Spencer Haywood Missed A Chance To Earn Over $2.8 Billion With Nike Because His Agent Made A Mistake

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Spencer Haywood was one of the best power forwards of his time, becoming a 4-time All-Star and 2-time All-NBA First Team in his career. He was an icon for the Seattle SuperSonics, setting various historic records for the franchise from his time in the 1970s. All his All-Star and All-NBA appearances came during his time in Seattle, with the star even getting his jersey retired by the now-defunct franchise in 2007.

Haywood was extremely popular during this time and was in talks to sign with a shoe company called ‘Blue Ribbon Sports’. He sat down with the founder of the company, Phil Knight, and was given a proposition to either accept $100,000 as a payment for his marketing services or accept a 10% stake in the company. 

Blue Ribbon Sports went on to become Nike and are now the leading sports apparel maker in the world. Haywood wanted to accept the 10% stake, which would be worth more than $2.8 billion today but ended up cashing out early because of his agent.

After Haywood was offered the deal by Knight, many people close to him suggested he takes the $100,000 as cash instead of taking 10% equity of the company. However, he chose the equity but was made to sell the stake by his agent. A similar deal was offered to Magic Johnson in 1979, but he passed on it to sign with Converse, a decision he regrets to this day.  

As his agent couldn’t get a 10% cut of a possible stock option, he made Haywood sell the 10% stake for $100,000 so that he could pocket the $10,000 he was entitled to. While Spencer getting $90,000 in 1973 meant a lot, it stands as chump change compared to what he could have had long-term if he stuck with the Nike equity and didn’t have an agent in his ear telling him to sell it.

Haywood could have become the first billionaire in basketball with that Nike stake, considering how the company boomed after its association with athletes like Michael Jordan. MJ would become the first billionaire in the sport because of his ties with Nike and them, allowing MJ to build the ‘Jordan’ brand under the Nike umbrella.

The only other person to become a billionaire in the NBA is LeBron James, another player with a deep relationship with Nike. LeBron has a lifetime contract with the brand that is expected to net him over a billion dollars as part of the contract alone. 

Haywood missed out on a massive opportunity in 1973 and one that he definitely still thinks about. Nobody saw Nike becoming the force that it did, but at least Haywood attempted to show his belief in the company and take ownership over a one-time payout. One agent who was more concerned about his bottom line swooped in and cost Haywood generational wealth. 

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Ishaan Bhattacharya is a content manager for Fadeaway World from New Delhi, India. With his expertise in NBA content creation, Ishaan brings a wealth of experience to his role, contributing to the site's authority and reach within the basketball community. Over the last year, Ishaan has interviewed Ray Allen and Mark Tatum, while also covering the 2023 NBA Abu Dhabi Games which saw the Dallas Mavericks take on the Minnesota Timberwolves.Since joining Fadeaway World in March 2022, Ishaan Bhattacharya has become known for his unique perspective on the NBA. He consistently delivers this insight through his daily news coverage and detailed opinion pieces on the most significant topics in the league.Before his tenure at Fadeaway World, Ishaan worked in corporate communications, where he serviced prominent sports brands, including NBA India, Sports18, Amazon Prime Sports, and Royal Challengers Bangalore. This experience in strategic communications for leading sports entities has enhanced his ability to craft impactful narratives and connect with a global audience.A true MFFLer (Mavs Fan for Life, for the uninitiated), Ishaan is a massive fan of the Dallas Mavericks. When he is not upset about Jalen Brunson walking in free agency, you can see Ishaan as an avid gamer and content creator. His passion for basketball extends beyond the Mavericks, as evidenced by his thoughtfully curated NBA Mount Rushmore, featuring LeBron James, Michael Jordan, Kareem Abdul-Jabbar, and Bill Russell—each representing distinct eras and bringing their unique qualities to the game.Featured On: ESPN, Sports Illustrated, Bleacher ReportYahoo Sports, NBA, Fox Sports, The Spun
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