Shaquille O'Neal is known for his slam dunks on and off the court, but he passed on one major opportunity that still stings today – a deal with Starbucks SBUX. In a revealing interview, Shaq shared why he turned down a chance to partner with the coffee giant, something Magic Johnson later jumped on and made millions from.
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Years ago, Starbucks CEO Howard Schultz approached Shaq with a business proposition. Schultz wanted to open Starbucks locations in underserved communities, specifically in the “hood,” and saw O’Neal as a perfect partner to make it happen. It seemed like a promising opportunity, but Shaq wasn't convinced.
"I could have been the first one to open up a Starbucks in the hood," Shaq said during an episode of Drink Champs. "But I was like, ‘That ain't gonna work in the hood.' I told him to his face."
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Why He Turned It Down
Shaq had reasons for saying no due to his growing-up experience. He didn't see coffee as a part of life in his community. In fact, his family never drank it.
"Growing up in my household, I'd never seen a Black person drink coffee," Shaq explained. "In my house, it was always sweet tea or hot chocolate. So, when Howard Schultz said he wanted to open up a Starbucks in the hood, I didn't think it would work."
Shaq added, "I ain't know nothing about gentrification and all the stuff they were doing at the time." He genuinely believed coffee wouldn't catch on in those neighborhoods.
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Magic Johnson Steps In
While Shaq passed on the deal, Magic Johnson saw the potential and took it. In 1998, Johnson partnered with Starbucks to open over 100 locations in inner cities across the U.S. The move turned out to be a massive success for Magic financially and in terms of his reputation as a business owner.
Magic later said the deal "changed everything" for him, proving that investing in urban communities could drive real growth and return on investment.
Even though Johnson made millions from the deal, Shaq has no hard feelings about missing out. Looking back, he stands by his decision, based on his upbringing and what he thought would work best for his community.
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"I was just trying to stay true to my roots 'cause nobody in my family drank coffee," he said.
Instead of focusing on what could have been, Shaq found other ways to give back. He's now working to improve his hometown in Newark, New Jersey, through real estate development.
"I know what gentrification is now and I'm doing it," Shaq said, explaining how his real estate ventures are creating jobs and revitalizing the city.
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While Shaq missed out on the Starbucks fortune, his focus on uplifting his community hasn't wavered. He's showing that success isn't just about making money – it's about giving back and making a real difference. And for Shaq, that's what matters most.
“Me and my group, the Boraie group, were responsible for tearing down the projects and building condos … so we charge some people but let people do Section A. We giving people jobs, so we're beautifying the city."
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So, while every Starbucks on every corner might remind him of the deal he passed up, Shaq's still proud of his choices – both in business and life.
Starbucks has performed better than the market over the last 20 years, beating it by 2.7% annually and giving investors an average yearly return of 11.11%. The company is valued at $110.8 billion. When Starbucks named Brian Niccol as its new CEO in August of this year, the stock surged by about 20%, adding over $15 billion to its value.
If someone had invested $100 in Starbucks stock 20 years ago, it would now be worth $828.39.
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