Another NBA star has become an investor.

Considerable initial capital, a strong personal brand influence, and business insights highly relevant to the sports industry.

For professional sports athletes, the stereotype of "all brawn and no brains" is perhaps the greatest stigma. At least when it comes to making money, there are many successful sports stars both at home and abroad. Especially in the basketball world, NBA stars have long been at the forefront. Shaquille O’Neal, nicknamed "The Big Aristotle," is one such example.

Recently, on October 9th, alternative investment firm Jacmel Partners announced that Shaquille O’Neal has joined as a founding partner. The firm recently launched the investment platform Jacmel infrastructure, which focuses on key infrastructure across the United States, mainly in the transportation, energy, social, and digital sectors. "This investment marks my official entry into the infrastructure sector," O’Neal said. In fact, this is not the veteran's first foray into investing. Whether it was his early bet on Google or becoming the second-largest individual shareholder of brand acquirer Authentic Brands Group, O’Neal has demonstrated his courage and vision in investment.

Early Bet on Google: A Glimpse of Investment Vision

O’Neal is indeed very wealthy.

During his NBA career, after being selected as the first overall pick by the Orlando Magic in the 1992 NBA Draft, O’Neal announced his retirement in 2011. Over his 19-year career, he earned a cumulative salary of approximately $286 million, ranking ninth on the all-time NBA salary list. Additionally, in the brand and media sectors, as a commentator for TNT, he earns over $10 million annually. He also generates continuous income through endorsing brands such as Reebok and Pepsi, as well as participating in film, television, and music projects.

What deserves the most praise is his business investment. O’Neal has ventured into sectors such as catering, technology, and sports. He bought a stake in the Sacramento Kings, invested in Five Guys restaurants, Google, etc., and some of his investments have yielded substantial long-term returns. According to data from the "Celebrity Net Worth" website, Shaquille O’Neal's net worth is expected to reach approximately $500 million by 2025.

A well - known example in O’Neal's investment record is his investment in Google. Although the exact shareholding ratio is not public, the current stock price of Google, compared to its initial public offering price of $85 in 2004, is sufficient proof of his unique investment vision.

Moreover, O’Neal is the second-largest individual shareholder of Authentic Brands Group, which has acquired dozens of brands and retailers, including Champion, Barneys New York, Reebok, Vince, and Nautica. He has also launched two shoe and clothing brands, The Shaq and The Dunkman, with prices around $30.

Of course, while engaging in business practices, O’Neal also doesn't forget to supplement his professional knowledge. In 2000, he graduated from his alma mater, Louisiana State University, with a Bachelor of General Education degree. In 2005, he obtained an MBA (Master of Business Administration) from the University of Phoenix through online courses. In 2012, after retiring, O’Neal received a Doctor of Education degree in Organizational Learning and Leadership from Barry University, with a major in Human Resource Development.

Striving to Be a "Clever Boss": What Advantages Do NBA Players Have?

O’Neal's business success as an athlete is not an isolated case. The trend of "players becoming bosses" has long spread within the NBA.

Earvin "Magic" Johnson Jr., O’Neal's mentor, is one of the pioneers. Some people say that Johnson might be the richest NBA star. In 2009, Magic's business empire included more than 30 Burger King and TGI Fridays restaurants, 72 Starbucks coffee shops, 6 movie theaters, 5 24 - Hour Fitness centers, and 9 real estate companies. After selling his $100 million stake in Starbucks, his assets were at least over $1 billion.

After O’Neal, the late basketball genius Kobe Bryant also decided to invest $100 million to officially establish a fund company after retiring, focusing on investments in the technology, media, and big data sectors. In 2016, at the age of 38, Kobe, dressed in a handsome suit, rang the opening bell at the New York Stock Exchange, publicly announcing the establishment of the fund company "Bryant Stibel" with his partner Jeff Stibel.

Among active players, LeBron James is the most representative "Clever Boss." Through his SpringHill Entertainment company, he is involved in film and television production, sports rights, and consumer brand investments. According to Forbes, his net worth has exceeded $1.2 billion. Stephen Curry, Carmelo Anthony, and others have also established investment funds respectively, targeting emerging sectors such as food and beverage, fitness technology, and digital content.

If we were to summarize the commonalities, these NBA star player - investors generally have three advantages: considerable initial capital, a strong personal brand influence, and business insights highly relevant to the sports industry.

"Top athletes can successfully achieve sustainable growth of personal wealth through diversified investment portfolios, in - depth industrial chain layout, the use of financial innovation tools, and strict risk control. This comprehensive approach reflects the core concept of realizing the commercial value of top athletes in the modern economic and financial environment and is also an important trend in the future development of the sports economy," Sun Dan, a researcher at the China - Europe International Business School Lujiazui Institute of International Finance, wrote in a recent article.

Cross - Border Investment: How Are Chinese Athletes Performing?

Chinese athletes have never stopped exploring the capital market.

Around 2015, there was a wave of athletes flocking to PE/VC investments. For example, Yao Ming, the Chinese basketball superstar who also played in the NBA, has demonstrated remarkable investment abilities. Not long ago, during the NBA China Games, he made it onto the hot - search list for joking, "I'm going to talk to Andre Iguodala about my pension." At 45, he has reached the age to unlock his NBA pension.

Whether influenced by NBA players' pursuit of becoming "Clever Bosses" or not, Yao Ming's performance in the investment world is also remarkable. In 2004, while still in the NBA, Yao Ming ranked first on the Forbes China Celebrity List with a fortune of $120 million and maintained this ranking for the next six years. After retiring in 2011 and directly entering the investment field, in 2011, he participated in the establishment of Huangshan Equity Investment Fund Management Co., Ltd. Huangshan Capital focuses on sports industry investments, with core businesses including fund management, investment banking, and direct investment, specifically including fund and asset management, pre - IPO strategic investments, and domestic and overseas IPOs. In 2016, he also co - founded Yao Capital with Zhang Mingji, the head of Yao Ming's management team, and senior investors Zhu Gang and Quan Hong, focusing on growth - oriented investment opportunities related to domestic and international sports and healthy living.

In 2017, Yao Ming made it onto the Hurun Celebrity List again with assets of $2.2 billion, becoming the second - highest - ranked sports star on the list after Li Ning. In just a few years, Yao Ming completed the transformation from a sports celebrity to an investor. Even without the high NBA salary, his assets have increased several times over, perhaps demonstrating the charm of investment.

However, as the saying goes, "Everyone has their own specialty," and this also applies to investment or business in a broader sense. There are many sports stars who have transformed into investors, and many have faced setbacks. For example, a former world champion was once rumored to have squandered $2 billion.

Ultimately, investment is a game of the market, while the management system of Chinese competitive sports is not fully market - oriented. Information asymmetry, professional thresholds, and the balance between public image and profit and loss determine whether athletes can truly transform from "brand ambassadors" to "capital operators." Yao Ming's success lies in the fact that his management team is a mature American business operation team that understands market needs very well. Athletes may not consider making money as the top priority, but in business operations, those who don't make money will eventually be eliminated.

In this regard, rising star Fan Zhendong may be worth looking forward to. Not long ago, news spread that Fan Zhendong had invested in the Major League of Table Tennis (MLTT) in the United States, quickly going viral within the industry. The MLTT publicly "welcomed Fan Zhendong" on social media and emphasized that he would participate in the league's operation as a shareholder. This means that for the first time, a top Chinese player is participating in writing the rules of an overseas professional league through equity investment.

Anyway, commercial capital operation always involves both risks and rewards. There is still much room for improvement in China, whether it's in the transformation of athletes or the development of professional sports. At present, there are still too few cases like those of Yao Ming and O’Neal.

This article is from the WeChat official account "Dongsi Shitiao Capital." Author: Wei Xianghui, Editor: Liu Yanqiu. Republished by 36Kr with permission.