How Shaquille O'Neal once turned down a Starbucks deal for weird reason and it made Magic Johnson $100 million richer
Following his Hall of Fame career, Shaquille O'Neal has been very successful in the business world. However, there was one major opportunity that slipped through his fingers.
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. In the end, he didn't think it had the potential to be successful. Part of what led him to this decision was that he didn't grow up around a lot of coffee drinkers.
"The owner of Starbucks said, ‘Shaq I want to open up a Starbucks in the hood?' And I’m thinking about where I’m from. I’m like ‘That ain’t gonna work in the hood.’ I told him to his face.”
"Cause like I’m thinking hood, but I didn't know nothing about regentrification and all the stuff they doing. ... I turned it down and Magic Johnson did it. [He] made a lot of money."
Magic Johnson wins big on Shaquille O'Neal mistake
While Shaquille O'Neal didn't have much interest in opening up a location in the inner city, another LA Lakers icon did. Starbucks approached Magic Johnson with the same idea, and he thought it was great.
Ultimately, it did prove to be a good business venture. The NBA legend went on to open over 100 locations. By the time he sold all of his franchises, Magic had made over $100 million.
Magic Johnson reportedly earned $100M from selling Starbucks franchises & stake in LA Lakers: onforb.es/1lnsDT7 http://t.co/uhuLQDVCbX
Following the move, the Hall of Fame point guard said the venture with Starbucks "changed everything" for him.
“That deal changed everything,” Johnson said, according to CNBC.
“We built 125 stores. We made that deal happen and that’s what really put me on a path of success. … It showed everybody that I could drive ROI in urban America.”
Despite how everything turned out with Starbucks, Shaquille O'Neal does not have any regrets. Instead, he found other ways to improve the area he grew up in.
“That’s why when we say educate yourself, it’s not all about going to school. It’s just like learn, like you gotta know what’s going on in your neighborhood,” O’Neal expressed.
“I know where regentrification is now and Newark cause I’m doing it. Me and my group, the Boraie group, were responsible for tearing down the projects and building condos."