How Shaquille O’Neal Became the Second Largest Investor in the Company That Owns Reebok, JCPenney and Forever 21 (2024)
Shaquille O’Neal may be most commonly known for his celebrated career as an NBA star. But the former athlete is also an avid businessman, working behind the scenes on some of the biggest deals in retail.
O’Neal is the second-largest individual shareholder of Authentic Brands Group, the company behind dozens of brand and retailer acquisitions, including Forever 21, Barneys New York, JCPenney, Reebok, Vince and Hunter Boots. The retail powerhouse, led by CEO Jamie Salter and president and CMO Nick Woodhouse, last month announced the creation of “Authentic Studios,” a production studio that leverage Authentic’s sprawling brand portfolio to produce film, TV and commercial content. The studios currently consist of four labels, includingO’Neal’s Jersey Legends, which recently produced SHAQ, a a four part HBO docuseries.
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Authentic was awarded Company of the Year at the annual FN Achievement Awards in New York in 2021.
O’Neal has owned shares in Authentic since 2015, when the company bought the rights to his name brand. It was then that the former athlete made a decision that would turn him into the second-largest individual shareholder at the company.
As Salter previously explained in an interview with FN in Authentic’s New York offices in 2021, moments before O’Neal closed the deal to sign away half of his brand proceeds to Authentic, he turned to Salter with an idea.
“[O’Neal] says, ‘You know all that money you’re going to give me?'” related Salter. “I said, ‘Yeah.’ He says, ‘I’d like to invest it in ABG.’ And I said, ‘Hold on, I don’t understand. You need to explain that to me.’ He says, ‘I’m doing a deal with you to sell you 50% of everything I have going on for the rest of my life. Do you think I trust you?’ And I said, ‘I hope so.’ He says, ‘Why wouldn’t I be partners with you. We’re going to build this company together.’ And that’s how he became the second-largest shareholder of ABG.”
Salter described the relationship between the two as a “marriage,” where both partners took bets on one another. Six years later, these bets seemed to have paid off.
“If someone says, would you stand in front of a freight train for Shaquille O’Neal, the answer is yes because he’s a real partner,” Salter said. “I don’t believe that ABG would be where we are today without Shaq, and I don’t believe that Shaquille O’Neal would be where it is today without ABG. So it really is something super special.”
O’Neal said he was initially attracted to Authentic because the operation centered around fun, family values and getting things done.
“I wanted to partner with a company that could perhaps have my name go on forever,” O’Neal told FN. “I met with a lot of companies, but when I met with Jamie and his family, I knew that this was the right place to be.”
During his time at Authentic, O’Neal has played a role in many investments. In the case of Reebok, hewas adamant that the company make a competitive offer to acquire the footwear label from Adidas.
“Being that I’m partners with [Jamie] — the brand master and reviver, the guy who works magic — I told him, ‘I think you should get Reebok,’” O’Neal told FN. “He never said no. And then one day I wasn’t even thinking about it and he said, ‘I got a big surprise for you. I’m going to send you something. I want you to sign it. Don’t look at it, just sign it.’ So I signed it. He said, ‘Congratulations, my friend, we own Reebok.’ And it was one of the best days in my life.”
And just this week, Authentic appointed O’Neal to the newly created position of president of Reebok Basketball, part of Authentic’s long-term strategy to become a major player in team sports and focus on Reebok’s commitment to performance basketball.
“This is not a consulting role. This is not a figurehead announcement where we create a cool title and then he goes away and calls me once in a while,” Reebok CEO Todd Krinsky told FN. “He’s committed to how we reenter the basketball community, everything from product to marketing to events. He’s got a sharp point of view on things, but he’s also very collaborative and he’s open minded on how we can reenter.”
Reebok has also named NBA great Allen Iverson the VP of Reebok Basketball. In his new role, O’Neal — who signed with Reebok in 1992 and wore iconic signature shoes, such as the Shaq Attaq and Shaqnosis — will be tasked with leading the brand’s basketball category strategy and cultivating partnerships with athletes and organizations, with a goal of returning to dominance in the sport.
O'Neal has owned shares in Authentic since 2015, when the company bought the rights to his name brand. It was then that the former athlete made a decision that would turn him into the second-largest individual shareholder at the company.
Today, reports confirm that Shaq is the second-largest individual to own shares in Authentic Brand Group, which owns JCPenney, Forever 21, and, ironically, Reebok. While he may sell a hefty million shoes per month, O'Neal is no stranger to using the fortune he's amassed to help others.
Shaq's investment portfolio extends beyond franchises to include shares in various brands, covering sectors such as technology, beauty, fashion, and sports. Notable investments include Apple, Google, Lyft, Vitaminwater, and Ring.
Shaq owns part of The General, Gold Bond, Icy Hot, Buick, Marilyn Monroe, Elvis Presley, Forever 21, JCPenney, and more. Shaq is an investor, board member, and strategic advisor for several companies. He has served on the board of directors for Papa John's, a pizza chain, and Carnival Cruise Line.
However, he parted ways with the shoe company after an incident where he was confronted by a woman when leaving the Orlando Magic facility after a practice, which ultimately led to his decision to leave the brand.
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.
In late 2020, Simon Property Group (SPG) and Brookfield Asset Management (BAM)—two of the nation's largest property owners—purchased the company for $800 million. At the time of the bankruptcy, JCPenney held $4 billion in debt.
ATLANTA - An opening date has been announced for the all-new 4,000-square-foot Krispy Kreme shop on the site of the brand's historic Ponce de Leon location in Midtown Atlanta. It will open Oct. 10. The shop, which is owned by NBA superstar Shaquille O'Neal, was destroyed by arson in 2021.
Known as a true NBA legend, Shaquille 'Shaq' O'Neal has an estimated worth of $500 million in 2024. He's a mammoth at 7-foot-1-inch and 325 pounds, who ruled the NBA for 19 seasons.
While Shaquille O'Neal made his fortune as a basketball player, most of Shaquille O'Neal's net worth today comes from his business ventures. Most of his assets are likely in franchises, including Papa John's, 24 Hour Fitness, Krispy Kreme, and car washes.
O'Neal is the second-largest individual shareholder of Authentic Brands Group, the company behind dozens of brand and retailer acquisitions, including Forever 21, Barneys New York, JCPenney, Reebok, Vince and Hunter Boots.
Big Chicken is a fast casual restaurant chain in the United States. It was founded by retired Hall of Fame National Basketball Association star Shaquille O'Neal, along with JRS Hospitality and Authentic Brands Group.
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.
It's pretty clear. “When I got drafted, they gave me the opportunity to have my own shoe — Reebok,” O'Neal said. “Nike was interested, but they didn't want me to have my own shoe.” There's a legendary story O'Neal recently explained about how his negotiations with Nike went.
Consumers began to prefer more fashionable and lifestyle-oriented sneakers, while Reebok continued to focus on sports performance footwear. This led to a decline in sales and market share, as consumers moved away from Reebok's offerings.
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.
Shaquille O'Neal was a partial owner of Pure Nightclub in Las Vegas, a renowned establishment known for its vibrant nightlife scene. His ownership of Pure Nightclub reflects his foray into the nightlife industry and demonstrates his interest in entertainment and hospitality ventures.
Since he announced his retirement in 2011, the NBA star has become the owner of 155 Five Guys hamburger establishments, which represented 10% of the total company.
Hobby: Shopping, Table tennis, Snowboarding, Rafting, Motor sports, Homebrewing, Taxidermy
Introduction: My name is Duncan Muller, I am a enchanting, good, gentle, modern, tasty, nice, elegant person who loves writing and wants to share my knowledge and understanding with you.
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