As with many sports, professional basketball players have a relatively short career. Following retirement, numerous NBA stars have gone on to have equally lucrative second careers, launching their own businesses. From Michael Jordan to Shaquille O’Neal, we look at five basketballers who became highly successful entrepreneurs.
1. LeBron James
LA Lakers star LeBron James has an estimated worth of $450 million, making him one of the richest athletes in the world. He earned $200 million throughout his 17-year NBA career. However, the lion’s share of James’s fortune came from his endorsements and investments.
One of the NBA’s most recognizable stars today, LeBron James has always shown an aptitude for business. In 2015, he entered into a “lifetime deal” with Nike, earning him a cool $1 billion to be paid over the course of his lifetime, according to reports. In addition, James owns stakes in Beats Electronics and Liverpool FC soccer team in the UK. James also founded the SpringHill Entertainment production company, and he owns a chain of 14 Blaze Pizza franchises.
In 2018, LeBron James joined forces with fellow celebrities Lindsey Vonn, Cindy Crawford, and Arnold Schwarzenegger, launching Ladder, a health and wellness company that specializes in high-performance sports supplements. He also has his own media company, and he has several multi-million endorsement deals.
2. Michael Jordan
Michael Jordan was the first professional basketball player to achieve billionaire status. Although NBA players earn phenomenal sums today, he did not amass all of his fortune from basketball alone.
Jordan’s main investment as an entrepreneur was buying a major stake in the Charlotte Hornets NBA team. He also earns hefty sums through endorsements with the likes of Coca Cola, Chevrolet, Gatorade, Upper Deck, 2k Sports, and McDonald’s, bringing in an estimated $80 million from corporate partners last year alone. In addition, Michael Jordan’s business empire includes a Motorsports team, car dealership, and six restaurants.
3. Dave Bing
David Bing is a former point guard. He is best known for his time with the Detroit Pistons from 1966 to 1977. He claimed the Rookie of the Year honor in his debut year. He also led the league in scoring in 1967 with a 27.1 point per game average. David Bing was elected into the Naismith Memorial Basketball Hall of Fame and was also inducted into the College Basketball Hall of Fame.
During the NBA off-season, Bing worked at a branch of the National Bank of Detroit. He rose quickly through the ranks, starting as teller and ending as branch manager. Following his retirement from professional basketball in 1978, Dave Bing transitioned fully to the business world. He also worked at Paragon Steel, a company owned by Bill Davidson, the owner of the Detroit Pistons basketball team.
In 1980, Bing took $80,000 in personal savings and a $250,000 loan and founded Bing Steel. This was the first in a series of companies that collectively became known as the Bing Group, a conglomerate primarily serving Detroit’s automaking industry. In 1995, he founded Bing Manufacturing, a company that supplied parts for major automobile manufacturers.
The Bing Group made history as one of America’s largest African American-owned manufacturing firms. Dave Bing subsequently entered politics. He was sworn in as Mayor of Detroit in May 2009, although in 2013 he announced that he would not be seeking reelection.
4. Shaquille O’Neal
Standing at a height of 7 feet 1 inch, “Shaq” is an imposing presence both on the court and in the business world. The NBA legend has made some shrewd investments over the years, backing Muscle Milk, Vitamin Water, and Google, to name a few.
O’Neal earned an estimated $292 million over the course of his 19-year-long career in professional basketball. However, a series of savvy investments set him in good stead to make more from his business ventures than he ever did in the NBA. With a current net worth of more than $350 million, O’Neal is predicted to continue to expand his business portfolio and wealth.
O’Neal’s investments include 155 Five Guys burger franchises, as well as a fleet of 17 Auntie Anne’s pretzel stands. He also owns 40 gyms under the 24-Hour Fitness brand and is part owner of several nightclubs. His latest acquisition was a chain of 150 car washes.
5. Magic Johnson
With a current net worth of $620 million, retired NBA star Earvin “Magic” Johnson has demonstrated a cool head for business in his lucrative second career as an entrepreneur. Johnson attributes his second-act success to the discipline he developed during his sporting career as well as his perfectionism and organizational skills, which he applies in his position of CEO.
Johnson founded Magic Johnson Enterprises in 1987 with the aim of providing products and services that primarily focus on ethnically diverse, underserved urban communities. The investment company has made a massive impact on Johnson’s local community, creating neighborhood partnerships that provide minority supplier opportunities.
When Johnson retired from the LA Lakers, he took his $40 million in earnings and grew it to $620 million over the course of two decades. This is an impressive feat by any entrepreneur’s standards.