Millionaire Shaquille O’Neal Was Given a Brutal Reality Check Due to High Tax Rates in LA

Shaquille O’Neal is one of the greatest players ever to have played the game of basketball. The Los Angeles Lakers legend was a dominant player on both ends of the floor. Often, people only talk about Shaq’s offensive game, and not about how strong he was on the defensive front too. Shaq often used his height and physicality to prevent players from going to the basket and block shots if needed.

Shaq was popular on every team he played for. Due to his popularity, he signed huge endorsement deals. Surprisingly, he continues to sign more endorsement deals even after being retired for more than ten years.

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When Shaq left Orlando in 1996, he signed one of the biggest ever NBA contracts with Los Angeles Lakers at that point in time. His deal at the time was seven years for $121 million. But on the recent episode of his podcast, “The Big Podcast with Shaq”, he talked about how LA’s tax rate gave him a reality check.

The summer Shaquille O’Neal spent his entire paycheck

Referring to the high taxes in LA, Shaq said, ” $121 million for seven was good enough for me but then reality hit because of LA tax and FICA..no seriously when I get to LA I am in super floss mode.. I go to a Rolls Royce dealership matter of fact Mike Tyson is there too.. he just bought one so I am there looking how much is this and I was in my flip flops.”

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He also said, “ I like to spend but I spend however much I want to spend so I am looking at these cars..how much is this car 450k naah , how much is this 350k, then an old person asks me son can you afford these cars you keep asking about the price.. now I am pissed.”

He finished it by saying, “ So I bought a mansion that summer and get a call from my accountant saying Shaq I love you but you do realize you spent your whole contract.. I got $20 million that year but you don’t get 20 you get $10.9 million.. so I had spent my whole cheque that summer.” 

When we see as fans see players signing huge contracts, we never consider these things, such as tax and all playing a huge role in an athlete’s world. Shaq’s example gives an insight into how athletes also have to take care of their finances and how does the money they actually make.