'Magic Johnson Signed That $25 Million For 25': Shaquille O’Neal On The Decision That Catapulted His Own Wealth

Few know better about contract negotiations than Shaquille O’Neal. He once signed one of the most lucrative deals in NBA history with the LA Lakers. But what if we told you that he never envisioned or wanted to make more than $1 million a season leading up to the deal? It’s a story that sounds crazy years later, as Shaq has become one of the most business-savvy retired athletes in modern times.

O’Neal has had some wild contracts for someone who came up in the 1990s era of the NBA. Most famously, the Lakers gave him $120 million over 7 years in 1996 when they won the bidding war against the Orlando Magic. At the time, it was one of the largest contracts in league history.

However, Shaq never wanted to make that much money. But one player he grew up watching changed everything.

“When I was coming out of high school, I wanted to make 8 million for 10 years, because that’s where the money was. And then Magic [Johnson] signed that 25 for 25, I was like, damn, a million a year,” O’Neal shared on Off The Record.

Magic signed his famous $25 million deal for 25 years in 1984. It was an unprecedented deal that has yet to be replicated since. However, it was given to Johnson with the intention of his becoming involved in management after his career. 

Obviously, O’Neal was in school when news of Magic’s deal broke. But clearly, it stuck with him, as he seemingly had a new sense for how much money could be made in the NBA. So, he hired an agent ahead of his free agency in ‘96, a decision he would not regret. 

“So, when I met with my agent, he said, ‘Man, I asked for $70 million,’” Shaq said. The figure made him take his glasses off and do a double-take. “I was like, what’d you say, man?”

It’s the type of money that modern-day players have now worked up to. Shai Gilgeous-Alexander just signed his deal that will pay him $68.1 million on average. Furthermore,  Joel Embiid, Jayson Tatum, and Devin Booker are all set to make similar amounts in 2028.

Yet, to hear that type of figure uttered back then for a contract must have been crazy. O’Neal’s agent was ambitious.

“I was like, why did you do that? He said, ‘You always start high.’ So, I ended up getting 40. But he said, ‘Don’t worry about it… Because after this 40, I’m going to get you 100. You’re going to be the first $100 million player.’”

While it’s an awesome story, O’Neal must be mixing up timelines. He never had a contract worth $40 million a year. But he did go on to sign another $100 million deal with the Miami Heat in 2005. 

In the end, though, Shaq has become super business and money-savvy. He has a diverse range of partnerships from Krispy Kreme to Papa John’s, and he’s continued to rake in the cash after retiring. But to think that there was a time when he was so humble as to only want $800k a year is endearing.