and like Shaq said, Elvis Presley.
Who has earned the most money from their NBA career? LeBron James has made the most money from their NBA career, racking up $528,992,480 over the span of his 20-year career. Kevin Garnett, Kobe Bryant, Shaquille O'Neal, and Kevin Durant help to round out some of the other top spots.
Tata Starbucks Private Limited, formerly known as Tata Starbucks Limited, is a 50:50 joint venture company, owned by Tata Consumer Products and Starbucks Corporation, that owns and operates Starbucks outlets in India. India.
In 2017, Starbucks bought out its joint venture partner in China for $1.3 billion, assuming full ownership of (at the time) around 1,300 stores, in addition to the 1,500 it already owned outright (via BBC).
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain. Pike Place Market, Elliott Bay, Seattle, Washington, U.S.
Now, Johnson owns 125 locations of Starbucks coffee shops, each more successful than the last. He also counts several Burger King restaurants, movie theaters, insurance brokerages, and gyms in his vast portfolio.
SEATTLE (AP) — Nestle is paying more than $7 billion to buy the rights to sell Starbucks coffee and tea in supermarkets and other stores outside its coffee shops. The deal comes with a huge price tag for Nestle, but it could pay off big for the Swiss company.
McDonald's is a publicly-traded company, with a considerable percentage of its shareholders being institutional. The top 5 institutions with the most significant stake in McDonald's include The Vanguard Group Inc, SSgA Funds Management Inc, BlackRock Fund Advisors, Wellington Management Co.
Today, Nestlé distributes Starbucks consumer products and foodservice beverages across more than 80 markets outside Starbucks retail stores under the Global Coffee Alliance. The total global sales of Starbucks products distributed by Nestlé in 2021 reached CHF 3.1 billion.
The 4-time NBA champion received his Ed. D. degree in Human Resource Development. His doctorate degree has a focus on organizational learning and leadership.
Big Chicken, the star-powered fast casual concept founded by Hall of Famer Shaquille O'Neal, announced today the opening of its newest restaurant at 9595 W Tropicana Avenue in Las Vegas.
1. Michael Jordan Net Worth - $2.2 Billion. Viewed by many as the greatest player in NBA history, Jordan has turned his basketball acumen into a multi-billion dollar enterprise.
He played fifteen seasons in the NBA, winning six NBA championships with the Chicago Bulls. Jordan is the principal owner and chairman of the Charlotte Hornets of the NBA and of 23XI Racing in the NASCAR Cup Series.
Shaq invested in various companies which turned out to be gold. To date, his biggest investment has to be The Authentic Brands Group. The company bought Reebok, Barneys New York, Forever 21, and a host of other brands and retailers.
O'Neal is reportedly the second highest individual shareholder of the Authentic Brands Group. This company is responsible for many brand and retailer acquisitions, including Forever 21, Reebok, Barneys New York and JCPenney.
Technically speaking, Shaq isn't the owner of these brands. However, he signed a deal with Authentic Brands Group back in 2015, which awarded him the licensing rights to these brands. According to Essentially Sports, the Lakers legend spent $135,000,000 to make this deal happen.
Shaquille O'Neal has a few real estate ventures. Besides his $16 million home in Miami, he also owns 15 acres in Atlanta that he purchased for $1.5 million, as well as a Las Vegas estate he paid $1.95 million for.
O'Neal was a candidate for an endorsem*nt deal with Nike, the sneaker giant based in Oregon state. When the Hall of Fame center was drafted, though, he snubbed Nike and signed a deal with less-popular Reebok.
He also owns 17 Auntie Anne's Pretzels restaurants and nine Papa John's franchise units. In fact, O'Neal is a brand ambassador for Papa John's and has been on the pizza company's board of directors since 2019.
READ MORE: Step inside the Papa John's Shaq built. Papa John's owns about 70 percent of the joint venture. Shaq invested roughly $840,000 for the restaurants' acquisitions costs of $2.8 million, according to a securities filing. As Ritchie mentioned earlier in the year, the ground-level impact is pretty clear.
He not only bought nine franchises but also sold the company the right to use his likeness and voice for a cool $8.5 million. Shaq has also been a board member since 2019 and also a brand ambassador for the popular restaurant franchise.
JCPenney and Forever 21 are under the Authentic Brands Group together with other retail brands such as Reebok (which Shaq was a former endorser), and Barneys New York. Since 2015, Shaq has owned interests in the Authentic Brands Group.
O'Neal only currently owns one location in Atlanta but says he would like to own many more and told The Wall Street Journal that Krispy Kreme is his favorite business endeavor. “I like doughnuts, and Charles Barkley loves doughnuts,” he said. “And he's my biggest customer.
Shaq now revealed the incredible story of why he decided to start selling affordable shoes, eventually even turning down a $40 million contract with Reebok. One of the reasons was a random woman who went off on him because kids could not afford the high priced shoes of the athletes.
He partnered with Walmart selling shoes for $15-$30, compared to typical $100+ prices. Shaq said, “I went to my favorite store, Walmart, and we did a deal. I was in all stores, and my price point for the shoes was $29 to $19. And since then, we have sold over 400 million pairs.
Krispy Kreme applied for building permits for the new shop in December 2021. At the time, construction was estimated to cost $1.4 million. Construction prices have fluctuated since then, and it is unclear if that estimate has changed. NBA Hall of Famer Shaquille O'Neal owns the franchised doughnut shop.
Address: 55021 Usha Garden, North Larisa, DE 19209
Phone: +6812240846623
Job: Corporate Healthcare Strategist
Hobby: Singing, Listening to music, Rafting, LARPing, Gardening, Quilting, Rappelling
Introduction: My name is Foster Heidenreich CPA, I am a delightful, quaint, glorious, quaint, faithful, enchanting, fine person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
