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$8.5 billion mistake


juice64011

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http://www.msn.com/en-us/sports/nba/agent-had-spencer-haywood-turn-down-10-percent-ownership-stake-in-nike/ar-BBp8Jrv?li=BBnba9I

 

LeBron James raised a few eyebrows in late 2015 when he signed a lifetime endorsement deal with Nike that was reportedly valued at more than $500 million. But that's nothing compared to the offer basketball Hall of Famer Spencer Haywood claims he passed up from the apparel company during his 14-year career as a pro.

 

According to ClickOnDetroit.com, the Detroit native Haywood, who once sued the NBA to gain early entrance into the league after making his NBA debut with the Seattle SuperSonics at age 21, was approached by Nike early in his career with an enticing offer: Either $100,000 or 10 percent of the company in exchange for promoting the company's shoes.

 

In 2016, such a proposition would be a no-brainer, but at the time, Nike was relatively unknown, having launched as Blue Ribbon Sports in 1964, only to become Nike Inc. in 1971. So at the advice of his agent, Haywood took the cash rather than partnering with Phil Knight & Co.

 

The deal ended up working out well for Nike, as Haywood, a gold medalist in the 1968 Olympics, became one of the greatest forwards in NBA history and won a championship with the Los Angeles Lakers in 1980. However it didn't turn out as well as it could have for Haywood, whose 10 percent stake in Nike would be worth somewhere around $8.6 billion today.

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http://www.msn.com/en-us/sports/nba/agent-had-spencer-haywood-turn-down-10-percent-ownership-stake-in-nike/ar-BBp8Jrv?li=BBnba9I

 

LeBron James raised a few eyebrows in late 2015 when he signed a lifetime endorsement deal with Nike that was reportedly valued at more than $500 million. But that's nothing compared to the offer basketball Hall of Famer Spencer Haywood claims he passed up from the apparel company during his 14-year career as a pro.

 

According to ClickOnDetroit.com, the Detroit native Haywood, who once sued the NBA to gain early entrance into the league after making his NBA debut with the Seattle SuperSonics at age 21, was approached by Nike early in his career with an enticing offer: Either $100,000 or 10 percent of the company in exchange for promoting the company's shoes.

 

In 2016, such a proposition would be a no-brainer, but at the time, Nike was relatively unknown, having launched as Blue Ribbon Sports in 1964, only to become Nike Inc. in 1971. So at the advice of his agent, Haywood took the cash rather than partnering with Phil Knight & Co.

 

The deal ended up working out well for Nike, as Haywood, a gold medalist in the 1968 Olympics, became one of the greatest forwards in NBA history and won a championship with the Los Angeles Lakers in 1980. However it didn't turn out as well as it could have for Haywood, whose 10 percent stake in Nike would be worth somewhere around $8.6 billion today.

No combo option?  If he took 90% in cash and a 1% stake in the company he'd be looking at $860 million just for the stock value today. Instead he gobbled up %100 cash.  No style.

 

BTW --  $100,000 in 1964 = $764,570.97 in 2015

 

--according to this claculator:

http://www.usinflationcalculator.com/

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Guy prolly made a killing playing ball and other sponsors m8. Doubt he gives it much thought.

If I remember right he bounced around the NBA for awhile but was addicted to coke and ended up playing in Europe. I'm sure he's not poor but I don't think that's a mistake he will forget about.

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