STAR ATHLETE INC. Player-Moguls Go for the Gold

By Kristen Jones

Becoming a sports superstar is a rare victory that only a few people in the world ever achieve. However, for African American athletes, the path to such phenomenal success is often even more challenging due to the systemic barriers they must first overcome. Rising above these obstacles to reach such a high level in sports is itself an amazing accomplishment. However, for those who use their athletic achievement to also build businesses and invest, their success goes beyond the world of sports and puts them among an even smaller group of athletes who have become sports moguls and perhaps multimillionaires or billionaires.

When we think of black athletes who went on to greatness, we may think of stars like Jesse Owens, Jackie Robinson, Satchel Paige, Muhammad Ali, Bill Russell and Hank Aaron, who paved the way for future black athletes. Through determination, resilience and a struggle against a system of racism and discrimination, they helped build the foundation for other African Americans to have the opportunity to excel in professional sports and, in addition, build business empires.

Today’s Athletic and Business Superstars

In 1984, when rookie Michael Jordan entered the NBA after an impressive college career and performance at the summer Olympics, no one could have known the full impact he would make on the court. From the beginning, he was a masterpiece to behold and steadily piled up great highlights and statistics before winning awards and championships. Then, in 1985, his cultural influence began to skyrocket with the debut of his Air Jordan sneakers. It was a groundbreaking time as Nike gambled on the young superstar by giving him his own brand.

NBA stars at the time such as Earvin “Magic” Johnson, Larry Bird, Julius Erving and Isiah Thomas endorsed Converse Weapon sneakers, but no sneaker company had built a multimilliondollar marketing campaign around a single player who played team sports. Jordan elevated the idea of “signature” sneakers, touting not only his name but more than one color. As he continued to break records, he attracted the attention of fans and the media alike, and it was through this popularity that the Air Jordan shoe took off.

After that came deals with big name companies such as Chevy, Coca-Cola, McDonald's and Wilson Sporting Goods. By late 1991, when he was ready to enter his eighth season in the NBA and hosted NBC’s Saturday Night Live, he had become a cultural icon. That year, he also led the Chicago Bulls to their first-ever league championship, and his Air Jordan sneakers were popular worldwide, with sales of AJ footwear and apparel in the billions. By 1998, when he and the Bulls won a sixth NBA championship, Jordan was also the CEO of the Jordan Brand. Due to the huge success of his sneaker and apparel line, Nike had turned it into a separate entity for him.

With that blueprint in place, Kevin Garnett, Allen Iverson and Shaquille O’Neal also built their own successful personal brands. Additionally, Kobe Bryant, who was similar to Jordan in many ways, went on to build an incredible empire that included his family. LeBron James, however, has perhaps achieved the most since Jordan. According to Forbes, he was the first active player in the NBA to reach billionaire status.

Such success was not limited to those in the NBA. The rise in the late 1990s of golf phenom Tiger Woods was possible in part due to what has been called “The Jordan Effect.” The public’s extreme admiration for Jordan for nearly four decades has created a domino effect for black athletes. Like Woods, gymnast Simone Biles and tennis stars Venus and Serena Williams have also become huge beneficiaries and have now established their places in the business of sports.

Growing Empires

In addition to being an NBA legend, Shaquille O’Neal is also a businessman and philanthropist. The Inside the NBA analyst is reportedly making more money in retirement than he was during his playing career, and his net worth is estimated to be over $400 million. In his own reality TV show, Shaq Life, O’Neal revealed that he owned around 50 brands, a number that is expected to have risen over the years. It includes 155 Five Guys franchises, 40 24-Hour Fitness franchises, 17 Auntie Anne's pretzel franchises, 150 car washes, several nightclubs in Las Vegas, a shopping center, a movie theater, and his own restaurant, Shaquille’s. In addition, he founded the Big Chicken restaurant chain.

O’Neal has also invested in Apple, Google, Lyft, vitaminwater and Ring and is part-owner of the Sacramento Kings He is also heavily involved with the pizza chain Papa John's and owns several franchises of Krispy Kreme donuts. Other notable investments include Beachbody, Forever 21, JCPenney, Elvis Presley, Reebok, NRG eSports and Pepsi.

Since the late 1980s, Magic Johnson has also invested in various large-scale businesses that have made him a force in various industries. His investments span across entertainment, sports, technology and tangible products, with the primary focus on benefitting multicultural communities. He is the chairman and chief executive officer of Magic Johnson Enterprises, an investment conglomerate that provides high-quality products and services that focus primarily on ethnically diverse and underserved urban communities. In addition to the Los Angeles Sparks, Cigna, Jopwell, Marvel and more, he is involved in various franchises. Although his investments are not limited to franchises, he owns 30 Burger King restaurants, more than a dozen 24-Hour Fitness centers, and a TGI Fridays. Additionally, he has had multiple Starbucks licenses.

These assets significantly level up the Basketball Hall of Famer’s business portfolio and continue to solidify his legacy as a power player. As of 2022, Johnson's net worth was estimated at more than $600 million, making him one of the richest athletes in the world.

Los Angeles Lakers superstar LeBron James is doing even better financially. According to Forbes, he is one of the highest paid athletes in the NBA, having amassed a portfolio of endorsement deals and commanding one of the most impressive year-over-year salaries.

James’ work is supported by a variety of businesses such as Nike, PepsiCo, Rimowa and Walmart. He also formed Ladder, a health and wellness company, in 2018, with Arnold Schwarzenegger, Cindy Crawford and Lindsey Vonn as co-investors. Additionally, he owns a production company, SpringHill Entertainment, which produces content for TV, film and digital media, and he has formed a media company with Maverick Carter called Uninterrupted, which provides athletes a platform to tell their stories in their own words.

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Through his investments, he has also become a partner in a number of companies, including Beats By Dre, Liverpool FC and Blaze Pizza. In addition, he has launched his own line of shoes, clothing and accessories with Nike.

Beyond Basketball: A Sprinter Sprinter Usain Bolt has followed other athletes in pursuing business interests, and he went big for his Tracks & Records restaurant opening in Jamaica in 2018, outfitting the outside area with a large statue of himself made mostly of real bolts. The Olympic legend has speedily become a restaurant mogul with the opening–his third Tracks & Records eatery in Jamaica. Additionally, he has more Tracks & Records restaurants in the United Kingdom; an online store where he sells sporting goods and Usain Boltbranded gear; and Champion Shave, which sells 6-blade razors at discounted prices. He is a marketing force with more than a dozen sponsors, and most of the deals have continued in retirement. His biggest deal is with Puma, which pays him more than $10 million annually.

Floyd Mayweather, boxing

A Race Car Driver

Lewis Hamilton, British-born Formula One racing driver holds a record seven world championships. He dabbles as a musician and vocie actor and has put his $260 million fortune to good use: fashion design, plant-based restaurants and partownership of the Denver Broncos NFL team.

A Golfer

Tiger Woods, the World Golf Hall of Famer, tied for 1st place in 82 PGA tour wins over a 27-year career. Once the world's most marketable athlete, with over $1 billion in endorsement fees, Woods is the first golfer to attain a net worth of over a billion dollars.

and draw (1996-2017), later a promoter, earned $1.2 billion in his career.