Many young people get a tough lesson in taxes that sticks with them. Shaquille O’Neal is one such athlete who built his $400 million net worth after educating himself. Now he’s financially wiser and in the position to educate other NBA pros. In the wake of Anthony Davis signing his biggest contract yet, Shaq wants him to stay smart. As usual, when AD is enjoying a momentary great thing, Big Diesel swoops in for a big reality check.

Shaq has been hard on Anthony Davis for a long time now. That’s, however, his way of looking out for the Lakers star.

Shaquille O’Neal gives downside of Lakers’ new big expense

Anthony Davis signed a contract extension with the Los Angeles Lakers that will see him make over $186 million across three years. The franchise has a history of top-billed players, including one 7’1″ dominant center named Shaquille O’Neal. Back in 1996, the Lakers signed him for $120 million for seven years. He didn’t get all of that $120 million at all.

It’s why when he appeared on Rex Chapman’s Owned podcast recently, he said, “It looks good on paper. He’s about to get $60 million per year… not in that state.” Shaq sent a warning to AD about state taxes, athlete taxes, FICA and so much more that will make, “50% of that money – poof – gone.” 

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Shaq is speaking from his own experience as he said, “Same thing happened to me.” He famously splurged his first paycheck until he got the residual after-tax deductions.

As the story goes, Shaquille O’Neal came from Orlando Magic to the Lakers unaware tax laws differ by state. Florida is one of the states that doesn’t levy state income tax, unlike California. Excited about his new salary bump, he splurged on luxury cars for himself and his parents.

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“I used to get all my checks upfront ’cause I like cash,” he told Chapman. Because of that policy, when he received his massive paycheck, it was halved by taxes. He often narrates this story for other athletes to learn from his mistakes.

So to AD and “all the guys watching this,” Shaq said that they should learn financial literacy. Especially things like the athlete tax, commonly referred to as the “jock tax,” where players on an active roster at an away game have to pay a tax to the state. Shaq also learned about it the hard way when he had to pay jock tax even when he was injured. And he knows AD has his fair share of injuries while still on the roster.

Shaq is looking out for Anthony Davis

Charles Barkley and Shaquille O’Neal are Davis’ toughest critics. From mocking his injury to his plays, they give him no quarter. But Shaq says it’s only so he turns this criticism into motivation.

This is exactly what he hopes for with his financial advice for Davis and other players signing Supermax contracts. Most recently, Davis enjoyed redemption after a terrible season opener. However, O’Neal is not giving him the benefit of the doubt.

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Shaq is going to continue to give his take on Anthony Davis till he’s up to his standards. Do you think he’s too hard on him?