Spencer Haywood Became Basketball’s First Billionaire
Phil Knight wanted a rebel. Spencer Haywood wanted equity. The only issue? An agent was looking for money. Imagine a man of size who would provide you with thirty points or 20 boards in a night. All through the season.
As a novice.
At 19 years old.
The man in question identified himself as Spencer Haywood.
By the time the 1970s began, the basketball star was on the verge of becoming a household name. Already sporting high-end equipment at the Olympics, ABA, and NBA, Haywood had every honour a basketballer could imagine before becoming old enough to lease an automobile.
On the other hand, and off the court, he was a legend, taking on his National Basketball Association in an innovative suit that went all up to the most prestigious court in the world.
“The Supreme Court said that you couldn’t stop a person from making a living in America,” Haywood wrote to Boardroom. “Even when you could send people away to war at 18. “
In fact, at the young age of 21, Spencer Haywood took on the NBA’s age limit and, consequently, young players’ ability to achieve their earning potential. By challenging the NBA’s age limit, he paved the way for future superstars such as Michael Jordan, Kobe Bryant, LeBron James, Michael Jordan, and Kevin Durant to become professionals before they had completed four years in college.
Spencer Haywood was a hooper and trailblazer. He was also independent.
Spencer Haywood, as well as the Swoosh
His all-star stature and adamant spirit inspired GMs looking to fill seats, young people seeking a hero and supermodels looking for an heir.
The most important thing is that it talked to Phil Knight.
As early as his rise to the top of the heap, the bossman at newly called Nike had discovered the athlete that was made to push their products. After many years of working in the categories of jogging and racing, Knight was ready to dominate every athletic endeavour by branding the top and brashest with Swoosh-branded shoes.
“There was a lot of media around me, so Phil wanted me to rep the shoe,” Spencer Haywood said. “I didn’t have any impression of Nike because I had just gotten out of the Supreme Court case and was excited to play basketball.”
Haywood seemed like the best match for the brand’s debut in basketball. In the days before Knight would dress MVP players such as Michael Jordan or defiant programs like the Georgetown Hoyas, Haywood had the”it-factor” as an athlete that was more than scoring, wearing an infectious attitude.
Haywood played for the Seattle Supersonics, a franchise within proximity to Knight’s Oregon home.
However, Nike was in its beginnings at the time and was largely untested on the hardwood and unknown to the public. The majority of top talent at the time were taking their checks for Adidas or Converse and were not willing to risk a tried-and-true product in the hopes of developing something that was a brand new brand.
“The first time I wore the Nike Blazer was as a prototype in LA in the 1972 Olympic Games before they brought it to market,” Haywood stated. “Wilt Chamberlain Jerry West, and Oscar Robertson were all on the team. Wilt asked, ‘What are the you going to do with that shoe? It’s nothing more than an upside-down Newport Wilt said, ‘What’s that you’re doing with this shoe?'”
Despite the jokes of his All-NBA teammates, Haywood liked Knight and considered it a good idea to give a shot to Nike. Both made their living in the Pacific Northwest, a region where brands and players might be neglected due to the bias of big cities.
Signed, Sealed as well… Sold
After playing in a sample product and negotiating terms, The table was established: Nike would sign the hard-hitting player who had just fought against NBA on the Supreme Court. For his skills, determination and backing, he’d receive equity in the business that he was trying to create.
There are varying reports on the amount of equity Haywood was expected to receive from Nike. Even to his closest friends and the most important financial institutions, a knight who was not known to be a generous investor during his Blue Ribbon Sports days took on considerable risk. But, by signing Haywood and acquiring Haywood, he’d be able to draw attention to his brand in the adored Pacific Northwest.
The formula for endorsement was already along with Steve Prefontaine. What size could it get in basketball?
Signed, sealed, and delivered, Knight had the face of his basketball company, and Haywood was the owner of his share of the equity.
The only issue? Haywood’s agent demanded his share of the contract, and he was not stopping Haywood.
“I went on the road and he had the power of attorney letter,” Haywood told about his representative. “He couldn’t figure out how to get his 10%, so he sold my stock for the cash.”
Haywood felt devastated. Not just had his agent taken the future earnings that could have changed his life, and he also recommended that he take equity from the beginning.
“My agent was preaching to me at the time to not take the money for tax advantage purposes,” Haywood told me on the initial Nike contract. “We were in agreement on this, but he got overly greedy. He was unable to find out the best way to obtain this percentage, and instead, he asked me to pay $10,000 of the $100,000, and then moving ahead.”
At the time, the amount paid by Haywood’s agent’s fee for selling his stock was equivalent to what’s nowadays considered to be peanuts. As time passed, its value was much higher.
“I lost about $2.8 billion,” Haywood stated.
Yes, if Spencer Haywood had been able to keep the stock options he acquired from the original Nike contract, he’d become a billionaire.
Unfortunately, agents that robbed athletes of their riches during that time were seen as a badge to show honour for the most corrupt of us. Haywood wasn’t one of the few All-Star who was sent to the bathroom by a corrupt agent, but by a few levels, Haywood is the one who was the worst-hit financially.
In the course of his playing career, Haywood continued to support Nike despite the harm caused by the company. The first time he supported Nike’s Swoosh to the Swoosh in Seattle and then later settled in Los Angeles, New York, in addition to DC, Haywood kept Nike Blazers and Nike Bruins on his feet.
“I was still with Nike until the time I retired,” the man said.
Good Karma and Good Business Business
After leaving the NBA as an active player in 1983, Spencer Haywood was a fan of Nike for the past decade and set the stage for the brand’s future to ensure the top basketball talent for the generations to come. In addition to fighting the most powerful institutions of basketball on the court and helping to create the biggest sportswear brand on the basketball court, the people who benefited from Haywood’s determination throughout the 1970s have the possibility of making millions and billionaires in the present.
This is more than good luck for Haywood, and it’s a good business opportunity for the players and the brands and the NBA.
“One of the greatest business deals I’ve ever done is deciding to fight the NCAA, the NBA, the ABA, and their four-year rule,” Haywood stated. “By knocking that out in 1971, I’ve created $32 billion in player salary.”
Haywood has become an all-around player and a facilitator of changes in the years after his time playing. He is the subject of a book and a documentary and an advocate in the field of mental and physical health. Haywood started studying business and investing in real estate after his agent’s wrongful actions, from Salt Lake City to his hometown in high school, Detroit.
Overall in all to his Nike contract, Knight remains in contact with Knight. Knight is a regular participant in his Pac-12 Tournament each year with Knight.
“That’s my guy,” Haywood stated about the founder. “I’m extremely proud of what the founder has accomplished in the world of Nike because I was aware at the time it was only one shoe. This was the Blazer and it was that. The Blazer was the only basketball shoe that we owned. What’s the situation right now? It’s a multi-billion dollar company.”
Today, Michael Jordan credits Spencer Haywood for being the first basketball player of his stature to join Nike initially, setting the stage for his famous multi-billion-dollar brand.
Spencer Haywood is still close to Nike athletes from different generations, helping them through his personal story and endorsements on the field.
“I wear some LeBrons, but most of my shoes are KDs,” Haywood admitted. “You always want to achieve equity however, Nike represents me and it’s my identity. Every one of my top athletes have Nike as do I. an Nike man.”
In the same way, LeBron and Durant are wearing Nikes with their logos and reap the benefits from more years of professional basketball (and the money that comes with it). Much of that is due to Haywood. Still speaking out against inequities within the basketball industry and still a close friend of Phil Knight, Spencer Haywood may not be the first basketball billionaire. Still, every legend that’s been created has stood on his shoulders.
Also read, Roy Williams, MJ, & the Time Kansas (Almost) Joined Jordan Brand
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