Spencer Haywood should have been the first billionaire athlete and one of the richest people … but his agent made a big mistake

In the early 1970s, an emerging NBA star was offered an unusual mediation contract by a shabby sneaker startup in Oregon. The company was not known, had just changed its name and had no large athletes on the roster. But his founder had a vision and he wanted this player to be the face of the brand. The offer? A choice between a lump sum or part of the company.

The aspiring young player was Spencer Haywood, a 22-year-old basketball phenomenon who had already won Olympic gold, dominated college and a professional basketball and questioned the age limit of the NBA in a pioneering legal case that redesigned the league. At the age of only 21, Haywood had the world at his feet. He was brave, charismatic and without fear of taking big steps. What came next should have set it up for life.

Instead a single decision – made by someone else without his knowledge of the stupidest reason – led to the most financially painful missed opportunity in sports history. How painful? Well, it would have expressed it like this: If the decision had been made in the other, Spencer would be received today $ 103 million Every year in dividends, and his assets would not only make him the richest athlete of all time, but also about the 300th richest person in the world.

From the NCAA star to ABA sensation

Spencer Haywood's promotion to basketball -Ruhm was meteorical. As a student at the University of Detroit Mercy, he scored an average of 32.1 points and one NCAA best 21.5 rebounds per game and showed numbers that were immediately shot over the basketball world. He left the school early to join the Denver Rockets from ABA, where he achieved monstrous 30 points and 19.5 rebounds per game in his rookie season.

At that time, the NBA rules prohibited the players from league up to four years after graduating from high school. 21, Haywood signed at Seattle Supersonics and sued the NBA to play the right. He won. His legal victory opened the door for future superstars such as LeBron James, Kobe Bryant and Kevin Garnett to enter the NBA directly from the high school or after only one year of college.

During his NBA career, Haywood played for several prominent franchise companies: The Seattle Supersonics, New York Knicks, New Orleans Jazz, Los Angeles Lakers and Washington Bullets. He won a championship with the Lakers in 1980.

(Photo of focus on sports/getty pictures)

Nike arrives

In 1971 Nike was still a complete unknown. The company had recently renamed Blue Ribbon Sports and had no market share, no signature shoe and no large athlete on his list. But co -founder Phil Knight wanted to change that. He saw Haywood as the perfect ambassador – talent, brave and charismatic.

Knight offered Haywood a deal: become the face of Nike in exchange for $ 100,000 in cash (corresponds to around 625,000 US dollars today) or 10% equity in the company.

Haywood was interested, but he was on the way. His agent had the lawyer's authority, which means that he had full control to make financial decisions on behalf of Haywood. What happened next became one of the most painful business failures in sports history.

A billion dollar error

Years later, Haywood revealed the whole story:

“I took to the street and [my agent] Had the attorney's power. He couldn't find out how he could get his 10%, so he sold my stock for the money … he got greedy. He could not find out how he could get this percentage instead of asking and continuing to ask for $ 10,000 of $ 100,000.“

In other words, because the agent wanted to take over 10,000 US dollars 9 billion dollars (Based on the current market capitalization of 86 billion US dollars). And that doesn't include dividends! If someone has 10% of Nike today, they would roughly earn 103 million US dollars a year in dividends. So it can be said with certainty that Spencer with dividends has slightly lost with more than 10 billion US dollars.

What could have been

If Haywood had kept the proportion of 10%, he would have been a billionaire long ahead of Michael Jordan or Magic Johnson. He could have had more Nike than Jordan, although he never had a typical shoe.

But it shouldn't be. Instead, Haywood continued his successful basketball career:

• NBA champion with the Los Angeles Lakers in 1980
• Basketball Hall of Fame Induician in 2015
• Career average values ​​of 20.3 points and 10.3 rebounds play in 844
• Olympia gold medalist in 1968
• Former husband of Supermodel Iman

He also fought against a serious addiction for cocaine, which briefly derailed his game days in the early 80s. He has been sober since the 1990s – a decision that he describes as the greatest of his life.

A legacy greater than billions

Although Haywood missed the fortune, he never lost sight of his effects on the game. He estimates that his legal struggle has contributed to closing more than 32 billion US dollars of career revenue for players who entered his footsteps.

“So yes, I lost a lot of money. But I helped many boys to do more.“

Spencer Haywood helped the modern NBA. He just didn't get the billions that should have been with it.