NBA News: Shaquille O’Neal Wants To Buy Reebok From Adidas

Four-time NBA champion and avid investor Shaquille “Shaq” O’Neal now wants to add neglected sports brand Reebok to the growing list of business firms he controls.

Reebok is a subsidiary of Adidas AG, the largest sportswear manufacturer in Europe and the second largest in the world after Nike. Adidas bought Reebok in 2005 but is now considering selling the brand after Reebok’s revenue fell 3 percent in 2018.

O’Neal said his next big move will be to buy Reebok, with which he has a sentimental connection. Reebok was the first company to offer the rookie O’Neal a multi-year, multi-million dollar shoe deal worth $15 million in 1992.

O’Neal joined the NBA in 1992 playing for the Orlando Magic. O’Neal, who stands 2.16 meters tall, was once Reebok’s spokesperson.

“Well, (Authentic Brands Group, one of the companies) I’m involved in, we just bought Sports Illustrated but I would love to purchase Reebok,” O’Neal told "CNBC Make It."

O’Neal said he wants to buy Reebok because Adidas has “diluted (the brand) so much to where it’s almost gone.”

“If they don’t want it, let me have it,” said O’Neal. “I want to bring them back to basketball and to fitness.”

O’Neal’s eclectic investments include his own line of branded products, restaurant franchises, fitness gyms and car washes. He also has partnerships with Papa John’s, Krispy Kreme and Carnival Cruise Line, among others.

The former Los Angeles Lakers star remembers that Reebok was once huge in sportswear and shoes, battling neck and neck against Nike. Now, he says Reebok is struggling to find its way as it faces tough competition from Adidas and Under Armour. O’Neal believes he can fix Reebok.

O’Neal’s interest in Reebok comes at a good time for the company. Reebok said its classic sneakers from the 1980s and 1990s are making a comeback among millennials.

Reebok has seen consecutive double-digit growth in its Classics business over the last five years. The Classics business unit recreates iconic Reebok sneakers from the past, and now comprises 40 percent of Reebok’s total sales, outselling its performance shoe division.

Last year, O’Neal said he’s got a sort of “golden rule” when investing in companies.

“I’m going to invest in things that are going to change people’s lives,” he said. “My style is very simple.”

Based in Boston, Reebok produces and distributes fitness, running and CrossFit sportswear including shoes and clothing. It’s the official footwear and apparel sponsor of Ultimate Fighting Championship (UFC) and CrossFit.