In the early Seventies, a rising NBA star was supplied an uncommon endorsement deal from a scrappy sneaker startup in Oregon. The firm wasn’t well-known, had simply modified its identify, and had no massive athletes on its roster. But its founder had a imaginative and prescient, and he needed this participant to be the face of the model. The supply? A selection between a lump sum of money or a chunk of the corporate.
The rising younger participant was Spencer Haywood, a 22-year-old basketball phenom who had already received Olympic gold, dominated school and professional basketball, and challenged the NBA’s age restrict in a landmark authorized case that reshaped the league. At simply 21 years outdated, Haywood had the world at his toes. He was daring, charismatic, and unafraid to make massive strikes. What got here subsequent ought to have set him up for all times.
Instead, a single determination — made by another person, with out his data for the dumbest doable cause — resulted in probably the most financially painful missed alternative in sports activities historical past. How painful? Well, put it this manner: Had the choice gone the opposite manner, as we speak Spencer can be receiving $103 million in dividends EVERY YEAR, and his web value would make him not solely the richest athlete of all time however roughly the three hundredth richest individual on the planet.
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From NCAA Star to ABA Sensation
Spencer Haywood’s rise to basketball stardom was meteoric. As a sophomore on the University of Detroit Mercy, he averaged 32.1 factors and an NCAA-best 21.5 rebounds per recreation, placing up numbers that immediately turned heads throughout the basketball world. He left faculty early to affix the ABA’s Denver Rockets, the place he posted a monstrous 30 factors and 19.5 rebounds per recreation in his rookie season.
At the time, NBA guidelines barred gamers from becoming a member of the league till 4 years after highschool commencement. Still simply 21, Haywood signed with the Seattle TremendousSonics and sued the NBA for the correct to play. He received. His authorized victory opened the door for future superstars like LeBron James, Kobe Bryant, and Kevin Garnett to enter the NBA straight out of highschool or after only a yr of faculty.
Over his NBA profession, Haywood performed for a number of distinguished franchises: the Seattle TremendousSonics, New York Knicks, New Orleans Jazz, Los Angeles Lakers, and Washington Bullets. He received a championship with the Lakers in 1980.
(Photo by Focus on Sport/Getty Images)
Nike Comes Calling
In 1971, Nike was nonetheless a whole unknown. Recently renamed from Blue Ribbon Sports, the corporate had no market share, no signature shoe, and no main athlete on its roster. But co-founder Phil Knight was seeking to change that. He noticed Haywood as the right ambassador—proficient, daring, and charismatic.
Knight supplied Haywood a deal: grow to be the face of Nike in trade for $100,000 in money (equal to about $625,000 as we speak) or 10% fairness within the firm.
Haywood was , however he was on the street. His agent had energy of legal professional, that means he had full management to make monetary selections on Haywood’s behalf. What occurred subsequent turned one of the crucial painful enterprise missteps in sports activities historical past.
A Billion-Dollar Blunder
Years later, Haywood revealed the complete story:
“I went on the road and [my agent] had the power of attorney letter. He couldn’t figure out how to get his 10%, so he sold my stock for the cash… He got greedy. He couldn’t figure out how to get that percentage instead of asking me for $10,000 out of $100,000 and moving on.“
In different phrases, as a result of the agent needed to take a straightforward $10k over studying how you can take a lower of fairness, Spencer misplaced out on $9 BILLION (primarily based on Nike’s present $86 billion market cap). And that does not embody dividends! If somebody owned 10% of Nike as we speak, they might earn roughly $103 million PER YEAR in dividends. So it is secure to say that with dividends, Spencer simply misplaced out on greater than $10 billion.
What Might Have Been
Had Haywood stored the ten% stake, he would have grow to be a billionaire lengthy earlier than Michael Jordan or Magic Johnson. He may have owned extra of Nike than Jordan ever did, regardless of by no means even having a signature shoe.
But it wasn’t to be. Instead, Haywood continued his profitable basketball profession:
- NBA Champion with the Los Angeles Lakers in 1980
- Basketball Hall of Fame inductee in 2015
- Career averages of 20.3 factors and 10.3 rebounds throughout 844 video games
- Olympic gold medalist in 1968
- Former husband of supermodel Iman
He additionally battled and overcame a critical dependancy to cocaine, which had briefly derailed his enjoying days within the early ’80s. He’s been sober because the Nineteen Nineties—a call he calls the best of his life.
A Legacy Bigger Than Billions
Despite lacking out on the fortune, Haywood by no means overlooked his influence on the sport. He estimates that his authorized combat helped unlock greater than $32 billion in profession earnings for gamers who adopted in his footsteps.
“So yeah, I lost out on a lot of money. But I’ve helped a whole lot of guys make even more.“
Spencer Haywood helped form the trendy NBA. He simply did not get the billions that ought to have include it.
