While basketball players’ yearly salaries do not necessarily match those of footballers at the highest level, the National Basketball Association’s (NBA’s) top 5 richest players of all time have created empires worth billions through historic brand deals and equity-based investments.
Here are the top 5 richest athletes to have played professional basketball in the NBA.
1. Michael Jordan (Net worth: $3.5 billion)
Six-time NBA champion and often regarded as the greatest basketball player of all time, Michael Jordan is a classic example of how an athlete can make a huge fortune through some clever brand deals, endorsements, and high-reward investments.
Gaining around $94 million in total through his NBA salary, with his highest single-season salary being $33 million, Jordan’s fortune was largely built outside the game. Jordan laid the foundation of his endorsement empire in 1984 with a “gamble” on Nike. Being a rookie in the league at the time, he signed a contract with a five per cent sales commission and an annual income of $500,000 that resulted in the “Air Jordan”, which subsequently went on to change the sneaker industry forever. Jordan’s mother, Deloris Jordan, has been popularly credited with nudging Jordan to choose Nike’s profit-sharing offer over Adidas’s fixed pay.
Additional deals with major brands like McDonald’s, Gatorade, and Hanes netted Jordan another $1.5 billion. Supplementing this wealth, Jordan also made diversified investments in luxury car dealerships in Florida, restaurant businesses, and a premium tequila brand. These ventures went on to further cement his status as the richest NBA player of all time, years after Jordan’s retirement.
2. Magic Johnson (Net Worth: $1.5 billion)
The second-wealthiest figure in basketball history, Johnson found financial success through business ventures that were centred around community development.
Initially, the former Los Angeles Lakers star signed a significant 25-year, $25 million ‘one-club contract’ in 1984. However, this contract alone wasn’t the sole factor in his current financial success.
During his illustrious playing career, Johnson amassed approximately $60 million from substantial endorsement deals, notably with PepsiCo. His career concluded suddenly in 1991 after he announced his HIV diagnosis. A pivotal moment in Johnson’s business ventures occurred post-retirement in 1998, when he invested in Starbucks. This investment reportedly yielded around $75 million when he eventually sold his stake.
3.LeBron James (Net Worth: $1.2 billion)
The first and only player in basketball history to become a billionaire while actively playing in the NBA, LeBron has amassed a wealth of over $1.6 billion throughout his career, where only about $480 million of that came from James’s NBA salary.
The four-time NBA champion’s financial ascent started at the humble age of 18 when he signed a groundbreaking 7-year, $90 million deal with Nike in 2003. LeBron James has built a billion-dollar empire through strategic investments and branding, all while dominating on the court. A significant part of this wealth stems from a lifetime contract, estimated at over $1 billion, making it one of the most lucrative endorsement deals in sports history.
Another major success was his early $1 million investment in Blaze Pizza. This 10% stake has since multiplied his initial investment a hundredfold, as the company is now valued at over $1 billion. His endorsement portfolio further diversifies his income, with major brands like Coca-Cola, Kia Motors, and Beats by Dre contributing over $700 million in endorsement income.
4. Shaquille O’Neal (Net Worth: $500 million)
Shaquille O’Neal, a four-time NBA champion, earned approximately $292 million in salary throughout his 19-season career. However, his most significant financial success occurred after he retired from professional basketball. Shaq has constructed a diverse and highly profitable empire, accumulating over $200 million in total earnings through endorsement deals with brands such as Reebok, Icy Hot, and Gold Bond, as well as regular television appearances and investments spanning from restaurant chains to tech startups. Renowned for his larger-than-life persona, Shaq consistently transforms media exposure into highly effective marketing. His enduring partnership with Reebok commenced in 1992 with a $15 million multi-year agreement, leading to the creation of the famous ‘Shaq Attaq’ sneakers.
Over three decades later, Shaq became President of Reebok’s Basketball operations, a move that prompted many netizens to comment about how Shaq’s career has come full circle, highlighting his sensational brand power. Shaq’s investment ideas were much ahead of his time as he purchased some of the earliest shares of Google and invested in Apple at a time when no one in the sports world had imagined doing so. His interest in innovation didn’t stop there, as he continued to finance startups in the smart voice assistant sector, with some of these ventures yielding returns exceeding 100 times his initial investment.
5. Vinnie Johnson (Net Worth: $500 million)
Vinnie Johnson, popularly nicknamed Microwave’ for his immediate offensive impact from the bench, was instrumental to the Detroit Pistons, contributing to two NBA championships between 1981 and 1991. Despite an NBA career high annual salary of $800,000, Johnson amassed considerable wealth post-retirement by venturing into manufacturing. In 1995, he established the Piston Group, an auto parts firm that swiftly became a crucial supplier to automotive giants like General Motors, Ford, and Stellantis. Under Johnson’s guidance, the Piston Group has expanded considerably, now boasting 15 US locations and a workforce exceeding 8,300. With annual revenues around $2 billion, Johnson stands out as one of the most prosperous athletes to transition into entrepreneurship.