Thread by @JoePompliano

Shaq is an incredible businessman.

He reportedly still makes $50 million annually through endorsements and even invested in Google's Series A at a $100 million valuation (now worth $1.5 trillion).

But one business deal stands far above the rest.

Here's the awesome story 👇

1) Let's start with some history.

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

So Shaq had a tough decision to make:

Nike or Reebok.

2) Shaq met with Nike first and made his desire clear:

"I wanted my own shoe."

But Nike declined, as they had just signed Alonzo Mourning.

"That pissed me off...they didn’t escort me out, but the meeting was short.”

Next up, Reebok.

3) After Nike declined to offer him a signature shoe, Shaq received a $15M offer from Reebok — which included a signature shoe & apparel line.

Even better?

Shaq demanded complete creative control.

“I wanted to create all of my own commercials.”

They obliged, and he accepted.

4) 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 — that benefitted Reebok with millions of dollars in sales.

But one interaction ended up changing everything.

5) 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.

6) Shaq took what she said to heart though, and realized many families couldn't spend $150+ on new basketball shoes.

So he left Reebok and started his own line.

But where would he sell them?

"I asked myself, who is the largest retailer in the world?"

The answer was Walmart.

7) So for the last two decades, @SHAQ has been selling his shoes at Walmart — with most retailing for $15-$30, compared to $150+ at Nike.

But here's the best part.

While others have laughed, Shaq has been selling.

In total, he's sold more than 200 million pairs.

8) And there's a reason Shaq was comfortable leaving some money on the table.

He owns:
• 150 car washes
• 17 Auntie Anne's
• 40 24-hr fitness gyms

He also invested in Google, Lyft, Ring, and Vitamin Water.

And at one point, he owned 155 Five Guys — or 10% of all locations.

9) But ultimately, I love this story for one simple reason.

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.

Now that's incredible.

10) If you enjoyed this thread, you should:

1. Follow me; I tweet interesting sports business stories every day.

2. Join more than 61,000 others and subscribe to my free daily newsletter where I break down the business and money behind sports.
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11) I also recently started a new YouTube channel.

The latest video breaks down the business behind Michael Jordan, including the business deals that helped him become the richest athlete in sports history.

I think you'll enjoy it. Check it out 👇

Here's another great Shaq/Walmart story:

After he was traded from Miami to Phoenix, Shaq went to Walmart and bought everything from pants & shirts to TVs & a computer for his new apartment.

The final bill came out to $70,000 & it was the largest purchase in Walmart history 😂

But nothing beats these photos of Shaq and Bill Gates hanging out back in the day